Bait the young for biz growth, banks told

Bait the young for biz growth, banks told

Understanding their needs and requirements provides big opportunity, says RBI

Reserve Bank of India Deputy Governor Subir Gokarn. pti

Delivering his address at the banking conference ‘Bancon 2011’ organised by Indian Banks’ Association and Indian Overseas Bank here, he said, understanding the needs of customers and their requirements was an opportunity for banks. “It not only helps to know your customer but also to grow with your customer”, he said. Stressing that people in their late 20s and early 30s and even in mid-thirties, have a consumption need, investment need and security needs. this was really a size of an opportunity for banks, he said.

“Bringing knowledge and understanding the customer is a very big opportunity (for banks)”, he said. Giving some statistics he said there would be close to 400 million people in the 0-15 age groupo..”, he said.

Besides, he said along with the younger population, the number of senior citizens would also grow and by 2020 which was expected to be around 100 million over the age of 60years.

Stating that 42 per cent of rural households exclusively rely on cash (for their day to day purposes) he said, “bringing people from that segment to the upper segment, by banking services is clearly a market opportunity”. Around 350 million accounts were likely to be opened in Indian banks during the next 10 years. Urging banks to try and understand drivers for savings and borrowings, he said there are opportunities for financial inclusion in urban areas as well.