[Report] Young India Series BFSI Report

YOUNG INDIA SERIES YOUNG INDIA SERIES –BFSI REPORT

Research Methodology

The purpose of this report is to examine BFSI chatters on the web, the key drivers of conversation around the market and Industry, causes of negativeand positive brand mentions, and identify key trends and mindset of people hosting these conversations.

Objectives

Our approachWe listened to conversations and collected the dataautomatically from a corpus of several million sites,Collection was done on the basis of requirement defined

Multilayered Refinement

•Million of web sourcesMulti-level iterations to buildq

by combinations of keywords. The data was then ranthrough a layer of text‐mining tool to remove noise, refinesentiment and refining themes.

Time Frame: Jan 1, 2014 to Jan 31, 2012Collection

Articles and comments were then evaluated by researchers

comprehensive and relevantqueries•Derived through removal ofirrelevant content such as adlinks, irrelevant postings etc.through a combination of

Overall Universe 2,08,338

Analysis

Articles and comments were then evaluated by researchersafter removing noise, there from assessing sentiment(negative, positive, neutral and ambivalent of the sampleselected) and structuring the information into themes.Which indulged manual as well as automated processes toderive qualitative and quantitative analyses of the resultsto identify the trends in discussions threads.

From the total relevantuniverse sample wasselected for analysis through

human analysis and textmining

Relevant Universe

yStratified Random Sampling –Data captured across alldates and social mediachannels, Analysis donethrough semi manual processwhich also involves

t l ti f lti t dSample

INDUSTRY – BFSIGEO – INDIA DURATION – 1st ‐ 31st Jan, 2014SOURCES – Twitter, Blogs, Forums, News & other Social Media Ch l extrapolation of multi tagged

tonality & themesAnalyzedChannels

SAMPLING – 10% random sampling

Young India – BFSI

It id i d t ’ f t li i th h d f th th f “ Its said every industry’s future lies in the hands of the youth of their country. Keeping this in mind here’s an attempt to

quantify what INDIA’s Youth Talking about BFSI as an industry“ ”BFSI

Relevant Universe

N= 15,000 (Sampling done further at 10%, n = 1,500)

Others105

Stocks465

Mutual Funds 420

Banking 180

Insurance330

2,08,338(JAN 2014)

Our Methodology

STEP 1: SELECT CRITERIA FOR THE STUDY

STEP 2: INDUSTRY SEGMENTATION & CATEGORIZATION

STEP 3: CATEGORY & SUB CATEGORY WISE STUDY CATEGORIZATION,

DEMOGRAPHIC BIFURCATION - AGE, GENDER etc

CATEGORY WISE SENTIMENT

InsuranceBankingMutual FundsSt k

1.CATEGORYa. SUBCATEGORY

+ve-veNeutral

INDUSTRY - BFSIGEO - INDIA DURATION - 1st-31st Jan,2014SOURCES T itt Bl Stocks

OthersNeutral

KEY INSIGHTSSOURCES – Twitter, Blogs, Forums, News & other Social Media Channels

THOUGHTBUZZ ANALYTICS

Key Discussions – BFSIOf the observed more than 30% of discussion were related to shares & stocks Almost every 3rd individual is either enquiring or suggesting about various Mutual Funds

Others

7%

OthersIncludes discussion around NSC, Post Office Savings, Bonds, VC, Lottery, Lucky Draw, Angel Investors

31%12%

7%StocksBanking

Inclusive of discussions related to Indian banking system, CASA a/c opening & promotions, IBPS, Credit Cards & Loans

Captured various conversation around stock quotes, exchange market conditions, experts tips & b lli h k d & f

22%InsuranceInsurance related discussions are

p , ,bullish market trends & forecasts

28% Mutual Fundsmostly either a promotional call complain, or an enquiry, or a claims settlement related discussion

Buzz related to MF’s, growth rate, SIP’sMF agents, policies & regulations, lock-i i d & t i t tin periods & return on investments

