The Great Indian Wallet Study by Home Credit India Reveals Surging Confidence in Financial Well-Being; Two-Thirds of Consumers Report Saving and Investing

Hyderabad/New Delhi, May 22, 2024 — Home Credit India (HCIN), the local arm of a leading global consumer finance provider, has released the second edition of its annual consumer survey, The Great Indian Wallet Study: Consumer Behavior Towards Key Financial Aspects. The study highlights a significant boost in financial confidence among urban and semi-urban consumers across India.

Key Findings:

• Hyderabad Leads in Income and Savings: Hyderabad retains the top spot for urban lower-middle-class living with the highest personal monthly income at ₹44,000. The city boasts the highest incomes and savings rates among major cities, with 69% of respondents reporting increased savings in 2024.
• Discretionary Spending in Hyderabad: Residents of Hyderabad prioritize spending on local travel and sightseeing (35%), dining out (28%), movies (19%), fitness (6%), and OTT apps (10%).
• Financial Fraud Awareness: 41% of respondents in Hyderabad have encountered online financial frauds, with 27% falling victim and 37% receiving hoax calls or messages.
• Optimistic Income Outlook: Nationally, 74% of consumers expect their incomes to increase next year, with two-thirds anticipating they will save (66%) and invest (66%) more.
• Concerns Over UPI Credit: Some consumers are hesitant to use “Credit on UPI” due to fears of falling into debt (31%), overspending (28%), high interest rates (24%), and additional charges (7%). Moreover, 64% would discontinue using UPI if it becomes chargeable.

National Insights:

The study surveyed approximately 2,500 individuals aged 18-55 years across 17 cities, including Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, and others. Participants had annual incomes between ₹2 lakhs to ₹5 lakhs.

Ashish Tiwari, Chief Marketing Officer of Home Credit India, stated, “The Great Indian Wallet study serves as our compass, guiding us through the intricate landscape of consumer financial behavior each year. This year’s study reflects an upswing in the overall Financial Well-Being among urban and semi-urban consumers due to strong economic growth.”

Financial Well-Being Index:

• Income Growth: 52% of consumers reported an income increase over the past year, and 74% expect further increases next year.
• Regional Highlights: Hyderabad saw a rise in average personal monthly income to ₹44,000 from ₹42,000 in 2023, with 68% reporting increased savings. Despite rising fixed monthly expenses (up to ₹24,000 from ₹19,000 in 2023), Hyderabad maintains its status as the best city for urban lower-middle-class living.
• Spending Patterns: Major expenses include grocery (21%) and rent (21%), followed by children’s education (17%). Discretionary spending preferences include local travel (35%) and dining out (28%).

Consumer Sentiments:

• Savings Trends: 60% prioritize building a cash reserve for emergencies. Men (62%) save more than women (50%), with Gen Z (68%) leading savings efforts over Millennials (62%) and Gen X (53%).
• UPI Usage: 72% are current users, with the highest usage in Chennai (90%) and the lowest in Ahmedabad (58%). Despite interest in “Credit on UPI” (42%), concerns over charges and security persist.

Financial Fraud and Security:

• Awareness and Impact: 21% have been victims of financial fraud, with higher incidents reported in Delhi, Kolkata, Hyderabad, and Pune. Men, Gen Z, and consumers from the North region are more frequently targeted by fraudulent activities.
• Data Security: 19% store financial data on smartphones, and 24% share sensitive data with friends and family, indicating a need for better data security practices.

The Great Indian Wallet Study provides crucial insights into the financial behavior of urban and semi-urban consumers in India, highlighting trends in income, savings, spending, and security concerns. As consumers navigate the evolving financial landscape, the study underscores the importance of vigilance and informed decision-making.