|
|
 |
|
Viewing report
|
|
|
|
Indian Retail Finance
VRL Publishing Ltd, Oct 2008
India is the next big market for retail financial services.
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 microfinance movement.
- Key segments explained and de-mystified, ranging from: the affluent, the female market, the unbanked, 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 India consumers are starting to feel the affects of high commodity prices and the fall-out from global economic uncertainty, GDP growth remains impressive and as one of the ‘BRIC’ countries, India 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% of the nation lived on approximately a dollar per person per day. By 2005 that proportion had been reduced to 54%, 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 ageing, this again will grow the market for all retail finance products.
Mortgages, in particular, will benefit as this population becomes of homebuying age. The mortgage market is currently under-penetrated, with the
value of mortgages representing just 6% of GDP.
Changing Attitudes to Debt and Consumer Finance 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 2 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%. 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 change than the past 25 years, and with just 59% of the Indian population reported to have a deposit account (compared to an average of over 85% 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 sector and private sector banks doing business in India – compared to only 60 10 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 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
Plus 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
About the Author
Kebbie Sebastian is a retail banking and payments professional whose experience spans the US, India, China and European markets. He has previously held senior executive positions with Bank of America and Paypal and started his career with Citibank in India.
Customers who bought this item also bought
Opportunities in Indian Banking Sector
Booming Indian Retail Banking Sector
Indian Banking Sector
Indian Retail Banking Sector Analysis (2006)
Retail Banking In India 2008
Indian Banking Sector Analysis (2006-2007)
Indian Banking Sector Forecast to 2012
Analyzing the Indian Retail Industry
Indian Retail Banking Industry: An Analysis
Indian Retail Banking - 2006
Booming Retail Sector in India
Retail Banking in India - The Comprehensive Industry Report
|
|
|
|