N= 1,500, 10% sample taken out of available data 15,000 random JAN’14

Key Age Groups – Bifurcation taken for the study

G t th 40 Y

Less than 30 Years

30-40 YearsGreater than 40 Years

26% of the observed24% of the observed

Less than 30 Years50% of the observed

M j it f th kMajority of them were interested in discussions related to mf’s, sip’s start-ups, VC funding's & A l i t

Majority of them were keen interested in stocks buzz & discussions related to short term investments

Majority of them initiated and participated in all kinds of insurance, stocks & mf’s discussions, many people of this age group were sharing investment tips & claims settlement issuesAngel investors claims settlement issues

N= 215, total age group data available out of the universe of 15,000 random data

Topic wise key interestPeople below the age group of 30 years were more interested in Mutual Funds, Bonds, Venture Capitals, Angel Investors etc.People falling between the 30 – 40 age group took more interest in stocks & shares related discussionsPeople Above 40 years were equally interested in Insurance MF’s & stocksPeople Above 40 years were equally interested in Insurance MF s & stocks

27%29%

Insurance Banking MF Stocks Others

22% 21%

26%27%

24%26%

21%

26%

20%

10%

15%

9%12%

13%

< 30 > 30 & < 40 > 40< 30 > 30 & < 40 > 40

N= 215, total age group data available out of the universe of 15,000 random data

Gender Analysis – Bifurcation taken for the study

Males were almost 2 times more active than females in posting BFSI related queries & suggestions

67% 33%

N= 3000, total gender available out of the universe of 15,000 random data

Top Category – Gender Bifurcation

Males were predominantly interested in various Stocks, Mutual funds & other investment related queries whereas Females took more interest in Banking & Insurance related discussions

5%4%Others

Female Male 67%33%

40%33%Stocks

25%

17%

23%

B ki

MF

18%

12%

23%

17%

Insurance

Banking

18%

N= 3000, total gender available out of the universe of 15,000 random data

Now, let’s look at BFSI as an overview (all age groups) & bifurcate the

categories into sub- segments to drill down further

Others105

Stocks465

Mutual Funds 420

Banking 180

Insurance330 420

N= 1,500 for all further analysis beyond this point (10% sample of 15,000 available universe JAN’14 data)

Top Discussions – Bifurcation taken for the study as per the Overall BFSI buzz

7%

Stocks Mutual Funds Insurance Banking Others

StocksMutual FundsInsurance

TOP CATEGORIES31%

12%

InsuranceBankingOthers (VCs, Angel Investors etc)28%

22%

OSMutual Others105

Stocks465

Mutual Funds 420

Banking180

Insurance330

Top Discussions – BFSI

Positive Negative Neutral

90%67% 72% 73% 72%

7% 16% 20% 18% 23%3%

17% 8% 9% 5%

7% 16%

Stocks Mutual Funds Insurance Banking Others

Almost 3 out of every 10 investors were interested in stocks news & posts Almost every third person was enquiring about Mutual funds, Majority of them are not satisfied with the current growth of their Mutual funds investment 2 of every 10 person have invested in either of Life, Health & General insuranceIndian Banking system discussions were mostly related to banking promotions & CASA a/c openings, Majority of people agreed that Indian banking system should be modified7 out of 100 people were more contented in unconventional investment instruments for short term profits 7 out of 100 people were more contented in unconventional investment instruments for short term profits

N= 1,500 10% sample of 15,000 available universe JAN’14 data

INSURANCE – Bifurcation taken as per the Buzz

Investment: Insurance as investment options

TOP CATEGORIES

InvestmentLife

Health7%

Money : money worth options/ monetary value for insurance segmentTax : Insurance as Tax saving optionGeneral : Vehicle insurance chatter Policy/Claims : Insurance chatter

Investment24%

Policy/Claims10%

Life 10%

around claims & policies (Life/Health Insurance were major chatter for claims)Life : Insurance chatter around life insuranceHealth : Insurance chatter around health insurance

