Continuing Potential   of  The  Financial  Sector in India Indicus  Analytics
Financial Services  are terribly under penetrated services in India Therein lies the opportunity for high growth
Rapidly Changing Landscape What was available in only Mumbai and Delhi a few years back is today commonplace in small town...
Rapidly Changing Landscape Financial organizations have only been able to penetrate larger cities and metros with a range ...
Informal instruments lead  by a long way. Gold in direct form (not the most efficient way) is second The ratios change  si...
Urban Middle Class is the main investing class Life Insurance is the  Only product with deep penetration
Assets Under Management While the growth  is impressive, it still works out to just Rs 3,200 per capita pa
Credit Card Penetration The base is firmly with Large cities. However, the growth has  already shifted to smaller cities
PO Savings <ul><li>Impressive amounts </li></ul><ul><li>invested  </li></ul><ul><li>Lack of opportunities </li></ul><ul><l...
Mostly under penetrated Very small pockets of high penetration 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 services in India Therein lies the opportunity for high growth
For query or placing orders on Indicus Products please contact Indicus Analytics Pvt. Ltd. 2nd Floor, Nehru House, 4 Bahad...
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Continuing Opportunities in the Indian Financial Sector

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Undoubtedly, India’s economic reforms have changed the way we work, live, consume and invest. And in sync with this, aspirations and expectations have also changed dramatically for many of us. With changing aspirations and greater choice in employment, consumption, and investment options we have become a far more mature economy. No doubt large gaps remain, the large numbers of the unbanked, the lack of adequate micro-finance options for the poor and the underprivileged, the inability of many to enter into the organized sector and stable employment are all unfulfilled gaps. But unlike in the past, today both private and public sector initiatives are being taken to find the right mix of technology, access, and costs, that can fulfill the demands of the masses.
What was available in only Mumbai and Delhi a few years back is today commonplace in small towns and villages in India. ATMs are one example. Credit card is another. Already mobile payment options have been introduced and are further being experimented with. Cash cards are also expanding rapidly. 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.
Admittedly, such advances in financial technologies have tended to benefit the better-off more than those at the bottom of the pyramid. The key problem is that most financial technologies in use today were developed in the West (and consequently are costly) and have been introduced into India almost as-is. It is difficult to profitably service the masses with those. But trials of new innovations are under-way. A team at IIT Chennai has developed a very low cost ATM that public sector banks are currently experimenting with. Many financial institutions are trying out different ways of running low cost micro-finance options. IT companies are trying out various low cost electronic payment alternatives not to mention computing options. Undoubtedly, many of these experiments will fail. But a few will succeed. And it is those innovations
that will change the lives of the masses, just as their predecessors have changed ours.

Published in: Economy & Finance, Business
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Continuing Opportunities in the Indian Financial Sector

  1. 1. Continuing Potential of The Financial Sector in India Indicus Analytics
  2. 2. Financial Services are terribly under penetrated services in India Therein lies the opportunity for high growth
  3. 3. Rapidly Changing Landscape What was available in only Mumbai and Delhi a few years back 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. <ul><li>Advances in technologies </li></ul><ul><li>have tended to benefit </li></ul><ul><li>the better-off </li></ul><ul><li>more than those at the </li></ul><ul><li>bottom of the pyramid </li></ul><ul><ul><li>developed in the West </li></ul></ul><ul><ul><li>introduced into India almost as-is </li></ul></ul><ul><ul><li>Difficult to profitably service the </li></ul></ul><ul><ul><li>masses </li></ul></ul><ul><li>Innovations under way are </li></ul><ul><li>likely to change the lives </li></ul><ul><li>of the masses </li></ul>
  4. 4. Rapidly Changing Landscape Financial 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 attainment and incomes of the masses greater surpluses to invest greater willingness to try out New services greater private sector activity Technology innovation Mainstays: savings bank deposits post office savings life insurance informal instruments Under penetrated: Mutual funds equity shares gold The promise of growth
  5. 5. Informal instruments lead by a long way. Gold in direct form (not the most efficient way) is second The ratios change significantly with educational levels Informal Instruments dominate
  6. 6. Urban Middle Class is the main investing class Life Insurance is the Only product with deep penetration
  7. 7. Assets Under Management While the growth is impressive, it still works out to just Rs 3,200 per capita pa
  8. 8. Credit Card Penetration The base is firmly with Large cities. However, the growth has already shifted to smaller cities
  9. 9. PO Savings <ul><li>Impressive amounts </li></ul><ul><li>invested </li></ul><ul><li>Lack of opportunities </li></ul><ul><li>Lack of awareness </li></ul>Indian Financial Scape 2008-09
  10. 10. Mostly under penetrated Very small pockets of high penetration Bank Credit Indian Financial Scape 2008-09
  11. 11. But the big growth % are from the Under penetrated pockets Bank Credit Indian Financial Scape 2008-09
  12. 12. Financial Services are terribly under penetrated services in India Therein lies the opportunity for high growth
  13. 13. For query or placing orders on Indicus Products please contact Indicus Analytics Pvt. Ltd. 2nd Floor, Nehru House, 4 Bahadur Shah Zafar Marg New Delhi- 110002. Phone: 91-11-42512400/01 E-mail: products@indicus.net www.indicus.net Related Indicus Products Market Skyline of India 2008-09 Indian Financial Scape 2008-09 District GDP of India
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