Investing in her future: the rise of women-centric financial products and services

With the emergence of products and services specifically for women, there has been a marked change in the financing landscape over the past few years. This shift recognises the specific needs and problems women face–ranging from gender wage disparities to longer life expectancies. 

In India, banks are increasingly prioritising the creation of solutions that not only satisfy women’s needs but also enable women to become financially independent and secure. 

The need for women-centric financial products

Historically, women in India have lagged behind men in terms of financial inclusion. There are a number of factors contributing to this inequality, including the low rate of participation in the labour force, reduced control over financial assets, and limited access to finance training. But demand for personalised finance products is now growing as more women take up employment and become key decision makers at home.

The Global Banking Alliance for Women’s 2019 report indicates that women are more likely to be loyal to institutions offering services with a focus on their needs. To this end, banks and financial institutions have developed innovative solutions to ensure that women are not just part of the finance system but also play an active role in supporting their specific goals and life paths.

Types of women-focused financial products

Savings and investment plans

Numerous banks offer reserve funds accounts with preferential interest rates for women, empowering them to save more. Furthermore, investment plans tailored for women regularly incorporate alternatives that adjust with long-term objectives, such as saving for retirement or children's education,  recognising that women generally prioritise family welfare in their financial planning.

Insurance products

Several insurers have developed health and life insurance policies specifically for women, taking into account the different medical needs of women as well as their longer expected lives. These policies often cover critical illnesses prevalent among women, such as breast cancer and other gynaecological conditions, providing a safety net that addresses their specific health concerns.

Loans and credit facilities

In recognition of the role played by women in driving growth, finance institutions are increasingly offering loans with favourable terms and conditions to women entrepreneurs. To encourage women to start their own businesses, these loans often offer lower interest rates, longer repayment periods, and sometimes even seed capital.

Financial literacy programmes

Many organisations are beginning to implement educational programmes aimed at women, recognising that lack of financial literacy is one of the main obstacles to financial inclusion. These programmes are intended to help women learn the necessary skills for making sound financial decisions, which in turn will increase their ability to manage and gain wealth.

What more can be done?

While there is an increasing range of products and services specially designed for women, challenges still exist. Socioeconomic factors and traditionally gender roles often restrict access to such financial solutions. Broader social changes, including better education opportunities for girls and more effective support systems for women entrepreneurs are needed in order to ensure that these products have a real impact on empowering women.

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The impact of female-focused financial services

The benefits of developing financial products focused on women are not limited to individual women, they have a profound impact on families and communities as well. Women who have the financial means are more likely to spend on their children's education, health and nutrition, which in turn leads to better societal and economic results for generations to come.

The rise of female-focused financial products and services is a positive step towards gender equality in the financial sector. The full economic potential of half the population can be unlocked as more institutions recognise and respond to the unique needs of women. 

Investing in women’s financial empowerment provides a basis for a more inclusive and equitable economic future, ensuring that women have the means to succeed and prosper.

The author is the co-founder of Women on Wealth, a community dedicated to empowering women to take control of their finances.