Money17%

Tax16%

General16%

OSMutual

health insurance16%

Others105

StocksN 465

Mutual FundsN 420

Banking180

Insurance330

INSURANCE – Netizens perspective towards Insurance

hh


80%

59% 58%66% 71% 71% 78%

Stocks31%

Banking12%

Others7%

Stocks31%

Banking12%

Others7%

17%32% 35%

21% 14% 14% 17%

3%

9% 7%

13%15% 15% 5% Mutual

Funds

Insurance22%

Mutual Funds

Insurance22%

17% 14% 14% 17% 28%28%

N = 330

Around 20% of people discussing about insurance finds insurance as a investment instrument, Most of theirdiscussion were related to insurance investment & returns14% of the total people discussing about insurance were actually investing or enquiring about insuranceinvestment because of tax saving benefits General insurance related discussions were basically claims settlement related and new policy enquiryP li & Cl i l t d di i tl l i & ttl t l t d i Al t ll th t Policy & Claims related discussions were mostly complains & settlement related issue, Almost all the comments observed referred policies as complicated rules & regulations N= 1,500 10% sample of 15,000 available universe JAN’14 data

INSURANCE – Key Findings

Discussions pertaining to various types of Insurance investment, claims settlement related, tax saving benefits, experts suggestions & advice

Investment : Around 2 in 10 people discussing about Insurance were enquiring about various insurance policies from a secured investment standpointMoney : Adviser & Experts were suggesting various tips to save money through different insurance plansdifferent insurance plansTax : Tax saving policies, and various taxation conventions for insured investments on surrender before maturity were most discussed topicsGeneral Insurance : Top buzz were around SBI General Insurance recruitment, general insurance promotions & various vehicle insurance plansP li /Cl i 1 t f 10 l di i b t i ith Policy/Claims : 1 out of every 10 people discussing about insurance were either enquiring, suggesting or complaining about claims settlement & maturity. Mostly vehicle/ health insurance related claims saw a major –ve chatter as people sign up insurances without reading the terms & conditionsLife Insurance : Majority of people discussing about life insurance policies, j y p p g pmaturity & claims enquiries were above 40 age groupHealth Insurance : Most of the health insurance insured were unhappy with un-settled claims & hidden policies

BANKING – Bifurcation taken for the study

Credit Cards: Consumer banking credit

TOP CATEGORIESCredit Cards

12%Interestcard chatterBanking: Bank accounts & other online/offline consumer banking related chatterIBPS: Banking exam related chatterLoans: Home/Auto/Personal Loan related

Banking17%

Ibps

24%

Loans: Home/Auto/Personal Loan related chatterInterests: Rate of interest on various PF/FD etc related chatter

Ibps1%

Loan46%

OSMutual Others105

Stocks465

Mutual Funds420

Banking180

Insurance330

BANKING – Netizens perspective towards Indian Banking System

hh


Stocks31%

Banking12%

Others7%

Stocks31%

Banking12%

Others7%

76% 84% 87% 86% 90%76% 84% 87% 86% 90%

Mutual Funds

Insurance22%

Mutual Funds

Insurance22%

7% 4% 10% 5% 2%

3% 12% 3% 9% 8%7% 4% 10% 5% 2%

3% 12% 3% 9% 8%

28%28%4% 2%

Credit Cards Banking Ibps loan Interest

4% 2%

Credit Cards Banking Ibps loan Interest

Around 34% of the total banking discussions were related to loans, Most of the people were unhappy with Indian bank loan allotment policies

N = 180

pBanking regulations and conventional functioning was highly criticized, a lot of people were of the opinion to redefine banking norms for the advancement of the monetary transactionsMany students were enquiring and sharing their ideas to crack the exams for banking services3 out of every 100 credit card holder was not happy with their financial planning RBI’s decision to increase the Repo rate was highly criticized by Netizens


