YES BANK fuels India's financial landscapes through its affluent customer propositions
A report released in February 2024 by Goldman Sachs on ‘Affluent India’ explores the changing dynamism and exponential growth of India as an economic powerhouse. The report highlights a growth of 12% CAGR between 2019 to 2023 of the affluent class in India. Their numbers have surged from 24 million in 2015 to 60 million in 2023, with projections to reach 100 million by 2027. This trend is also visible when we see the increase in the total number of credit cards issued in India, which has doubled over the past four years, with spending on credit cards rising 2.5 times.
This rapid growth reflects India's dynamic economic landscape. It has risen to the position of the fifth-largest economy in the world a $3.4 trillion GDP with the Central Bank forecasting a 7% growth rate in FY25. This economic ascent is driven by a resilient services sector, significant foreign direct investment, and the emergence of India as a global manufacturing hub.
The emergence of new economic frontiers is spurring the (significant growth) of an affluent consumer cohort or High Net-worth Individuals (HNIs). Once limited to traditional business magnates and old money, the next phase of growth in the affluent segment in India will be driven by diverse group of tech entrepreneurs, startup founders, social media influencers, and internet millionaires. –
This burgeoning affluent class is characterised by a penchant for exclusivity and discretionary spending, which includes concierge services, gourmet dining, bespoke travel experiences. These individuals demand tailored financial services that match their modern, dynamic lifestyles. They seek seamless digital banking experiences, comprehensive wealth management, and investment opportunities that align with their sophisticated tastes.
In recent years, Indian banks have navigated global macroeconomic changes and interest rate volatility, while ensuring to deliver strong financial returns. Recognising their strategic position, they have leveraged the opportunities presented by the driving affluent cohorts and curated exclusive programmes.