India's FinServ Industry Eyes Next Big Leap with Tailored Investment Advice

India's financial services sector is witnessing unprecedented growth, driven by increasing investor participation, digital transformation, and regulatory support. From mutual funds and banking to insurance and equity markets, companies are leveraging technology and collaboration to expand financial inclusion and provide customised investment solutions.

The Indian mutual fund industry, currently managing assets worth ₹70 lakh crore, is on track to reach ₹100 lakh crore in assets under management. Increased accessibility through mobile-based small-ticket investments has contributed to this rapid growth. Meanwhile, banks are aggressively reaching out to the underbanked, and insurers are witnessing strong momentum following regulatory nudges. The Pradhan Mantri Jeevan Jyoti Yojana (PMJJY), launched in 2015, has already covered over 200 million people, demonstrating the potential of technology-driven financial inclusion.

Financial services firms, traditionally dependent on face-to-face interactions, are now embracing a "phygital" approach—combining digital convenience with personal engagement. End-to-end digitisation has made financial products more accessible, and technology-enabled collaborations across industry segments are driving the next wave of expansion. Large banks have successfully implemented "anywhere services," enabling seamless transactions across locations.

Equity market participation has surged post-pandemic, with a growing number of young investors opening demat accounts. While less than 10% of Indians currently invest in the stock market, industry stakeholders are aiming for broader participation, with a long-term goal of reaching 50% penetration. Increased awareness, policy support, and technological interventions are expected to play a crucial role in achieving this target.

As digitisation nears saturation, financial service providers are now focusing on "mass customisation" of investment advice. The integration of artificial intelligence, data analytics, and industry collaboration is enabling firms to offer personalised financial solutions to individuals. Experts believe that this shift could create a virtuous cycle of long-term wealth creation, with equities, mutual funds, and insurance playing key roles.

A new wave of partnerships is emerging in the sector, with equity research and brokerage firms leveraging digital platforms to educate potential investors. Live market insights, investment opportunities, and interactive sessions in multiple languages are enabling greater participation. This collaboration between human expertise and technology is expected to significantly expand India's investor base in the coming years.

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