Post on 25-May-2015
description
Continuing Potential
of The Financial Sector
in IndiaIndicus Analytics
Financial Services are terribly under penetrated
services in India
Therein lies the opportunity for high growth
Rapidly Changing LandscapeWhat was available in only Mumbai and Delhi a few yearsback is today commonplace in small towns and villages in India.
ATMs Credit card Mobile payment options have been introduced Cash cards
Good quality internet access has already spread beyond the major metros and with the introduction of broadband will be available in every nook and corner of the country.
Advances in technologies have tended to benefit the better-off more than those at the bottom of the pyramid
developed in the Westintroduced into India almost as-isDifficult to profitably service the masses
Innovations under way arelikely to change the livesof the masses
Rapidly Changing LandscapeFinancial organizations have only been able to penetrate larger cities and metros with a range of financial services. The better educated are
much more likely to try new instruments when offered
Rising educational attainmentand incomes of the massesgreater surpluses to invest greater willingness to try out New services
greater private sector activityTechnology innovation
Mainstays:savings bank depositspost office savingslife insuranceinformal instruments
Under penetrated:Mutual fundsequity sharesgold
The promiseof growth
Informal instruments lead by a long way.Gold in direct form (notthe most efficient way) issecond
The ratios change significantly with educational levels
Informal Instruments dominate
Urban Middle Class is the main investing class
Life Insurance is the Only product with deeppenetration
Assets Under Management
While the growth is impressive,it still works out to justRs 3,200 per capita pa
Credit Card Penetration
The base is firmly withLarge cities.However, the growth has already shifted to smallercities
PO Savings
Impressive amountsinvested -Lack of opportunities-Lack of awareness
Indian Financial Scape 2008-09
Mostly under penetratedVery small pockets of highpenetration
Bank Credit
Indian Financial Scape 2008-09
But the big growth %are from the Under penetrated pockets
Bank Credit
Indian Financial Scape 2008-09
Financial Services are terribly under penetrated
servicesin India
Therein lies the opportunity for high growth
For query or placing orders on Indicus Productsplease contact
Indicus Analytics Pvt. Ltd.2nd Floor, Nehru House,
4 Bahadur Shah Zafar MargNew Delhi- 110002.
Phone: 91-11-42512400/01E-mail: products@indicus.net
www.indicus.net
Related Indicus ProductsMarket Skyline of India 2008-09Indian Financial Scape 2008-09
District GDP of India