BANKING – Key Findings

Buzz around Indian banking systems, bank policies , products, offerings/promotions, common banking issues faced by Netizens across India

Credit cards: Discussion around credit card promotions, billing issues & salary savings were of major concernsBanking: Netizens showed their major concerns regarding conventional Indian banking System, Most of them were unhappy with conventional banking policies & complicated paper works many people wanted Indian banking to get more complicated paper works, many people wanted Indian banking to get more advance to make monetary transactions more smooth & easy, many buzz around Islamic banking were also observed IBPS: Many applicants of common banking entrance test were enquiring about IBPS exams & cracksLoan: Buzz around home loans, Interest free loans for farmers, education loans & vehicle loans, EMI, EMI calculations, promotions & pay back was observed most, Islamic banking sharia loan programs buzz was also the hot topic of discussion Interest: Netizens criticized RBI’s action of hike in repo rates, Many people were unhappy with hike in interest rate, Interest free loans of Islamic banks was a trending unhappy with hike in interest rate, Interest free loans of Islamic banks was a trending topic

MUTUAL FUNDS – Bifurcation taken for the study

Mutual Fund: MF discussion around high return investment tips/advice& comparing various growth

TOP CATEGORIESMutual fund3% SIP

3%Agent13% funds

SIP: Short term Investment discussions around small investorsGrowth Rate: Discussions related to rate of returnLock in: Enquiries for lock in period of various

Growth Rate24%

L k i

13%

Lock in: Enquiries for lock in period of various plansCommission: Buzz around hidden commission and chargesAgent: Over selling practice of agents

Lock in7%Commission

50%

OSMutual Others105

Stocks465

Mutual Funds420

Banking180

Insurance330

MUTUAL FUNDS – Investment instrument Netizens opinion

OthersOthers


Stocks31%

Banking12%

Others7%

Stocks31%

Banking12%

Others7%

78% 71% 72%

Mutual Funds

Insurance22%

Mutual Funds

Insurance22%

8%5% 21% 19%

82% 78%86% 83%

72%

28%28%

Most of the investors were mystified about Mutual Funds investments, Almost every second investor was confused

10% 17%8% 8% 9%

8% 6% 17%

Mutual fund SIP Growth Rate Lock in Commission AgentN = 420

Most of the investors were mystified about Mutual Funds investments, Almost every second investor was confused about their invested moneyA many investors were enquiring about SIP , Few financial advisors also recommended SIP to investorsInvestors were mostly concerned for their investment growth rate, Most of them were enquiring about the Mutual Funds growth calculationsA many cases were observed where major portion of the Mutual funds premiums were secretly charged as a commission leaving investors no clue about the deductions


MUTUAL FUNDS – Key Findings

Discussion around Mutual Funds queries & suggestions, SIP’s investment, short term growth funds, agents hidden commission & complicated policies

Mutual Funds : Majority of experts were posting high return investment tips/advice, Investors were enquiring & comparing various growth fundsSIP: Short term Investment discussions were mostly keen to small investors, many

i i i i i ipeople were enquiring about short time period investment to save their salary Growth Rate : Discussions related to high growth rate of return were keen to small investors. Many investors were enquiring for low risk high return plans & tips Lock In : Investors enquired for lock in period of various plans and products, Few complained about their advisors/agents for not disclosing plans lock in periodcomplained about their advisors/agents for not disclosing plans lock in periodCommission : Buzz around hidden commission and charges, Majority of people were not familiar with commission/charges deductions from their monthly premiums Agents : Many people were not happy with the over selling practice of agents, Many investors also mentioned that agents doesn’t disclose complete information about the products before selling themthe products before selling them

STOCKS – Bifurcation taken for the study

Shares : Chatter around stocks or share holdersNSC: Index news, top gainers & losers, Index historical

TOP CATEGORIESShares23%BSE

14%

Option6%

Debentures0%

MCX0%

SC: de e s, op ga e s & ose s, de s o ca trend, performance forecast discussionsCall: Discussions around when to call back a stockPut: Discussions around when to invest into a stockBSE: Conversation were about Index listings of the day , stock comparison, expert tipsNSE

