Hello everyone,

Welcome to The Pattern, a weekly newsletter where I bring you the latest from the worlds of finance, economy, and technology. 

As the dust settles around the multitude of Women’s Day brand campaigns, I couldn’t help but wonder - with financial freedom being such an essential part of gender equality, what were India’s financial institutions doing to mark the day?

Safe to say, I fell into a rabbit hole of sorts - and it wasn’t long before I spotted a common theme - higher interest rates on deposits for women.

Public sector lender Indian Bank launched a particular 400-day fixed deposit that comes with higher interest rates for women. More specifically, regular women depositors will get an interest rate of  7.15 % , senior citizens women will get an interest rate of  7.65%  and super senior citizen women will get an interest rate of  7.90%.  More details and conditions  here.

In doing this, it has joined several other banks and NBFCs that offer similar schemes - for example, Punjab and Sindh Bank’s  PSB Grih Lakshmi Fixed Deposit Scheme  that offers a 6.90% interest rate for FDs opened by women online. Senior citizen women investors enjoy a rate of 7.40%.

A good move? Seems so. Will it make a real difference to women’s access to finance? I’m not so sure. 

These measures feel piecemeal at best when you consider the fact that from 2006-07 to 2020–21, the proportion of  total female employees  in the banking sector has barely increased. 

When it comes to  top posts , only 13 women are in the top positions of 12 PSBs, accounting for just 10.66% of 122 directors. This, even as more than one-third of such posts remain vacant.

Taken from: https://www.thehindubusinessline.com/opinion/banks-must-employ-more-women/article66592893.ece

You know what they say - representation matters - and we don’t have enough of it. I don’t always want to be the devil’s advocate, but I also don’t think we should be patting ourselves on the back for doing (sometimes less than) the bare minimum.

Let’s move on from banking executives and look at the other side of the spectrum, the ‘grassroots’.

In August last year, on the completion of 8 years of the Pradhan Mantri Jan Dhan Yojana, Nirmala Sitharaman remarked that  56 per cent  of the country’s then 46 crore Jan Dhan account holders were women.

But let's dig deeper, shall we?

A recent  report  that surveyed 1,150 women PMJDY account holders across rural areas in Shahjahanpur in Uttar Pradesh, and Muzaffarpur and Gaya in Bihar revealed that  2/3rd of them continued to depend on their husband's income. Only a minuscule number contribute to household earnings, and most admitted to a lack of agency and decision making power in the home.

But here's the real kicker for the PMJDY scheme - even the women who manage to save don't deposit their money into these accounts, with 41% preferring to keep cash at home.

So what are we missing?

The big picture, essentially.

Bank accounts and fixed deposits are all well and good - but they're akin to throwing a glass of water at a raging forest fire. Well intentioned, but dare I say, largely unhelpful. 

The key to making a real difference, lies in starting right from the beginning. This means doubling down on awareness programmes. Further encouraging group-based micro-financing initiatives. Ensuring women have access to the real, physical tools they need to access financial services (49% of the male adult population in India has a smartphone, as compared to only  26%  of the female population ). This needs a multi-stakeholder approach that brings together government bodies, financial institutions, and NGOs. A huge undertaking, but not impossible.

That's just scratching the surface of what can be done - here's where we in the financial industry can begin - by making workplaces friendlier to their needs. Creating an enabling environment. Building products that address their unique challenges (no, a pink credit card won't cut it).

And finally - by hiring more women in decision-making roles. Because who better to decide what's best for women than women themselves?

Phew - that's all from me this week. I'd love to hear what you think. If you liked this edition, forward it to your friends, peers, and colleagues. You can also connect with me on Twitter  here  and follow  FinBox on LinkedIn   to never miss any updates. 

Between the digits

• 20% - The percentage of MSMEs in India owned by women

• 4.4 percent - India’s gross domestic product (GDP) growth as it slowed to a three-quarter low in October-December

• 47% - The percentage by which India's FinTech funding fell in 2022

Closing with some reading recommendations, as always:

• 28% of India’s borrowers now women, have better risk profile than men, says CIBIL report

• India vs Bharat: Technology must bridge the great financial inclusion divide

• How India is bridging its digital gender gap amid its growth target

• Silicon Valley Bank’s foibles don’t threaten India’s financial stability

See you next week!

Cheers,

Mayank