Page 35 - Banking Finance September 2024

ARTICLE

11%. Higher returns for equity oriented MFs albeit with Digital First Generation: India has 759 million active
higher risks. (accessing internet at least once a month) internet users
which is expected to grow to 900 million by 2025.
Exploring alternate sources of passive / active Internet platforms and groups like Influencers have proven
income partly induced by Covid pandemic: Covid to be enablers, setting consumers on the path to achieving
Pandemic has induced a new dimension of "uncertainty" their consumption needs and aspirations. Answers to any
in terms of employment, livelihoods and earnings. and every problem can be found on Google, WhatsApp
Consumers are looking at exploring side hustles or or now ChatGPT! (or so the young generation believes!)
alternate avenues of income that might help them tide over Consumers, on an average, follow at-least 2 -3 influencers
any future Covid like shocks. and spend significant amount of their time in watching
reels or shorts in various platforms. Thus finfluencers
Mobile and Internet Data penetration: Across most (influencers in financial services) hold significant sway
strata of society, mobile and data is no longer a part of over their followers and influence financial and investing
life but is "central" to life. behaviour.

Increased financial sensitization: Mass media Financial socialisation process: It is believed that
parents play a significant role in the formation of financial
campaigns like "Mutual fund sahi hai" has built a
attitudes and behaviour of children. In today's day and
saliency for MFs being the right alternative to traditional
age, with digital medium being the "go to" destination
saving products. Programs like FETP (Financial
for any and everything, the finfluencers play an equally
Education Training Program), FACT (Financial Awareness
important role in shaping investing behaviours.
and Consumer Training) by NCFE (National Centre for
Financial Education) for students and consumers has
There have been many measures for financial literacy and
contributed to increased financial education and
investor education taken by all the ecosystem partners
awareness.
viz National Centre for Financial Education (NCFE),
Securities and Exchange Board of India (SEBI), National
Easy availability /accessibility of digital apps and
Stock Exchange (NSE), Bombay Stock Exchange (BSE),
digital journeys: Riding on ubiquitous and low-cost
Financial Institutions and many more. Still, India's
access to internet, host of financial investing apps are
financial literacy is at 27%, as per the "Financial Literacy
available lowering entry barriers to financial markets and
and Inclusion" survey, 2019 conducted by the "National
making investing a "child's play"
Centre for Financial Education". The low financial
literacy ranks India 73rd amongst 144 countries
Behavioural Drivers according to the "Standard & Poor's Global Financial
Increased Risk appetite among younger generations: Literacy Survey". India has approx. 2000 odd financial
Making money from the market is one of the popular side planners or Registered Investment Advisors (RIAs). The
hustles, giving the consumers potential of making their growth of finfluencers and their impact on the retail
money work as hard (if not harder) as themselves. There participation is significant though unexplored.
is an increased risk taking demonstrated by young
investors. So, in summary, India is faced with a scenario of vibrant
economy, aspiring young adults, easy access to social
Rising Aspirations: Overall and in specific young adults media, financial apps with exposure to conspicuous
are not apologetic about conspicuous consumption. consumption and also of avenues to getting rich and
Exposure to social media, streaming of lavish weddings realising one's dreams and aspirations.
and awareness of lifestyles of public figures like Actors,
Sportspersons and Business people has left them yearning Considering the shortage of financial educators, planners,
for "more". there is no gainsaying the role of Finfluencers in being

32 | 2024 | SEPTEMBER | BANKING FINANCE