From financial participation to long-term wealth: Why financial literacy matters for women in India

A young woman starting her career in India today can open an investment account, buy a mutual fund, compare financial products, start a business, and ask AI about money—all from her phone.

This range of choices would have been unimaginable a generation ago. That is real progress. But greater choice brings greater responsibility. Decisions about investing, insurance, and retirement—once distant considerations—are now part of everyday financial life.

This raises an important question: Is financial capability growing as quickly as financial access? Global evidence suggests there is still a considerable gap

The financial literacy gap persists

A recent research from Allianz Research covering more than 8,000 consumers across eight European and the US offers a sobering answer. Across all markets, only 17% of respondents demonstrated high financial literacy. Among women, the figure was just 11%, compared with 24% for men. Gen Z women recorded the lowest result of any demographic group.

In India, a survey by the National Institute of Securities Markets found that 64% of the surveyed women cited lack of financial awareness and education as a barrier to investing. At the same time, 77% expressed interest in financial education.

That willingness to learn is an opportunity. Financial education can help convert growing interest in markets into informed, sustained participation.

From participation to wealth creation

Women’s participation in India’s formal financial system has grown significantly. Women now hold more than half of the country’s Pradhan Mantri Jan Dhan Yojana accounts, and their presence in investment markets is rising.

But participation is the beginning of the conversation, not the end. Financial literacy must go beyond budgeting and saving. As more women earn, invest, and own financial assets, understanding inflation, compounding, diversification, risk, protection, and retirement planning becomes essential.

This is ultimately about wealth creation. Saving is fundamental, but where and how savings are invested makes a meaningful difference over time. Informed choices affect retirement security, resilience during uncertainty, and the assets families build across generations.

For a country seeking to expand women’s economic participation, financial literacy is an economic issue—not simply a personal-finance one.

AI can inform. Judgement still matters

AI is changing how people access financial information. According to the survey conducted by Allianz Research, almost half of respondents were already using AI every week, with usage considerably higher among Gen Z. Yet greater use of AI did not correspond with higher financial literacy.

AI holds considerable promise. It can make financial information easier to find and understand, explain unfamiliar concepts, personalise learning, and help people ask questions they might not otherwise know to ask.

However, AI’s value depends on how users evaluate the information it provides. People still need the ability to assess risk, question assumptions, and recognise when professional advice is necessary. As AI becomes a more common source of financial information, these skills will matter more, not less.

Building financial capability for life

Financial capability is built over a lifetime and shaped by many institutions:

• Schools and universities can make financial education a practical life skill.

• Employers can support employees when financial decisions become significant—from entering the workforce to preparing for retirement.

• Financial institutions can make products easier to understand and help customers see the long-term implications of their choices.

• Technology can make education more accessible and relevant to individual needs.

We should also recognize that equal access alone may not close persistent gender gaps. Where differences in knowledge, confidence, or participation remain, targeted financial education can help.

A call to action

Occasions such as the recent International Literacy Day are an opportunity to broaden how we think about access and expertise. As Indians take greater responsibility for investing, protection, and retirement, knowing how to make sound financial decisions is becoming an essential economic capability.

India has made considerable progress in bringing more women into the formal financial system. The opportunity now is to ensure participation translates into lasting financial outcomes.

Access, literacy, and informed participation must advance together. Done well, this can help more women turn rising incomes and financial opportunity into stronger security, long-term wealth, and a greater stake in India’s prosperity.

(The author is Country Head – India, Allianz Services. Views are personal.)