The Great Indian Wallet’ Study By Home Credit India Reveals Surging Confidence In Financial Well-Being

The Great Indian Wallet Study by Home Credit India (HCIN) provides a comprehensive overview of the financial behavior and trends among urban and semi-urban consumers in India. Here are some key findings from the study:

Income and Financial Expectations:

• 74% of consumers expect their incomes to increase by the next year.
• 66% anticipate saving and investing more in the coming year.
• Hyderabad has the highest average personal monthly income at 44,000 INR.
• The average monthly income in 2024 is 35,000 INR for metros and 32,000 INR for Tier 1 & 2 cities.

Primary Expenses for Lower Middle-Class Indians:

• Grocery (26%) and rent (21%) are the largest expenses.
• Monthly expenses average 19,000 INR against an average income of 33,000 INR.

Recreational Activities:

• Popular activities include local city travel, sightseeing, eating out, and cinema.
• Chennai leads in spending on these activities, while Lucknow spends the least.

Usage of Credit on UPI:

• 42% foresee using credit on UPI, a feature enabling instant credit through UPI apps.
• Motivations include time-saving (53%) and ease of shopping (44%).
• Concerns include potential debt traps (31%), overspending (28%), higher interest rates (24%), and charges (7%).

UPI Service Usage:

• 64% would stop using UPI if it became chargeable.
• Currently, 72% use UPI, with the highest usage in Chennai (90%) and the lowest in Ahmedabad (58%).

Spending Patterns and Discretionary Spending:

• Chennai spends the most on local travel, dining out, and cinema.
• Bangalore and Kochi spend the most on children’s education.
• Dehradun spends the most on medical expenses.

Savings and Financial Security:

• 60% prioritize building cash reserves after fixed expenses.
• Men (62%) save more than women (50%).
• Gen Z (68%) leads in savings, followed by Millennials (62%) and Gen X (53%).
• 21% of consumers have experienced financial fraud, with higher incidents reported in Delhi, Kolkata, Hyderabad, and Pune.

Regional and Demographic Insights:

• East India exhibits higher savings rates (63%) compared to other regions.
• Metros lead in savings with 62%, followed by Tier 1 (61%) and Tier 2 cities (54%).
• Gen Z, men, and metro residents are more likely to use UPI and show interest in Credit on UPI.

These findings reflect a positive consumer sentiment driven by economic growth and rising incomes, while also highlighting concerns about financial security and the cautious adoption of new financial technologies.