Women entrepreneurs have been the key player of the developing economy, contributing significantly to its growth. Representation of women in senior leadership is a sure shot recipe for building a more equal industry and one that caters adequately to the needs of women customers.
According to Forbes research, organisations with at least 30% women in leadership roles are 12x more likely to be in the top 20% for financial performance.
Women score higher on emotional intelligence which makes them better communicators and mentors.
ETBFSI spoke to a few key lenders focusing on women business to understand how the women entrepreneurs are flaring in the industry:
Women in leadership are known to demonstrate more transformational leadership styles, leading to better employee engagement and commitment to the company mission.
“Their high emotional intelligence making them better communicators and mentors are great assets, particularly in the Fintech industry which is evolving at a fast pace. Often, women leaders tend to have a more holistic approach, considering a broad range of user needs and societal impacts,” said Hardika Shah, Founder and CEO of Kinara Capital.
Hardika Shah believed that fintech industry is currently grappling with is talent crunch as according to a leading organisational consulting firm, over 60% of fintech companies in India reported a shortage of skilled employees, across IT, engineering, and sales services. Encouraging more women to join at all levels including technology and leadership positions, especially as 43% of STEM graduates in India are women, will foster innovation and growth of the industry significantly.
Usha Murali, Chief Compliance & Risk Officer (CCRO) at Spice Money believed women leaders bring in a balanced perspective, holistic eye view of various matters.
“These two aspects are unique to women leaders because of the inherent need for women to imbibe these qualities in their everyday lives. Innovation and transformation in the economic landscape can be substantially impactful if these two aspects are factored,” she said.
A classic example of this would be the ‘mother of Indian Microfinance’, the late Smt. Vijayalakshmi Das, who made financial inclusion her life’s mission.
Mandakini Kumari, CPO, Vivriti Capital said the women leaders bring diversity to technology teams, fostering collaboration and generating a broader range of ideas.
“Their leadership not only transforms NBFCs, but also positively influences the broader economic landscape toward sustainability and inclusiveness,” she said.
Advice to aspiring women leaders in fintech and MSME space
Fintech is a burgeoning sector and can offer immense growth potential to women leaders. The sector is expected to generate revenue of $190 billion by 2030. Similarly, India has the second-largest MSME base in the world and the number of enterprises is expected to rise from the current 630 lakhs to 750 lakhs by FY23.
Sharing an advice, Hardika Shah, Founder and CEO of Kinara Capital said whether you are taking an entrepreneurial route or aspiring to be a leader in a corporate environment, my advice would be to follow the guiding principle “be the change you want to see in the world”.
“As women, we may face a lot of systemic bias at various points in our life, but we also bring a completely different and very valuable perspective to the table. Build the mental muscle to speak up and advocate for yourself and your business, as well as other women. Be confident in your abilities and don’t let anyone undermine your expertise or authority. Seeking out mentors who can guide you and above all surrounding yourself with those who support your growth can aid you in charting a successful career journey,” she said.
Usha Murali of Spice Money believed that in addition to the technical skills which are a given, loads of passion, self belief and focus are essential for success in this field.
Cultivating strong tech acumen, fostering adaptability to industry trends, and honing strategic decision-making skills are some of the pre-requisites suggested by Mandakini Kumari, CPO, Vivriti Capital.
“Embrace continuous learning to stay ahead in the dynamic landscape and prioritize effective communication to navigate diverse stakeholders. Build a network, seek mentorship, and be resilient in facing challenges. Finally, promote diversity and inclusion to contribute to a thriving and innovative financial technology ecosystem.”
Scaling impact of fintechs on economic transformation of Women-led MSMEs
Accelerating women in entrepreneurship is critical for the growth of the nation and we need to equip women entrepreneurs with adequate support to succeed. One of the most potent catalysts that can enable this shift is access to formal capital which can have a transformative impact on livelihoods and we have seen it happen first-hand with our HerVikas program, Hardika Shah said.
“The program offers women entrepreneurs collateral-free discounted business loans. We had pledged Rs 700 crores in disbursement and have completed more than 88% of our commitment with more than 6,200 business loans to women entrepreneurs,” she said.
Talking on the same lines, Usha Murali said at SpiceMoney, we propose to cover other key aspects like increasing awareness on the various products, hand-holding the entrepreneurs.
Mandakini Kumari said my vision for scaling the impact of our fintech company on the economic transformation of enterprises, particularly those led by women, is rooted in pioneering inclusive technology solutions. I am committed to forging strategic collaborations to craft tailored financial products, harnessing the power of data analytics for nuanced insights.
“I advocate for digital literacy initiatives and actively seek partnerships with organizations supporting women entrepreneurs.”
Gaurav Bhatnagar, Head, Seller Acquisition, Amazon India also shared the Fintech’s approach towards the women businesses saying, “Our commitment to empowering women entrepreneurs extends beyond social responsibility; it is a fundamental driver of innovation. We have millions of sellers on Amazon.in, encompassing diverse entities such as local businesses, traditional artisans, and women-led startups.”
“Amazon Saheli is a pioneering program that was launched in November 2017, aimed at empowering and enabling women entrepreneurs across the country to sell their products on the Amazon.in marketplace. As part of Amazon Saheli, we work with 60+ partners to positively impact over 18 lakh women entrepreneurs from urban and rural sectors. Currently, the Saheli program includes women entrepreneurs like artisans, self-help groups, housewives, etc. who leverage Amazon to showcase thousands of products across categories such as apparel, jewelry, groceries etc. to customers across India.”
