“Club of Knowledge Hunters”

India, next big market for retail financial services

Posted by superstar23 on November 4, 2008

According to the ‘Indian Retail Finance’ report, India is the next big market for the retail financial services. The Indian market may have come a long way but things are just getting started. The next 10 years will see more changes..

RESEARCH AND Markets has announced the addition of the “Indian Retail Finance” report to their offering.

This report uses exclusive interviews plus a survey of third party data to present the critical success factors in creating an Indian retail financial operation, including: Who’s who among domestic and foreign players? What are they doing? What are their existing and future growth strategies? Plus in-depth case studies of the post office network and the micro-finance movement. Key segments explained and de-mystified, ranging from the affluent, the female market, the un-banked consumers in regional and rural markets.

Multi-channel distribution strategies, including branch, mobile, peer-to-peer, and self-service. Understanding domestic regulations. Best practice and market intelligence in collection strategy, cultural due diligence and talent management. The size and shape of the deposit, cards (prepaid and credit), wealth management, mortgage lending, personal lending, and remittances markets, where the opportunities lie, how these markets will change, issues to watch and key success strategies.

This report is essential business intelligence for anyone seriously considering how to profit from the growing Indian financial services sector. It’s hard not to get excited at the thought of India as the next big market for retail financial services. Although Indian consumers have started to feel the affects of high commodity prices and the fall-out from global economic uncertainty, gross domestic products (GDP) growth remains impressive and as one of the ’BRIC’ countries, which included Brazil, Russia, India and China, she is set to become the world’s third-largest economy by 2050. The financial services sector is expected to be a lynchpin of this growth along with the retail, information technology and telecom industries. The market for banking products is growing at an even faster rate.

An economy transformed — The rising elephant

In 1985, 93 per cent of the nation lived on approximately a dollar per person per day. By 2005, that proportion had been reduced to 54 per cent, or 431 million people lifted from poverty (more than the population of the United States or of Western Europe).

India’s population is the youngest in the world. Half of its roughly 1.2 billion people are below the age of 25. Over the next 20 years, the number of people in their prime working years will continue to grow in India. Unlike in some of the other BRIC nations, where the population is aging, this again will grow the market for all retail finance products. Mortgages, in particular, will benefit as this population becomes of home buying age. The mortgage market is currently under-penetrated, with the value of mortgages representing just six per cent of GDP.

Changing attitudes to debt and consumer finance and rising affluence has altered consumer attitudes and the approach of the urban consumer has shifted from ’debt averse’ to ’spend now, worry later’. Abundant employment opportunities have increased peoples’ confidence in their future earning power and with that, an appetite for spending that their parents would have indulged in only after a lifetime of careful saving.

The credit card market in India has seen a rapid boom from less than two million cards in the market before 2005 to 26 million cards in 2008. India is the second-fastest growing cards market in the Asia-Pacific region, with an annual growth rate of more than 30 per cent. It is predicted by the Indian Banks’ Association that the financial cards market will increase threefold within the next five years.

The Indian market may have come a long way but things are just getting started. The next 10 years will see more changes than the past 25 years, and with just 59 per cent of the Indian population reported to have a deposit account (compared to an average of over 85 per cent in Western Europe), there is a lot of territory yet to be staked out for both banks and their suppliers. Many financial services firms have entered the fray, and there are now close to 300 foreign, public and private sector banks doing business in India — compared to only 60 ten years ago.

The opportunity of the 21st century

On almost every metric that matters, India invariably tops it. However, such a considerable opportunity does not come without risks. As many foreign investors have discovered in recent years, India is not a business proposition for the faint-hearted or the uninformed.

This report provides a complete 360-degree perspective on the Indian financial services sector giving readers both critical insights into the market as it is currently structured, and an informed perspective on the likely direction of change in the medium term.

You’ll learn not just how the banking sector is structured and regulated, but how it is likely to change over the next two years. The report goes well beyond the usual business and economic analysis, also covering both the cultural and political dimensions of Indian culture.

Who should read this report?

Retail banking and consumer finance operations – Heads of of strategy, marketing, risk and business development – assessment of the prospects for success with an Indian operation. Wealth management and private banks – Heads of strategy, marketing, risk and business development – assistance in targeting affluent and high net worth individuals (HNWI) based in India.

Banking sector – Analysts, data and analysis that can be used to arrive at a more realistic assessment of the potential of the Indian retail financial market.

Anyone else in retail banking and financial services who wants to know more about the opportunities, challenges and possible pitfalls of extending retail financial services to India as a strategy for growth can avail the report.


2 Responses to “India, next big market for retail financial services”

  1. […] Opens Second Hypermarket in Vashi, Navi MumbaiOrganised retail players rethinking their strategyIndia, next big market for retail financial services Big Bazaar achieved new milestoneChild’s […]

  2. Absolutely right.This report is essential business intelligence for anyone seriously considering how to profit from the growing Indian financial services sector.I sure that India will be next big market for retail financial services.

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