Are women business correspondents unlocking rural India’s $1.5tn FinTech boom?

By Puja Sharma

In India, women business correspondents (BCs) are reshaping the rural financial landscape, bringing essential banking services to underserved communities and advancing financial technology in areas where traditional banking lacks reach. According to a joint report released by PayNearby and Grameen Foundation for Social Impact, female BCs excel in building trust, especially with female customers, who spend 66% more per transaction with female BCs than with their male counterparts. This trust advantage has made women BCs key players in expanding digital and financial inclusion across rural India.

With India’s FinTech sector growing at an annual rate of 20%, and digital payment transactions reaching $1.5 trillion in 2023, BCs—particularly women—are integral in fostering the adoption of these technologies in rural communities. Female BCs are especially valuable as they enable transactions, digital payments, and mobile banking for customers who might otherwise be excluded from the formal financial system. The report also reveals that female BCs earn 24.4% more than male BCs when serving women customers, indicating that women customers not only prefer but also trust female BCs for larger financial transactions.

Challenges in a growing FinTech landscape

Despite their impact, 60% of female BCs report difficulties balancing their professional and personal responsibilities. Flexible working hours, valued by 45% of women BCs (compared to 38% of men), are essential to allowing these women to manage household and professional duties. Safety concerns also weigh heavily, with 33% of female BCs reporting safety issues in remote locations, while 35% face cultural challenges that male BCs experience less frequently. As the FinTech industry continues to integrate deeper into rural India, policies promoting safety and cultural acceptance will be essential to supporting women BCs in their roles.

The need for targeted training is also evident. With high digital proficiency—91% of female BCs report confidence using banking apps and FinTech tools—female BCs are well-equipped but feel underserved in terms of professional development. Around 49% of women prefer hands-on training through workshops, while men lean more toward industry publications. Tailored programs in cybersecurity, digital literacy, and customer engagement are vital to further empowering these women with tech skills essential for rural FinTech services.

In a testament to their entrepreneurial spirit, 69% of female BCs have plans to scale their operations within the next 3-5 years, compared to 61% of male BCs. This growth mindset aligns with the government’s push to digitalise rural banking services and India’s booming FinTech industry, projected to reach a $350 billion market size by 2025. Women BCs play a critical role here, advancing adoption of digital banking in rural India, where over 65% of the population resides.

Empowering women for the future of FinTech

The report underscores the need for mentorship, networking, and community-based support to build an inclusive digital ecosystem. Partnerships with Panchayat leaders could strengthen local support for female BCs, while policy initiatives offering financial assistance and resources could encourage more women to join the sector.

With strategic support, women BCs could significantly expand FinTech’s reach, transforming India’s financial landscape from the ground up. These hidden heroes of rural India are proving that when given the tools and trust, they can accelerate FinTech’s mission to foster inclusive economic growth. By investing in these women, the industry can drive a more resilient, diverse, and digitally enabled financial ecosystem.