Put15%

p p pOPTIONS : Conversation around hedging & minimizing risk of uncertainty in tradingDEBENTURES : Chatter around credit holdings in a particular company or an institutionMCX: Buzz around MCX auction plan for FTIL stake

i i i

23%

Call19%

OSMutual

reduction, commodity quotes & research studies

Others105

Stocks465

Mutual Funds420

Banking180

Insurance330

STOCKS – Indian Investors viewsPositive Negative Neutral

Others

86% 78%94% 97%

86% 87% 93%81%86% 78%

94% 97%86% 87% 93%

81%

Stocks31%

Banking12%

7%

10%22%

6% 3%14% 13% 7%

19%4%10%

22%6% 3%

14% 13% 7%19%4%

N 465

Mutual Funds28%

Insurance22%

Of the observed majority of people were interested in stocks & equities, Most of them shared the stock quotes & raised query on various stocks & exchange markets

N= 465

quotes & raised query on various stocks & exchange markets A lot of new investors were inquiring about derivatives and were seeking experts suggestions on call & put options Majority of share holders were suggesting first times to uphold their investments in equities for bullish market situationA lot of experts were of the opinion that Indian investors are blind folded and carry the least knowledge about the instrument they are investing in


STOCKS – Bifurcation taken for the study

Buzz led by news around stocks, expert tips & quotes, top gainers & losers, NSE & BSE index & MCX

Shares : 2 out of 10 people talking about stocks were either a share holder or an expert NSE : Index news, top gainers & losers, Index historical trend, performance forecast discussions were mostly discussedforecast discussions were mostly discussedBSE : top conversation were about Index listings of the day , stock comparison, expert tips & investment suggestions Call/ Put options: Many experts suggested investors to cover up their risk of investment though balanced call and put option tradingMCX : News around MCX to give action plan for FTIL stake reduction, commodity quotes & research studies led buzz were observed

OTHERS – Bifurcation taken for the study

Post office: Chatter around post office saving & News stating post office’s to be converted in to payment banksBonds: Ch tt d i t t f i ki d f

TOP CATEGORIESPost office6%

Bonds4%

Angel investors Bonds: Chatter around interests of various kinds of bonds, various enquiries, quotesVenture Capitalist: Chatter around startups & VC fundingCash Funds: Observed around unconventional investment practices like Cash Funds

VC33%

34%

pChit Funds: Observed around unconventional investment practices like Chit FundsLucky Draw: Observed around unconventional investment practices like Lucky DrawAngel Investors Buzz around Angel investors

Cash Funds8%

Chit funds9%

Lucky Draw6%

promotions, third party SME loan offerings, loan raising tips

Others105

Stocks465

Mutual Funds420

Banking180

Insurance330

OTHERS – Other Popular Investment tools

Others7%


Stocks31%

Banking12%

82% 75% 69%78%

94% 91%

66%

Mutual Funds

Insurance22%

18% 25% 29%17%

5% 8%

31%

2%

5%

1% 1%

3%

28%5% 8%

Post office Bonds VC Cash Funds Chit funds Lucky Draw Angel investors

Many people still trust the outlawed method of financial investments, Lots of people are comfortable with the same unconventional practice of earnings & short term investments like Chit Funds, Lucky Draw & short term

N = 105

p g ycash fundsIndian Post offices to enact as a payment banks encourages the interest of suburbs & rural investorsVenture Capitalists were the most concerned area of the people falling under 30 years of age groupA lot of new startups advocate their request through twitter for VC fundingMany small & medium investors still find the conventional financial tools more effective


OTHERS – Bifurcation taken for the study

Category is inclusive of conversation around unconventional financial systems, Also people were initiating & participating in VC funding & Angel y p p g p p g g ginvestment buzz

