International Women's Day 2024: 5 key reasons why young women opt for digital financial products

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India has 87% fintech adoption rate – the highest in the world, 1.26 billion digital IDs, 658 million internet users, 30 million merchants who accept QR codes and the digital lending and insurance sectors are expected to grow to $350 billion and $222 billion respectively by 2025. (Barclays Rise Report) While women form 50% of the country’s population, financial and digital literacy of women is lowest, as per World Bank’s Global Findex Data.

The golden rule of money management – the 50-30-20 rule suggests that you save at least 20% of your income. Spend 50% on your needs such as groceries, utilities, healthcare, housing, etc and not more than 30% towards wants such as restaurants, movies, concerts, etc. Warren Buffet advises: Do not save what is left after spending but spend what is left after saving." Women are very disciplined savers. They are more likely to save regularly in SIPs or Recurring deposits. They are also very prudent in paying timely EMIs and have the lowest default rate.

Also Read: Three money lessons you can learn from these female entrepreneurs

What are micro financial products? Young women who have just entered the workforce or those working as interns on stipends or those doing part-time jobs to gain work experience or earn second income to support families – for them micro products are a great way to get started financially. When one opens a zero-balance savings account in 10 mins digitally or starts an SIP with 100 ₹or buys travel insurance on the go while buying travel tickets – she is consuming micro financial products made possible through fintech solutions and embedded finance technology.

Here are the reasons why young women would prefer micro digital financial products:

Speedy: Young women