New Delhi, 6th September 2023: On International Literacy Day 2023, BANKIT, a crucial player in India’s financial landscape, unveiled some key insights into the state of financial literacy and inclusion in the country. BANKIT is a huge supporter of growth and development and believes that every sector of society deserves an equal opportunity to benefit from the development India is achieving. Hence, after a successful survey conducted with the Agents and customers on the current trends and industry dynamics along with crucial data available in the public domain, BANKIT sheds light on the pressing challenges and opportunities in the sector.
To gauge the efficacy of financial literacy awareness, BANKIT has categorized the Indian population into distinct age groups. About 35% of India’s workforce ranges from 18-24 years old and stands at a crucial juncture in their financial journey that actively requires knowledge to make informed financial decisions. Approximately 28.6% of the Indian population falls between 25-34 years old, representing individuals in early to mid-career phases who could benefit from enhanced financial acumen.
Another quarter, 25%, falls into the prime earning age group 35-44 years old, emphasizing the need for effective financial planning and savings strategies. Notably, 60% of Indians in the 45-54 age group are contemplating retirement, signifying the importance of retirement planning and the need for informed choices. As of 2021, about 10.1% of the Indian population is nearing retirement age. The number of people over 60 years old is expected to double by 2050.
To target particular areas, it is essential to understand the knowledge of financial literacy throughout various cities. Urban, suburban, and rural areas, as well as specific cities and regions, can all be considered when dividing the country into two parts. The services of BANKIT are available in all unbanked areas, towns, and regions, whether urban, suburban, or rural.
Women v/s Men
Analysis of the differences in gender knowledge of financial literacy might reveal important information about potential discrepancies. Currently 65% of men hold bank accounts compared to 55% of women. This division can be used to determine whether there are gender-specific knowledge gaps in finance and whether particular aspects of gender influence how well people understand financial ideas. Men are still given preference when it comes to attending school or college and learning new things. Conversely, women continue to be devalued in the educational system and are prohibited from attending high school or college.
Regional Cultural Factors
The analysis provides context for differences in financial literacy by considering regional cultural aspects. The maximum percentage of banked individuals are found in the West (Maharashtra). All Indian states, including the East, West, South, and North, offer BANKIT’s services. Every important information, new features, and advancements in BANKIT’s services are communicated to the people of respective states in their regional language.
“Understanding financial literacy and inclusion through various lenses of gender, age, culture, region, etc., provides a deep insight to the market,” says Amit Nigam, COO & Executive Officer of BANKIT. “It is surprising that only 30% of Indians have enough savings to cover an unexpected expense of up to Rs.50,000. With 1 in 10 Indians nearing retirement age, concentrated efforts to increase financial accessibility should be a priority. Our wide geographical reach, including unbanked areas, reflects our unwavering commitment towards increased financial inclusion. Similarly, we provide digital banking, financial, and payment services without gender bias. Additionally, BANKIT services are communicated in all kinds of regional languages, increasing financial literacy across the nation”.
Currently, BANKIT services can be availed in 29 states and 8 Union Territories with almost 1,29,000 BANKIT Agents across the country.