
As Internet goes beyond metro cities and moves to smartphones, India is gearing up for a big opportunity in financial services segment. According to a recent report by Facebook and KPMG, by the year 2022 mobile platforms are expected to influence 8 out of 10 credit card and insurance purchases, about 6 out of 10 personal loan purchases and around 7 out of 10 other loan purchases, which would create $658 billion sales opportunity for financial services brands in India.
The report, which is a part of the programme called Zero Friction Future by Facebook IQ, bring out the role mobile can play to increase the consumer purchase, when buying financial services in India. Zero Friction Future, is an initiative by Facebook to mitigate friction in consumer purchase journeys and unlock business growth with use of mobile.
When it comes to purchasing credit card in India, the report says, about 29 per cent consumers drop out due to friction, and nearly one-third of this friction is caused by media. Similarly, for availing insurance services, the dropout rate is 37 per cent and nearly half of this friction is caused by media; while in the loans category, about 32 per cent of consumers drop out due to friction, and nearly one-fourth of this friction is caused by media.
It also reveals that mobile-enabled purchase journeys are shorter than offline purchases by 22 per cent for credit cards, 17 per cent for insurance and 8 per cent for loan categories and mobile has the potential to reduce friction by 3 percentage points across the purchase journey for credit cards and personal and other loans and 5 percentage points for life insurance.
As per the report, mobile could help brands tap into a credit card transaction opportunity of $38 billion, insurance premium income opportunity of $70 billion and loans outstanding opportunity of $219 billion. Using smartphones, the brands can also increase efficiency in consumer acquisition cost as compared to traditional mediums by up to 21 per cent for credit cards and personal loans, 24 per cent for other loans, 31 per cent for life insurance and 29 per cent for other insurance, creating an overall $985 billion sales opportunity for brands, the report says.