BANKBAZAAR

SAVINGS QUOTIENT
VOL III 2022

How India Saves

WOMEN MORE COMMITTED TO SAVE PG4

MUTUAL FUNDS THE FOUR KEY LIFE AND HEALTH

NOW LEAD REASONS WHY INSURANCE: MORE
FIXED DEPOSITS INDIANS SAVE NEEDS TO BE DONE
PG3 PG5 PG7
INDIA AND SAVINGS
AWARENESS VS. KNOWLEDGE
75%
We're back with another edition of Savings Quotient,
which is BankBazaar's annual survey report on how India
saves and invests.

RESPONDENTS HAVE Every year, we reach out to men and women aged
SAVINGS IN THEIR BANK between 22 and 45 all over India and ask them how they
save, what they are saving for, and how much progress
they have made so far.

69%
ARE SAVING FOR
This year, for the first time, more Indians said they are
saving through mutual funds than fixed or recurring
deposits — a minor gap which may expand over time.

EMERGENCIES Given the macroeconomic challenges, savings and

investments have reduced or remained the same for close
to 80% of the respondents.

43%
At the same time, the spectrum of investments is growing.
More people said they had invested in cryptocurrencies
than those who said they had invested in provident fund.
HAVE BOTH LIFE AND
HEALTH INSURANCE
More Indians are now aware of their options. But do they
understand the path they tread?

Author About BankBazaar.com Supported by global investors such as Experian,

Nanda Padmanabhan
AGM, Corporate Communications
nandap@bankbazaar.com
Eight Roads, Sequoia India, WSV, and Amazon,
BankBazaar.com is India’s largest fintech co- BankBazaar has been at the forefront of
branded credit card issuer and online platform for democratising finance in India by providing end

free credit score. It has a captive base of 50 million users with frictionless access to credit.

Editor registered users who use the platform for free

AR Hemant credit score tracking and in-depth personal finance The company reported an annualised revenue run
AVP, Communications content and comparison tools. rate of Rs. 170 crore in September 2022. Its
arhemant@bankbazaar.com revenue grew 85% Q2-onQ2 with EBITDA

Copy Editor
Malvika Singhal
Assistant Manager, Communications
malvika.singhal@bankbazaar.com
Research
64Inspired Consulting
Its range of co-branded credit cards with India’s profitability attributed to its co-brand model.
leading banks is driving the platform's rapid growth
Adhil Shetty, CEO, BankBazaar.com, said:
with more than half its customers now opting for
“BankBazaar has been focussed on three things:
BankBazaar's own co-branded products. The
great technology, customer focus, and the bottom-
company is on track to facilitate one million active
line. I am proud to say that we are one of the few
BankBazaar co-branded credit cards in force over
fintechs in the world to be growing rapidly and
the next couple of years.
profitably."

MONEY QUOTIENT 2022 1

THE FACES
BEHIND THE DATA
Our study surveyed 1675 respondents from 6 metros and 18+ Tier 2 cities of India. This year's
study covers working professionals aged between 22 and 45 years.

WOMEN 43% METROS 78%

MEN 57% NON-METROS 22%

SALARIED PROFESSIONALS

WHO
AGED 22-45
This segment forms the core of the
formal workforce in India and is the
primary consumer of all financial

ARE
products.

SALARY > 30K PER MONTH

Those who earn salaries in this range
have the monetary bandwidth to opt for

THEY?
a variety of financial products including
credit cards and loans.

DIGITALLY AWARE
They have shopped online or made a
digital transaction in the recent past.

EARLY JOBBERS
22-27 YEARS
Early Jobbers are the newest
entrants into the nation’s
workforce. They are the most
digitally savvy and receptive to
new means and technologies to
fulfil their needs.
AGE COHORTS
MONEYMOONERS
28-34 YEARS
Moneymooners have a few years
of work experience, and their
purchasing power is significantly
higher. This makes them high-
value customers for a range of
products such as cars, their own
homes and vacations abroad.
WEALTH WARRIORS
35-45 YEARS
Wealth Warriors are not
necessarily the most digitally
savvy, but their purchasing
power makes them a significant
target for higher-end goods and
services, especially those meant
for families and children.

MONEY QUOTIENT 2022 2

MUTUAL FUNDS > SAVINGS
WHERE INDIA SAVES
Savings Pattern
For the first time, mutual funds have
overtaken FDs as the most popular form of
investment. About 57% respondents had
mutual fund / SIPs running compared with
54% with FDs.
mutual funds compared with the Early
Jobbers (49%). MF investments were
highest in the East (67%), followed by
North (65%) and West (62%). South way
below with only 46% respondents having
MF investments.

The FDs were also more preferred by the
older age cohorts, with 62% of Wealth
Warriors holding FDs compared with 54%
Moneymooners 47% Early Jobbers. Wealth
Warriors (62%) and Moneymooners (59%)
were also investing more aggressively in
Investment in low-return products such as
endowment plans also remined high with
close to 46% respondents invested in
them. Interestingly, 50% men had invested
in traditional insurance plans compared to
41% women.

