Women pay digitally, borrow better, default less, and still get less credit and cover, says report

• Women now comprise 47% of India's internet users, up from 20% in 2014.
• Women still underserved in credit, investments, and insurance despite digital growth
• Custom financial solutions for women could unlock major BFSI opportunities.

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India’s women are increasingly powering the shift to digital finance, yet remain underserved across key financial products. Women now make up 47 percent of the country’s internet users, up from 20 percent in 2014, and their digital payment usage has nearly doubled from 22 percent in FY15 to 42 percent in FY25E, compared with 35 percent to 49 percent among men, according to Redseer data.

The report by the management consulting firm further indicated that, despite improved digital adoption, with women now comprising 200 million users, they remain underserved across key financial products in India, including credit, investments, savings, and insurance, in terms of both volume and value.

“Our report shows the next phase of growth will come from closing relevance and representation gaps for women. BFSI communication remains largely male-centric or gender agnostic, with women visible but rarely portrayed as primary decision makers,” said Jasbir S. Juneja, Partner, Redseer Strategy Consultants.

As of December 2024, women make up only 17 percent of active personal loans, 13 percent of outstanding credit card portfolios, and 22 percent of consumer durable loans. In wealth and long-term savings, they hold 23 percent of mutual fund AUM (February 2024), account for 27 percent of new EPF subscriptions (2024-25), and represent just 34 percent of new insurance policies (March 2023), the data showed.

Although women constitute a high-growth opportunity segment for financial products and services, they represent a low-risk, high-quality, and fast-growing financial cohort, the report argues.

Prime and above women borrowers constitute 66 percent versus 60 percent of men (CY24E), and delinquencies are lower at 1.6 percent versus 2.2 percent (December 2024). Their average mutual fund folio size also grew from Rs 2.5 lakh to Rs 3 lakh, representing 18.4 percent versus men’s 11.6 percent rise (CY19 to CY24).

According to Juneja, "This imbalance is reinforced by who sells and who influences financial decisions, wherein men make up 71% of insurance advisors, appear in nearly 80% of testimonials on leading fintech platforms, and account for 14 of the top 15 finance YouTubers."

BFSI opportunity

The report notes that India’s roughly 75 million working women in the labour force as of FY25 represent a large, underserved opportunity for the banking, financial services, and insurance (BFSI) sector. By income, around 3.7 million are high earners (above Rs 25 lakh), 7.4 million are upper-middle income (Rs 10–20 lakh), 14.8 million earn Rs 5–10 lakh, 22.2 million earn Rs 2–5 lakh, and the largest group of about 25.9 million earns up to Rs 2 lakh a year.

Tailored financial solutions for women, with women-first product design and distribution, could unlock untapped potential for BFSI opportunities across investments, lending and insurance, the report argues.

The biggest prize is in investment, with AUM of around Rs 2,00,000 billion across mutual funds or SIPS, fixed deposits, stocks, and digital gold. Followed by lending with an AUM of about Rs 67,000 billion across credit cards and retail loans, while insurance can offer roughly Rs 17,000 billion across term, health, and general insurance.

“Women’s needs are also clear and often mismatched, as many seek flexibility and clarity but are offered rigid, long-term, lock-in heavy products. The strongest blueprint is already visible in community-led models like SHGs and initiatives such as Digital Sakhi, and the opportunity now is to reframe journeys around real-life goals and social validation,” said Juneja.