Digital Finance, Credit Gaps Limit Women’s Participation In Platform Economy: ILO-NCAER

New Delhi, Aug 25 (KNN) Despite near gender parity in basic bank-account ownership, women continue to lag men in digital financial skills and credit access, limiting their participation in India’s growing platform economy, according to an ILO-NCAER brief.

The report said digital financial inclusion is crucial for women’s access to platform work across ride-hailing, delivery, e-commerce, quick commerce and logistics, reported the Mint.

India’s platform workforce grew from 77 lakh in 2020 to 1.2 crore in FY25 and is projected to reach 2.35 crore by 2029-30, but women remain under-represented, accounting for less than 1 per cent of urban two-wheeler delivery drivers.

Gender Gap Persists In Digital Finance

Women’s bank account ownership rose from 43 per cent in 2014 to 89 per cent in 2024, nearly closing the gender gap with men. However, digital financial skills remain uneven, with only 25.2 per cent of women able to conduct online banking in 2022-23, compared with 47.1 per cent of men.

Only 18 per cent of women could search the internet, use email and conduct online banking, versus 30.1 per cent of men. The mobile money gap also remained wide in 2024, with account ownership at 14 per cent among women against 32 per cent among men.

Credit Access Remains A Major Constraint

The report said 52 per cent of women lacked the capital needed to enter platform work, compared with 40 per cent of men. Women accounted for only 22.9 per cent of outstanding bank credit to individuals in March 2023 and 18 per cent of loan value sanctioned by digital NBFCs.

It noted that financial products often overlook women’s income patterns and needs. Digital access also remains constrained by family control of devices and connectivity, accounts registered in others’ names, and concerns over fraud and cyberstalking.

Financial Inclusion Key To Platform Work

The report said financial inclusion for women entering platform work should go beyond loans to include start-up capital, savings, insurance and long-term financial products to build assets and economic security.

NCAER Director General Suresh Goyal said access to credit and mobility could expand women’s employment opportunities, while ILO Country Director Michiko Miyamoto stressed the need for digital financial inclusion to support income security, resilience and sustainable livelihoods.

(KNN Bureau)