Digital Financial Services for Low-Income Urban Women in India

Over the years tremendous progress in financial inclusion has been made, and a large volume of literature has captured the role of Digital Financial Services (DFS) in advancing inclusion. Moreover, the accelerated use of digital technologies during the COVID-19 pandemic has enabled the growth of DFS globally. Despite the rapid growth in the sector, certain segments of the population, particularly women, continue to face barriers to accessing and using DFS. Barriers such as cost, literacy, and social/gender norms, as well as concerns about data protection and fraud among others, hinder access and use of DFS for women. In this context, this project aims to understand barriers faced by women-owned Medium, Small, and Micro Enterprises (W-MSME) in using digital financial services. The project was particularly focused on consumer protection from the perspective of both the women users and service providers of DFS. In order to understand the consumer experience, the team conducted interviews with W-MSME in India. Additionally, the team also conducted interviews with fintech founders across three regions: India, Africa, and Latin America. Using the findings from the interviews, the team has mapped the women’s experience of the complaint journey and provided recommendations for fintech.