Access and usage of financial products in India: A gender gap analysis

Abstract

This paper examines the status and determinants of the gender gap in access and usage of financial products and services using 3000 sample of Findex survey data 2021 in India. The results provide evidence to support the gender gap in access and usage of financial services. Particularly they are prominent in access to Mobile Money Accounts (MMAs; 12.03%), debit card (16.27%), and credit card (4.91%). At the same time, a remarkable gender gap was also found in the usage of financial products, specifically in MMA savings (4.25%), deposits (11.52%), withdrawal from accounts (6.83%), debit cards (13.27%) and credit cards (3.94%) usage. Finally, this paper documented the gender gap in access and use of financial products explained by a lower level of education, income, employment, mobile phone ownership, and internet access. The findings suggest that increasing traditional and digital financial literacy and employment opportunity among women are essential. It is also recommended to expand internet connectivity and mobile devices to all socio-economic categories of women.