Savings Bank Account 75%

Mutual Funds / SIPs 57%

Fixed Deposits / Recurring Deposits 54%

Insurance (LIC/ULIP etc.) 46%

Stock Market 45%

Gold & Other Commodities 33%

Cryptocurrency 32%

Provident Fund (EPF/PPF) 31%

Government Securities 14%

New-age Savings Tools (P2P etc.) 11%

Forex 10%

Haven't Invested At All 1%

MONEY QUOTIENT 2022 3

THE GENDER SPLIT
WOMEN TAKE THE LEAD
Women are more actively saving then
usually perceived. More women hold
mutual fund investments compared with
men – almost 60% women have SIPs
running compared to 55% men.
About 54% women have FDs compared
with 53% men. The percentage of men,
however, investing directly in stocks is
much higher than women.
Only about 41% women have direct stocks
compared to about 48% men. But oddly,
the percentage of women in riskier
investments is also much higher. About
34% have crypto investments compared to
30% men.
About 16% have invested in new age
savings tools such as P2P compared to
about 7% men.

WHICH SAVINGS INSTRUMENTS DO WOMEN OWN?

Savings Bank Account 70.04%
Mutual Funds / SIPs 59.92%
Fixed Deposits / Recurring Deposits 54.25%
Insurance (LIC/ULIP etc.) 41.16%
Stock Market 40.89%
Gold & Other Commodities 34.82%
Cryptocurrency 34.28%
Provident Fund (EPF/PPF) 30.36%
New-age Savings Tools (P2P etc.) 16.19%
Government securities 13.9%
Forex 10.12%
Haven't Invested At All 1.21%

WHICH SAVINGS INSTRUMENTS DO MEN OWN?

Savings Bank Account 79.34%
Mutual Funds / SIPs 55.57%
Fixed Deposits / Recurring Deposits 53.64%
Insurance (LIC/ULIP etc.) 49.57%
Stock Market 48.07%
Gold & Other Commodities 31.69%
Provident Fund (EPF/PPF) 30.62%
Cryptocurrency 30.19%
Government securities 14.45%
Forex 9.85%
New-age Savings Tools (P2P etc.) 6.75%
Haven't Invested At All 1.39%

MONEY QUOTIENT 2022 4

RAINY DAY CONCERNS
WHY INDIANS SAVE
Post Covid, as savings reduced, saving for
emergencies such as hospitalisations was
the main reason to save across the board.
This was closely followed by children’s
well-being and inheritance. This was
highest in the North (64%) and lowest in
East (53%). Metros (57%) gave it lesser
weightage than non-metros (61%).
Retirement, interestingly came a distant
fourth. South cared the least about
retirement (35%), while West cared the
most (59%). Women are more aggressive
when it comes to retirement, with 60%
women saving towards their retirement
compared to 52% men.
However, the retirement goals tell a
different story.

75% 69%

59%

42% 47%
50%

25%

0%
Emergencies Retirement Children Income & Wealth

Early Jobbers Moneymooners Wealth Warriors Women Men

75%
75%
67% 68% 69% 70% 68%
61% 59%
56% 56%
52%
48% 47%
50% 46% 46%
43% 43%
42% 41%

32%

25%

0%
Emergencies Retirement Children Income & Wealth

MONEY QUOTIENT 2022 5

RETIREMENT PLANNING
60/100 SAVING TO RETIRE
More than 60% respondents said they had a
retirement corpus. This is strongly skewed in
favour of women, with 68% women working
towards a corpus compared with 54% men.

Data indicates that serious retirement saving

starts typically in late 20s-early 30s, though
Early Jobber women have the most grounded
retirement plans, with 55% looking at a corpus
of Rs.1Cr or more.

Overall, only 44% are working towards a corpus

of Rs.1Cr or more, and less then 16% are
targetting Rs.2Cr or more. The bulk of the
respondents (56%) have a target corpus of less
than Rs.1Cr, with 35% in the Rs.25-75L bracket.

About 48% of women have a target corpus of

Rs.1Cr or more compared with 40% men.
However, only 15% women have an average
target corpus size of Rs.2Cr or more compared
to 18% men.

CREDIT SCORE
INDIA GETTING STRONGER
Overall, 90% people know what credit score Women continue to proactively check their
was and 80% have checked their score at credit score, with 90% having checked their
least once. score compared to 88% men.

More than 90% men knew what credit score
was as against 72% of Early Jobber women.
This jumped up by 20% to 92% when it came
to Moneymooner and Wealth Warrior
women.
Women also have higher awareness, with
96% responding correctly to questions on
credit score, compared to 89% men.
Approximately 7% women saw their score
fall in the last year compared to 10% men.

MONEY QUOTIENT 2022 6

THE INSURANCE CONUNDRUM
MORE NEEDS TO BE DONE
Data shows that insurance penetration is very high in this segment. Only 3% have no health
or life insurance. About 43% have both health and life insurance and 39% have life
insurance without a health cover. The splits are pretty even across age groups.

Reading this with the high investment numbers in traditional endowment plans, it seems
plausible that most of these are not high-value pure term plans but a mix of term and
endowment plans. This points to a need for better understanding around insurance and its
place in one’s financial life.

WHICH INSURANCE PRODUCTS DO YOU OWN?

Early Jobbers Moneymooners Wealth Warriors Total

44%
43%
42%
41%
40%
39%
38% 38%

17%
16%
15% 15%

3% 3% 3%
2%

NEITHER LIFE NOR BOTH LIFE & HEALTH JUST HEALTH JUST LIFE
HEALTH INSURANCE INSURANCE INSURANCE INSURANCE

MONEY QUOTIENT 2022 7

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