Post Office: News stating post office’s to be converted in to payment banks drove Netizens attention, Many secured investors admitted that post office savings are the best instrument safe and secured investmentsavings are the best instrument safe and secured investmentBonds: Investors were also interested in various kinds of bonds, various enquiries, quotes suggestions were observedVC funding: Majority of people falling under 30 age group were interested in VC funding, Many were seeking for advice & suggestions from experts g y g gg pA lot of conversation were observed around unconventional investment practices, Many people still follow the un-lawful short term investment practices, Majority of small investors still finds it easy and more profitable Angel Investors: Buzz around Angel investors promotions, third party SME loan offerings loan raising tips were more common among all others category offerings, loan raising tips were more common among all others category discussions

WHAT DO THE CORPORATES SAY?“CONSUMER BANKING” BRANDS ON SOCIAL MEDIA“CONSUMER BANKING” BRANDS ON SOCIAL MEDIA

BOB

26%15%

4% ICICI BankAxis Bank Key Findings:Indian banking still levy stiff paper-works right from ac opening to monetary right from ac opening to monetary transactions

Many buyers complains were observed stating no clue about loss of money in online payment

19%36% HDFC BankSBI Bank

In the era of E-commerce banking still requires complicated formalities for online monetary transactions

ATM withdrawal are still not free many

Majority of banking discussions were related to product promotion, product enquiry or issues. Moreover, Indian banking has to be more advance to convene the smooth &

ATM withdrawal are still not free, many people expressed their grievances as they donate several amount of money from their salaried ac only for drawing money from ATM

easy flow of money across the nation (especially small town wherein A cities can transfer funds to B Towns families without much paper work)

N= 552, Consumer Banking brands mentions in JAN’14

WHAT DO THE CORPORATES SAY?“INSURANCE BRANDS” ON SOCIAL MEDIA“INSURANCE BRANDS” ON SOCIAL MEDIA

AllianzApollo Munich

Aviva

5% 2%

1%0%

SBI General InsuranceAviva

Key Findings:Majority of investors are unaware of

i i ithe insurance policies

A many complains were observed affirming agents over selling practices

92%

practices

Majority of claims related issues were observed in the case of health & general insurance

Majority of discussions around Insurance was related to LIC India. Insurance policies should be made investors friendly and there should be minimum hi d i l i l i ttl t i

LIC

hindrance in resolving claims settlement issues specially Health & General Insurance

N= 3776, Insurance brand mentions in JAN’14

FINAL TAKEAWAYS

1 INSURANCE: INDIANs are unhappy with health insurance & were enquiring/ suggesting or complain about insurance claims settlements 1.BANKING: INDIANs want banking system to get more advance in terms of paper works and smooth money transactions (interbank transfer as well as refunds on ecommerce transactions)2 on ecommerce transactions)2.MUTUAL FUNDS: INDIANs like the idea of small investment a solution for salary savings & were enquiring about short time period investment to save their salary.3 g q g p y3.

4 STOCKS: ONLY serious players predominate. Hence most of the stocks discussions were initiated either by a shareholder or a stock expert & were neutral 4. y pin nature.

5 UNDER 30 AGE GROUP: YOUNG INDIANs were mostly interested in VC 5. funding, Many were seeking for advice & suggestions from experts.

Thank YouThank You

This report and the information contained there in are based on information from online social media and other publicly available data. ThoughtBuzzdoes not warrant the accuracy of such information nor is ThoughtBuzz responsible for the content and accuracy of such information. Advisoryinformation may be contained in the report. Any subsequent decisions made based on the data must be made after proper review and assessment ofthe impact of such information. In no event shall ThoughtBuzz be liable to you or your company for any lost profits, lost revenue, interest, goodwill,p g y y p y y p , , , g ,lost data, cost of procuring substitute services or for any indirect, incidental, special, or consequential damages of any kind, however arising, that arerelated to these terms, whether in contract, tort or negligence, or any legal theory.

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[Report] Young India Series BFSI Report

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