Fintechs in India cater mostly to the affluent, huge potential in lower middle class: J P Morgan
By Gayatri Nayak
Fintech companies have succeeded catering to only 23%of the elite and affluent section of the Indian economy while a huge section still remain untapped. A lot of potential in the lower and middle income segment comprising 47% of the population remain a potential market, according to a study supported by JP Morgan.
Fintechs have an opportunity to cater to the lower middle income or LMI segment with an income ranging from $ 2 to $ 10 a day and are about 600 million in number. Of this 347 million can be successfully tapped and individuals in this segment are mostly urban, smart phone and internet savvy, financially independent and prefers convenience and willing to pay for the services, a study supported by American bank J P Morgan said.
Currently, most Fintechs serve the affluent, tech literate customers in Tier I geographies, leaving over 80% of the addressable lower and middle income group untapped.
Photo courtesy of Meena Kadri.