Insight into Rural Women Entrepreneurs' Banking Preferences

Despite the digital revolution sweeping across India, a recent survey by DBS Bank India and Haqdarshak reveals that nearly 90% of rural women entrepreneurs still prefer in-person banking. This preference underscores the challenges and opportunities in enhancing digital financial literacy among rural populations.

Financial Behaviors and Savings Patterns

The survey, conducted across Madhya Pradesh, Maharashtra, and Rajasthan, found that a significant majority of rural women entrepreneurs save a portion of their income, with a notable preference for bank deposits over digital savings methods. This highlights a crucial area for financial education and the potential for digital banking growth.

Digital Banking Usage and Opportunities

While 99% of the respondents have a bank account, only 38% utilize digital banking for business transactions, primarily through UPI. This gap presents a significant opportunity for improving digital financial literacy and expanding digital banking services in rural areas.

Funding Sources and Business Expansion

Personal savings and loans from family and friends are the primary funding sources for these entrepreneurs. The survey also reveals a strong desire among rural women entrepreneurs for support in areas such as industry and government backing, digitization, business mentorship, and networking.

Commitment to Community Development

Focus group discussions highlighted a strong commitment among rural women entrepreneurs to community development, with many aspiring to create job opportunities in their villages. This reflects the critical role of women-owned businesses in local economies and the potential for broader economic impact.