Difference between revisions of "Innovative personal finance products demo prep"

Revision as of 00:03, 6 January 2007

India: Overview

Overall economy

Household credit

Household credit

Household credit

Household leverage

Household financial leverage

• This indicates a bias towards assets based leverage than leverage on incomes in India.
• Rising incomes in India thus indicates towards tremendous opportunities for loans based on 'income potential' on either side (a) asset creation side and (b) Liablity creation side. Also, fuelling of (a) will in parallel give rise to (b).

Demographic dividend

• India's population is extremely young
• 50% of the population is under the age of 25, while 2/3rd is under the age of 35
• Over the next several decades, India's young population will strengthen the workforce

India Population Pyramid - 2010

India Population Pyramid - 2020

India Population Pyramid - 2050

Education

• Literacy levels are extremely low in India
• Education is in high demand
• Public education system is broken and private education is extremely expensive

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Children in immaculate school uniforms leaving the most basic housing. Buying these uniforms must put immense strain on the family finances, but education is highly valued. The population is growing faster than schools can be built to accommodate them, so the schools work on a shift system.

Personal income

• In some areas of knowledge services, salaries in India are coming close to American salaries in Purchase-Power Parity (PPP) terms
• The top end of over 700,000 people out of India's population of over one billion is estimated to have individual liquid wealth of about $1,00,000 (Rs 44,13,000) which is likely to go up to $1.1 million by 2009. This represents a cumulative liquid wealth of $203 billion, estimated to go up to $322 billion by 2009. These are the findings of a recent study done by market research firm Synovate.

700,000 Indians have $100,000 annual income

Ideas

Loans

Trends

Aspirational society (society turning aspirational)

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Lack of public education

• Picture: Children in immaculate school uniform...
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Expensive weddings

Gold

Microfinance

Peer-to-peer banking

Kitty parties

Islamic banking

Ideas

Education loans

• Tie up with educational institutions INCLUDING primary schools

Wedding loans

Streamlining microfinance

Loans based on gold

Insurance

Trends

Aspirational society

• Picture: How many homes have a...
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No medical coverage

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Increasing savings rate

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Ideas

Insurance as a saving vehicle

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Rural Insurance - an opportunity or a risk?

Rural Insurance penetration is increasing

• Seasonal premium collection system in line with harvest season, with no lapse of policy in case of seasonal fluctuations (affecting crops) can be organized
• Distribution of agents can be ramped up by tying up with Fertilizer dealers, Tractor dealers etc.

Credit

Trends

Increasing savings rate

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Increasing purchasing power

Rural demand for credit

Remittances

COD (???)

Growth in retail

Mobile phone and technology penetration

Ideas

Debit cards

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Mobile ATM

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Credit cards linked to US accounts

• Credit cards in India based on credit-rating of NRI

COD for online shopping (???)

Retail store cards

Mobile phone credit cards