=== Overall economy ===
==== Household credit ====
[[Image:Household credit as % of GDP.jpg|thumb|center|600px|Household credit]]
[[Image:Household credit global trend.jpg|thumb|center|600px|Household credit]]
=== Personal income ===
* In some areas of knowledge services, salaries in India are [http://inhome.rediff.com/money/2007/jan/01sal.htm coming close to American salaries] in Purchase-Power Parity (PPP) terms
=== Personal income trends ===
* The top end of over 700,000 people out of India's population of over one billion is estimated to have individual [http://www.rediff.com/money/2007/jan/03wealth.htm liquid wealth of about $1,00,000] (Rs 44,13,000) which is likely to go up to $1.1 million by 2009. This represents a cumulative liquid wealth of $203 billion, estimated to go up to $322 billion by 2009. These are the findings of a recent study done by market research firm Synovate.
[[Image:PersFin 100000 dollars income.jpg|thumb|center|400px|700,000 Indians have $100,000 annual income]]
=== Ideas ===
==== Investing abroad ====
=== Trends ===
==== Aspirational society (society turning aspirational) ====
* Picture: How many homes have a....
* Text:
==== Lack of public education A consumption boom ==== * Picture: Children According to study by Bank of Baroda, India is riding a CAGR growth in immaculate school uniform...excess of 35% for the last 5 years in 'retail loans' category* TextDespite this, the penetration of credit products as a % of GDP is still very low* Reasons could be (a) credit aversion (b) no distinction between good and bad paymasters (c) propensity to save is high due to insecure healthcare and social security concerns. [[Image: Credit boom in India.jpg|thumb|center|600px|Consumption boom]]
==== Expensive weddings ====
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* [[Image:Indian weddings.jpg|thumb|center|600px|Wedding expenses]] * [[Image:Expensive weddings.jpg|thumb|center|600px|Wedding Insurance]] ==== Gold lifestyle==== * Jewellers in India give lose guarantees that upon return of the jewellery, value of the metal in jewellery adjusted for workmanship costs will be redeemed. This acts as a big incentive for people to invest in jewellery as principal amount is secure. However, there is no formal guarantee mechanism to ensure the contract. * This can be an opportunity for banks to step in, whereupon the banks can underwrite the value of the jewellery and assure full value upon jewellery redemption. Banks can extend loans to people to buy jewellery, whereby interest is charged differently for the value of the metal (lower interest rate) and higher for the loan against workmanship. [[Image:Jewellery finance.jpg|thumb|center|600px|Cheaper loans for jewellery]]
==== Microfinance ====
[[Image:PersFin Microfinance.jpeg|thumb|center|250px|Microfinance is a major trend in India]]
* 1.4 million microfinance groups in India
* Over 20 million members for microfinance groups
* According to [http://www.uncdf.org/english/microfinance/newsletter/pages/2005_06/news_india.php one estimate], 30 million non-agricultural enterprises and 50 million landless households in India collectively need approximately $30 billion credit annually
* Microfinance is growing in South India, which contrasts with the stagnation in Eastern, Central and North Eastern India
* Downside: Microfinance involves very high transaction costs given the small amounts of money involved for each loan, which necessitates high transaction costs
==== Peer-to-peer banking ==== * Paisa pay from ebay has empowered C2C payments* A similar concept can be used for C2C cash payments. * Here, a customer can pay cash to a approved vendor who is associated with a mobile telephone network. This vendor, in turn, for a fee, can credit the payment account of the 3rd party. The 3rd party, can then collect cash from the telephone company or ask the telephone company to credit his/her bank account. [[Image:Paisa pay by ebayIndia.jpg|thumb|center|600px|Ebay India]]
==== Kitty parties ====
* Kitties are being organized as chit funds
* People pay EMI's of small amounts, in a group, and then wait for purchase of a consumer product when their chance comes
[[Image:PersFin Kitty.jpg|thumb|center|600px|Kitty for consumption]]
==== Islamic banking ====
[[Image:Parasoli Finance.jpg|thumb|center|600px|Shariat stocks index]]
[[Image:Shariat finance.jpg|thumb|center|600px|Shariat finance]]
=== Ideas ===
==== Microsavings instruments ====
* Tie up with telephone firms to create microsaving pre-paid cards
* In such cards, 10% of the amount paid will get credited to the payees account as a saving
* Compounding of such savings after several years can yield high returns
==== Education loans ====
* Tie up with educational institutions INCLUDING Provide loans for primary schoolsand high school education, besides college education[[Image:PersFin School.jpg|thumb|center|300px|Loans for primary and high-school education]]
==== Wedding loans ====
* Provide cheap loans by tying up with wedding organizers, caterers etc. The loans get cheaper due to bulk discounts on prices offered by them.
