Female customers spend 66% more with women Business Correspondents at retail stores: PayNearby & Grameen Report

In India, business correspondents (BCs) are crucial touchpoints to expanding banking & digital services in rural areas, with women BCs playing a particularly important role. According to a joint report released by PayNearby and Grameen Foundation for Social Impact, female BCs excel in engaging female customers, with their transaction values 66% higher than those handled by male agents. Women BCs also earn 24.4% more than their male counterparts while engaging with female customers, suggesting that female customers feel more comfortable conducting higher-value transactions with agents of the same gender, likely due to increased trust.

However, 60% of female BCs struggle to balance their professional and personal responsibilities. This highlights the need for systemic support and focused interventions for women BCs.

A joint report on Gender Gap in the Business Correspondent Industry, by PayNearby, India’s leading branchless banking network, and the Grameen Foundation for Social Impact (GFSI), a leading non-profit organization, highlights both the opportunities and barriers women encounter as they work towards financial independence through their BC operations.

The findings revealed that both men and women BCs are primarily motivated by financial independence and the desire to serve their communities. However, flexibility in work hours is a stronger motivator for women (45%) compared to men (38%). This finding suggests that women are more likely to seek roles that allow them to manage their household duties alongside their professional responsibilities. The data also showed that women BCs face significant challenges in balancing household duties with their professional roles, with 60% of women reporting this issue. Their struggle is further compounded by safety concerns and cultural barriers, which disproportionately affect women. The report reveals that 33% of women BCs cite safety issues while working in remote areas, and 35% face cultural and societal barriers.

The report also highlights the need for better financial assistance and professional development opportunities. While both genders seek financial support, 61% of men show a higher awareness for training and professional development opportunities while 47% of women cited the need for supportive policies. Around 50% of women are more likely to rely on family support and mentorship to overcome challenges, while men prefer external aids like training programs to overcome obstacles.

A key finding from the report is that improving management of business is a common priority for both genders, though men prioritize it more (70% vs. 59%). Confidence in computer and banking app skills is high across the board, with 91% of women and 96% of men feeling proficient—critical for effective BC performance. Men express a greater interest in enhancing technology skills (61%) and customer relationship management (50%). Notably, 69% of women and 61% of men plan to expand their BC businesses in the next 3-5 years, reflecting strong entrepreneurial ambitions.

Jayatri Dasgupta, CMO-PayNearby and Program Director-Digital Naari, said, “We have seen firsthand the transformative power of women BCs in bringing essential banking services to the last mile. This joint report serves as a critical evaluation of the gender gap within the industry and highlights actionable strategies to empower more women to succeed as BCs. By addressing these gaps and providing the right support, we can build a more inclusive financial ecosystem for all. We believe women BCs should receive fair recognition for their contributions, with clear and unbiased criteria for performance evaluation, helping mitigate gender biases and promote a more equitable professional environment.”

Bharati Joshi, CEO Grameen Foundation India (GFI) and Grameen Foundation for Social Impact (GFSI), said “The findings of this report highlight the untapped potential of women Business Correspondents in driving financial inclusion across underserved communities. While women BCs demonstrate remarkable resilience and economic impact, they face unique challenges, particularly in balancing household responsibilities with their professional roles. To fully unlock their potential, there is an urgent need for transforming the balance of power in households and communities, supportive policies, targeted financial assistance, and capacity-building programs.”

To enhance women’s participation in the BC sector, the report suggests several strategies that have been formulated in consultation with women BCs across the country. Targeted mentorship programs and networking events for women BCs can offer valuable guidance and peer support. In addition, tailored training programs should address gaps in customer care, financial product management, and technology, with a focus on cybersecurity. Moreover, increasing access to development resources, accessible online courses, and skill workshops is crucial for bridging professional development gaps. The report also highlights the need to include local community leaders at Panchayat level, for grooming and social recognition of women BCs, so that their overall acceptance and business development can be aided.

The findings of this report are derived from comprehensive survey data collected from 1,862 business correspondents across 12 Indian states. The study employs a mixed-method approach, integrating both qualitative and quantitative data. Qualitative insights were gathered through Focus Group Discussions (FGDs), in-depth interviews, and expert panels, while the quantitative component was based on a detailed survey conducted among business correspondents.