DBS Bank, Crisil collaborate to decode women's financial habit

Decision trees describe the extent of women’s participation in financial and household decision-making, while financial goal setting understands how women delineate and prioritise their financial goals. Homing in examines where women save and invest, as well as how they do so.

India is a diverse country with a young, growing population, with women accounting for close to 49 per cent. Traditionally, however, their participation in the workforce and financial decision-making has been much lower than their numbers suggest. Ahead of International Women’s Day on March 8th, DBS Bank and Crisil have come together to launch an extensive survey to understand their actual preferences, priorities and behaviours in managing money.

The methodology involved 500 robust face-to-face quantitative interviews, with an additional 300 women reached through focused group discussions for qualitative insights. Nearly half, or 48 per cent, of the women surveyed are between the ages of 25 and 35, while 40 per cent fall into the age group of 36 to 45. The remaining 13 per cent are over 45 years old.

The income spectrum of the respondents varied, with 38 per cent classified as semi-affluent (earning between 10 and 25 lakhs per annum), 41 per cent as emerging affluent (earning between 26 and 40 lakhs), and 21 per cent as affluent (earning over 40 lakhs up to 55 lakhs). The survey had an equal split, with 50 per cent salaried individuals and the other half self-employed. Among the salaried respondents, the sectorial representation was led by the IT/ITeS sector at 36 per cent, followed by education at 13 per cent, healthcare/pharma at 9 per cent, consulting services at 5 per cent, and 4 per cent each from Infra, BFSI & fintech, with the remainder scattered across other sectors. In the self-employed group, fashion & apparel contributed a quarter of the respondents, with 10 per cent each comprising doctors and consultants, 7 per cent CA (CAP)s, 5 per cent from education, and the remaining 43 per cent from various other sectors.

The marital and family status of the respondents covered a wide range: 57 per cent were married with dependents, while at the other end of the spectrum, 11 per cent were unmarried without dependents. In between, a quarter of the respondents were married without dependents, while 7 per cent represented unmarried individuals with dependents.

The study was based on five fundamental pillars to gain nuanced insights into urban working women's financial habits and behaviors: decision trees, financial goal setting, homing in, banking choices, and digital footprint. The study is divided into three parts, with the first part released in January 2024.

Decision trees describe the extent of women’s participation in financial and household decision-making, while financial goal setting understands how women delineate and prioritise their financial goals. Homing in examines where women save and invest, as well as how they do so. Banking choices identify their day-to-day preferences in banking transactions, while the digital footprint assesses the digital banking choices made by women in India.

Some key insights from the published report include: 47 per cent of women make financial decisions on their own, with this number increasing to 65 per cent for women aged over 45 compared to 41 per cent in the 25 to 35 age bracket. According to the survey, affluence seems to influence decision-making, with 58 per cent of affluent women making their own financial decisions compared to 38 per cent in the semi-affluent category.

Additionally, the report highlights that financial literacy and access to resources are significant drivers of financial independence, as higher-paying jobs and exposure to global work culture set women apart. In Chennai, 72 per cent of women make financial decisions confidently, whereas this figure drops to 31 per cent in Coimbatore. Similarly, 65 per cent of women take control of their financial decisions in Delhi, but this dropped to 44 per cent in Gurugram.

Overall, salaried women tend to save more than their self-employed counterparts, with 54 per cent of salaried individuals saving more than 30 per cent of their income, compared to 49 per cent of the self-employed doing the same. The majority, 51 per cent, of them have their investments in fixed deposits, followed by 16 per cent in gold, 15 per cent in mutual funds, 10 per cent in real estate, and only 7 per cent in stocks, reflecting their risk aversion. Interestingly, 47 per cent of women seek advice and information from family members when making financial decisions, while 27 per cent lean towards professional help.

Supporting family ranks as the primary short-term goal for 20 per cent of the women, while an equal percentage consider children’s education a long-term priority. The presence of dependents plays a major role in investment behavior, with 43 per cent of married women with dependents investing conservatively (allocating 10-29 per cent of their income), while 25 per cent of married women without dependents choose to invest substantially more, allocating over half of their income.

Consistent income flows define home ownership or upgrades, with 24 per cent of salaried and 16 per cent of self-employed individuals prioritising this as a long-term goal, respectively. Additionally, 32 per cent of married women prioritise children’s education and healthcare needs, while 24 per cent of unmarried women place a higher premium on realising personal aspirations, including vacations and weddings.

(The author is a co-founder of “Wealocity”, a wealth management firm and

could be reached at knk

@wealocity.com)