By 2022, mobile platforms are expected to influence eight out of 10 credit card and insurance purchases, about six out of 10 personal loan purchases and around seven out of 10 other loan purchases, said the report, the fifth in the series under the Facebook’s “Zero Friction Future” programme.
“India could not be more ready for a digital revolution in financial services – with government interventions on one hand and growing consumer awareness on the other,” Pulkit Trivedi, Director, Facebook India, said on the launch of the report.
“As more and more Indians access the Internet on their mobile phones, there is a big opportunity for financial companies to create a powerful digital experience that is intuitive, more seamless and free of friction points for their customers,” Trivedi added.
The report, titled “Eliminating friction in financial services path to purchase”, suggests that in the credit cards category, nearly 30 per cent of consumers drop out due to friction (consumer drop-off from their purchase journey) and nearly one-third of this friction is caused by media.
As for the insurance category, some 37 per cent of consumers drop out due to friction, and nearly half of this friction is caused by the media while in the loans category, nearly 32 per cent of consumers drop out due to friction and nearly one-fourth of this friction is caused by the media.
As per the findings of the report, mobile-enabled purchase journeys are shorter than offline purchases by 22 per cent for credit cards, 17 per cent for insurance and 8 per cent for loan categories.
“With increased penetration of smartphones and Internet, the number of mobile first customers for the financial sector is rapidly increasing,” said Gayathri Parthasarathy, Head, Financial Services – Advisory, KPMG in India.
“Also, with app economy gaining prominence, digital is surely bringing a paradigm shift in the way financial sector engages and services its customers today,” Parthasarathy added.