Recently, J.P Morgan’s research shows that Indian financial technology companies have succeeded in capturing the heart of the country’s 23% wealthy elite, and that the future of India’s economy should be closer to the remaining middle and lower classes.
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J.P Morgan Research shows that the most potential middle and low-income people occupy 47% of the population, the market for these people have a very high development space.
The average income of India’s low-and middle-income population has increased from $2 a dayto $10 trillion.
The study also said that about 347 million of the people in Low-and middle-income groups are urban residents who have smartphones, are familiar with the Internet, and are economically independent, fond of convenience and willing to consume for good service.
Currently, India’s fintech companies are mostly “exclusive” businesses of wealthy techies in the front-line region, and 80% of the known middle and low income groups have no access to their services.
“Although there is an impassable gap between financial technology companies and investors and enterprises, the low and middle income groups offer considerable opportunities for the different types of stakeholders such as financial technology companies, investors, donors and enterprises.” ”
The middle class is more inclined to a convenient and convenient way of life than to consider the ability to pay.
They will also find ways to use electronic platforms for efficient financial services, including payment and transfer, credit products, insurance savings and investment.
However, the survey also stressed that the development of financial science and technology industry in this country has a great imbalance.
India has about 1500 financial technology companies, 82% of which have gathered in Delhi, Mumbai and Bangalore, the three major sites of investment.
Investment projects, payment and credit are most favored by investors, saving, insurance and the former there is no small gap. Overall, the top 10 financial technology companies had 75% of the investment assets, while 74% of the investment was flowing into the payment and credit sectors.
Including the India Insurance and Development agency IrDA and the Indian Securities and Exchange Commission SEBI, a group of regulators, a member of the Reserve Bank of India’s RBI panel of experts wrote in a recent paper, “At present, India still has 40% of the population has not handled banking, enjoy the services of banks, cash is full of people’s daily life, occupy their 87% of the daily life of the payment.” For the country’s financial-services technology start-ups, the situation means a huge, untapped market. In 2018, mobile phone usage is expected to rise from the current 53% to 64%, the internet penetration rate is also steadily rising, in all respects, the growth potential of Indian financial technology companies is not to be underestimated. ”
It is noteworthy that Mr Modi’s civilian financial plan has led to 11 billion of billions of dollars of savings, and India’s self-help groups have mobilized $2.5 billion trillion in 2017.
In addition, the micro-enterprise debt gap is expected to reach 46 billion of billions of dollars. These objective conditions have laid the foundation for developing the middle and low income group market.
However, financial technology companies have also encountered many difficulties in expanding the user base. “At an early stage, financial technology companies have been hit by bottlenecks in raising investment funds,” he said. Investors tend to focus on the unit economic benefits of investment, but the medium and low consumer markets do not seem to eat this set. ”