==== Streamlining microfinance ====
==== Loans based on gold ====
* Already covered under trends
== Insurance ==
* Picture:
* Text:
==== Rural Insurance - an opportunity or a risk? ====
[[Image: Watson Wyatt.jpg|thumb|center|600px|Rural Insurance penetration is increasing]]
* Seasonal premium collection system in line with harvest season, with no lapse of policy in case of seasonal fluctuations (affecting crops) can be organized
* Distribution of agents can be ramped up by tying up with Fertilizer dealers, Tractor dealers etc.
== Credit ==
=== Trends ===
====Credit card penetration====
[[Image:Credit card per 1000.jpg|thumb|center|600px|Credit card penetration]]
==== Increasing savings rate ====
* Picture:Savings as percentage of GDP was 29.1% in FY 2004 and 25.9% in FY 2005* TextWith a strong GDP growth, rising salaries, and low social security, savings rate are likely to rise even further[[Image: Savings trend rate.jpg|thumb|center|600px|Savings rate]]
==== Increasing purchasing power ====
==== Rural demand for credit ====
* [http://epaper.timesofindia.com/Repository/ml.asp?Ref=VE9JQkcvMjAwNi8wOC8wOCNBcjAxNTAz&Mode=HTML&Locale=english-skin-custom Lack of access to savings mechanisms and credit is one of the biggest challenges for villagers in India.] * According to a World Bank study, in Andhra Pradesh, 59% of rural households lack access to deposit accounts and 79% don’t have borrowing facility from the organised financial sector. Bankers too complain that though the rural potential is huge, they don’t have enough knowledge about the rural customer.[[Image:PersFin Rural India.jpg|thumb|center|400px|Rural India needs $30 billion in credit]]
==== Remittances ====
<table align=center> <tr> <td>[[Image:PersFin WesternUnion.jpeg|thumb|center|150px|Reimbursements to India are growing]]</td> <td>[[Image:PersFin WesternUnion 2.jpeg|thumb|center|400px|[http://timesofindia.indiatimes.com/NEWS/India/Trillion-dollar_investment_hope_spurs_govt_into_action/articleshow/889333.cms India receives $23 billion a year in foreign remittances]]]</td></tr></table>* [http://timesofindia.indiatimes.com/NEWS/India/Trillion-dollar_investment_hope_spurs_govt_into_action/articleshow/889333.cms India receives $23 billion a year in foreign remittances]
==== COD (???)====
==== Growth in retail ====
==== Mobile phones ====* Mobile phone and technology penetration usage is exploding in India with subscriber numbers growing by several percentage points ''each month''[[Image:PersFin Cell Phone Numbers.jpg|thumb|center|450px|140 million cell phone users in India]] ==== Payments through SMS ==== [[Image:Payments through SMS.jpg|thumb|center|500px|Payments made through SMS - Paymate]]
=== Ideas ===
==== Debit cards ====* Picture:* Text: Linked to checking accounts
==== Mobile ATM ====
* PictureInnovative concepts, such as a [http://epaper.timesofindia.com/Repository/ml.asp?Ref=VE9JQkcvMjAwNi8wOC8wOCNBcjAxNTAz&Mode=HTML&Locale=english-skin-custom mobile ATM machine] are being tried out at the moment.* Text[[Image:PersFin Rural ATM.jpg|thumb|center|400px|[http://epaper.timesofindia.com/Repository/ml.asp?Ref=VE9JQkcvMjAwNi8wOC8wOCNBcjAxNTAz&Mode=HTML&Locale=english-skin-custom State Bank of India/Microsoft experiment for rural ATM was tested with 20,000 villagers in 5 villages]]]
==== Credit cards linked to US accounts ====
* Credit cards for family members in India based on linked to credit-rating of NRINon-Resident Indian family member (in the US or elsewhere)* [[Image:PersFin Credit Card India.jpg|thumb|center|350px|Credit cards in India based on international family member's credit rating]]
==== COD for online shopping (???) ====
==== Mobile phone credit cards ====
* Sony's [http://www.sony.net/Products/felica/csy/jre.html Felica] system combines mobile phones with credit card style payment capabilities
* With 140 million cell phones, but less than half as many credit cards, cell phones offer a great possibility for improving credit-card penetration in India
[[Image:PersFin Mobile phone credit card.jpg|thumb|center|400px|Mobile phone used as credit card]]