Tuesday, February 27, 2024

Home Credit India Survey Reveals Rapid Adoption Of Technology Among Indian women For Credit Needs

For future credit needs, more women (59%) said they would prefer to complete their loan journey through online medium than men (49%)

Both women (77%) and men (79%) are almost at par when it comes to optimism about continued adoption of digital lending services due to internet & data revolution

73% women consider online loans to be more convenient compared to offline channels, almost same as Men (74%)

21% women said they understand about the usage of their personal data by loan companies

In celebration of International Women's Day, and in line with the UN's theme of 'Invest in women: Accelerate progress', Home Credit India, a local arm of the leading global consumer finance provider, reaffirmed its commitment to promoting financial inclusion and gender equality through responsible and digital-led financial services, ensuring access to affordable credit.

In India, women have traditionally faced barriers when accessing financial services, but this seems to be changing in the last few years. In its recent survey ‘How India Borrows 2023’, Home Credit India noticed that women in India are increasingly adopting technology and becoming active participants in the country’s financial ecosystem. The survey showed that women borrowers (31%) are on par with men (32%) when it comes to accessing credit through online mediums such as mobile apps. Additionally, 59% of women respondents in 2023 prefer to complete loan process through online platforms via mobile apps, highlighting a strong preference for convenience and accessibility. In 2022, the preference for digital loans among women was at 49%.

The survey also highlighted the growing acceptance of the digitalization of financial services. Women borrowers have today become much more comfortable with mobile banking, net banking, payment wallets and online shopping; and require limited guidance unlike in the past. According to the survey, women borrowers showed a preference for mobile banking (47%) over internet banking (38%) and 50% expressed that chatbot services were easy to use.

In line with the digital transition, 73% of women borrowers considered online loans to be more convenient compared to offline channels. WhatsApp emerged as the new digital channel for loans, with 45% of women borrowers having received loan messages on WhatsApp. However, only 23% women borrowers considered loan offers received on WhatsApp as trustworthy.

The survey showed that more than 50% of women were optimistic about the growth of fintech due to the rising number of digital lending companies in the ecosystem.

In terms of digital literacy, urban and rural women are looking for financial lessons and management guidance more than ever now. 32% of women borrowers said they would like a reputed organization to educate them about finance related tasks over the internet.

A major concern noticed among the women borrowers was the use of personal information by loan companies. When it came to data privacy-related matters, 44% women borrowers were more concerned about their personal data being collected by lending apps. The survey further indicated that only 21% women borrowers understand the data privacy rules and 46% felt the need of transparent communication by lending apps/companies on the usage of their personal data.

Speaking on the findings, Ashish Tiwari, Chief Marketing Officer, Home Credit India, said, "The narrowing of the gender gap in financial freedom and access to financial services for women is a positive trend that reflects progress towards gender equality. This trend also suggests that efforts to promote financial inclusion and gender equality in the financial sector are making a difference. Increased access to financial services can empower women economically, enabling them to save, invest, start their own business, and have greater control over their financial futures. Our commitment lies in prioritizing the fulfillment of unmet credit needs of our customers and contributing to a more inclusive financial ecosystem that empowers people and communities, promotes financial inclusion, provides financial stability, and supports the nation's socio-economic growth.”

In line with this commitment, we also have a project Saksham under which Home Credit India in collaboration with an NGO impart basic personal finance skills to thousands of marginalized women and girls across India. By reaching out to marginalized communities pan-India, Saksham exemplifies our dedication to fostering inclusive growth and empowerment, aligning with our broader mission of contributing to a more equitable and prosperous society."

The How India Borrows 2023 survey was conducted across 17 cities including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad, Lucknow, Jaipur, Bhopal, Patna, Ranchi, Chandigarh, Ludhiana, Kochi, and Dehradun. The sample size was approx. 1842 borrowers in the age group of 18-55 years, with an average income of Rs. 31,000 per month.

About Home Credit India:

Home Credit India Finance Pvt. Ltd. is a local arm of the international consumer finance provider Home Credit International with operations spanning Europe and Asia. The company is committed to drive credit penetration and financial inclusion in India by offering wide financial solutions that are simple, transparent, and accessible to all. Home Credit India has an employee base of ~5000 and has been consistently expanding operations since its entry in 2012, with its operations spread over 625 cities across India. The company has a strong network of around 53,000 points-of-sale (PoS) and is growing with a customer base of more than 16 million customers, driven by Pan-India expansion across major markets, a range of diversified and innovative products backed by superior customer experience.

As a responsible consumer lender, financial literacy is one of the main ESG pillars for Home Credit India and are working on it by promoting financial and digital literacy to drive a responsible borrowing culture in the wider society. As part of financial literacy initiatives, Home Credit India has engaged with over 3 million people through their Paise Ki Paathshala microsite, blogs and social media campaigns. Home Credit had also started a financial literacy CSR initiative – Saksham in 2022, to impart basic personal finance skills in partnership with a national NGO – Indian Development Foundation, targeting 30,000 marginalised women & girls pan-India.

For more information, visit www.homecredit.co.in

No comments:

Total Pageviews