Go the full length on women’s financial empowerment

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insurance, improving their incomes and agency. Moreover, receiving payments into a bank account acts as a catalyst for the utilization of various financial services, raising women’s capacity to save, borrow and efficiently manage funds. The Global Findex Report 2021 has numerous examples of this from various countries.

It shows that among those who received digital payment in developing countries, 83% made a digital payment, 40% used their account for savings, and 40% accessed formal credit. In the case of India, direct benefit transfers under various government schemes into PMJDY accounts hold significant potential to improve women’s economic empowerment. For those in paid work, the practice of employers depositing wages directly into bank accounts not only encourages account holders to maintain their funds in these, it also facilitates their access to financial instruments offered by banks.

The report explains how this is achieved. Money that resides in an account is easier to preserve than cash held otherwise. Receiving payments into an account, especially when these flows can substantiate a regular income stream over time, eases the formal borrowing process.

Nonetheless, the report highlights that individuals, especially financially inexperienced women, may not fully harness the benefits of account ownership if they lack an understanding of how to optimize financial services and minimize associated risks. As an illustration of the challenge, consider the results of a survey conducted by Good Business Lab on financial services involving over 900 women employed in a garment factory in Karnataka. These women were engaged in formal salaried employment and received minimum wages as set by the government every month.