According to Robocash Group analysts, the number of Google search requests about fintech and financial services has nearly doubled since 2020. The pandemic has bolstered the financial adeptness of the population in India, and consequently, its financial awareness.
Prior to the pandemic in 2019, financial literacy was estimated to be at 27% among the adult population aged 18-80. The first wave of the pandemic had rapidly changed the current realities and forced consumers to expand their knowledge. A sharp rise was observed in the May-September period of 2020. People in India are gradually becoming more involved with the topic, reaching a peak at the end of January 2022.
The analysts comment that the country still lacks in several areas: insufficient population income; 35% of urban population; low Internet penetration of 45%.
However, there are also positive factors that may significantly accelerate the development of financial literacy: well-developed financial infrastructure, a government-backed system of measures geared for improving financial literacy, and quick penetration of financial services (financial inclusion index went from 43.4 to 53.9 during the FY2020).
The aforementioned pre-pandemic 27% of financially literate Indians may be considered a starting point for the growth of financial literacy. If the identified trend is directly imposed upon this figure, it should grow to 38.5% by the end of 2022.
Robocash Group is a group of companies, which provides fintech services in Asia and Europe. Founded in 2013, the Group focuses on providing technological finance solutions for the underserved by the traditional banking system.
