New Delhi [India], November 21 : Indian banks could tap into a USD 688 billion untapped financial opportunity by adopting gender-intelligent design practices, according to a new report by MicroSave Consulting (MSC) and the National Institute of Bank Management (NIBM).
The publication comes at a critical juncture for India's economy, as the continued underrepresentation of women across the financial ecosystem is estimated to cost the country USD 688 billion, impacting its ambition to become a USD 5 trillion economy.
While India has made strides in expanding access to financial services, active usage among women remains low, leaving one of the country's largest untapped market segments.
"Over the years, multiple actors have tried to mainstream gender into banking, but the results have been, at best, patchy. Gender-intelligent banking offers a systematic, operational approach to integrate gender within financial institutions; across business strategy, products and services, operations, and policy and governance," said Akhand Jyoti Tiwari, Senior Partner, MSC.
"If tapped right, gender-intelligent banking alone can contribute 10 per cent of India's USD 5 trillion economy goal," said Dr Partha Ray, NIBM Director.
With female labour force participation rising sharply from 23.3 per cent to 41.7 per cent over the past six years, the report says there is an immediate business opportunity for banks and financial institutions. The whitepaper identifies four key areas of opportunity.
In deposits, women hold 1 billion bank accounts, yet nearly 497 million remain inactive, and activating these accounts could generate an incremental USD 253 billion in deposits, providing a critical boost amid rising credit growth.
In credit, women hold only 23 per cent of total outstanding retail credit (USD 212 billion compared to men's USD 692 billion). With 110 million loan accounts unmet, this represents a USD 193.3 billion lending opportunity, with the average loan size for women at USD 1,712, compared to men at USD 2,825.
In investments, only 1.8 per cent of Indian women actively invest, leaving potential retail AUM growth from USD 235 billion to USD 477 billion, unlocking USD 242.3 billion.
In pensions, women account for 45 per cent of Atal Pension Yojana subscribers but accumulate USD 46,000-85,000 less than men due to career breaks and lower contributions, the report added.
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