– By Neha Juneja
Financial independence is a crucial aspect of empowerment, yet it remains a challenge for many women. According to the DC based Women’s World Banking, women are disproportionately affected by financial illiteracy compared to men, facing barriers such as limited access to education, cultural norms, and systemic inequalities. In many parts of the world, including India, women encounter numerous obstacles in gaining financial literacy. Cultural norms often dictate traditional gender roles, which may prioritize men’s financial decision-making over women’s. Additionally, unequal access to education further exacerbates the problem, with women being less likely to receive formal financial education compared to men. According to a study conducted by the Organisation for Economic Co-operation and Development (OECD), the gender gap in financial literacy is wider in countries with lower levels of gender equality.
Moreover, systemic inequalities, such as limited access to financial services and discriminatory practices, hinder women’s financial inclusion. These barriers perpetuate financial dependence and limit women’s economic & social opportunities. While financial literacy remains a challenge for women globally, the situation in India presents unique complexities compared to the developed world. Developed countries often have more comprehensive financial education programs and policies in place to promote financial literacy among women. According to a study published by the Global Financial Literacy Excellence Center (GFLEC), women in developed countries tend to score higher on financial literacy assessments compared to those in developing nations.
Efforts to improve financial literacy among women in India have been initiated through various governmental and non-governmental programs. However, the impact of these initiatives is limited by cultural norms, socioeconomic disparities, and infrastructural challenges. Despite the challenges, empowering women with financial literacy presents a significant market opportunity for financial institutions and service providers. Studies have shown that when women are financially empowered, they contribute to economic growth, poverty reduction, and societal development. Therefore, catering to the unique financial needs of women can lead to substantial market growth and innovation.
In emerging markets like India, there is a vast untapped market of women who could benefit from financial services tailored to their needs. By offering products such as savings accounts, microloans, and insurance schemes designed with women in mind, financial institutions can tap into this lucrative market segment while simultaneously promoting gender equality and social inclusion. Furthermore, investing in women’s financial literacy pays long-term dividends by building a more resilient and inclusive economy. Educated and financially empowered women are better equipped to make informed financial decisions, manage household budgets effectively, and invest in their families’ futures.
Investing in women-owned businesses is imperative for financial inclusion as it not only fosters economic growth but also promotes gender equality and empowerment. By providing support and resources to women entrepreneurs, financial institutions and investors can help bridge the gender gap in access to capital and opportunities. Women-owned businesses often have a strong social impact, creating employment opportunities and driving innovation in diverse
sectors of the economy. Therefore, fostering an ecosystem that encourages and facilitates the growth of women-owned businesses is essential for promoting financial inclusion and realizing the full potential of women as economic agents.
Addressing the challenges of women’s financial literacy is not only a matter of social justice but also a strategic imperative for economic growth and stability. By bridging the gender gap in financial literacy, we can unlock the full potential of women as drivers of economic progress and agents of change. Empowering women with the knowledge and tools to navigate the financial landscape not only benefits individuals and families but also society as a whole. As we strive for a more inclusive and prosperous future, let us prioritize women’s financial empowerment as a catalyst for positive change.
(Neha Juneja is the co-founder and CEO at IndiaP2P.)
(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.)