India the Most Investment Savvy Economy in the World: StanChart Study

India comes out as the most investment savvy nation where 67 percent of the emerging affluent consumers are socially mobile, according to a study by Standard Chartered Bank.

The study, ‘The Emerging Affluent Study 2018– Climbing the Prosperity Ladder,’ shows that India’s emerging affluent are the biggest advocates of online banking, as eight out of ten believe it gives them more control over their financial matters.

According to the study, high rates of the upward social mobility help people to carve out a life which surpasses their parents.’ And while the number of people climbing the social ladder is slowing in the West, a new group of people, called ‘emerging affluent’ in fast-growing economies in Asia, Africa, and the Middle East, can be seen accumulating wealth and rapidly improving their personal wellbeing.

The study also shows that more than half (59 percent) of ‘emerging affluent’ consumers in Asia, Africa, and the Middle East are experiencing upward social mobility as part of the rapid economic growth of these countries.

India is also leading in the financial management when there is risk involved. Two-thirds of Indians (66 percent) have accepted high levels of risk in investing their money in online financial products in exchange for a high level of return while 53 percent of average global emerging affluent are willing to do the same.

About 76 percent of Indian emerging affluent also believe that managing their money digitally has helped them to get closer to achieving their financial goals while 78 percent believe familiarity with digital tools has been vital to their personal success.

The study, which examines the views of 11,000 emerging affluent consumers – individuals that are earning enough to save and invest – from 11 markets across Asia, Africa, and the Middle East, also suggests that paying for their children’s education was the most important savings priority for the emerging affluent in every market in the study. On average, 16 percent said education as the top financial goal. Saving to buy an investment property comes next, with 8 percent describing this as their top priority.

Buying a first home and setting up a business is the top saving priority for only 7 percent of the emerging affluent across the globe.

To achieve financial goals, 31 percent of Indian emerging affluent are leaning on mutual funds while globally fixed income investments are most popular overall, with 19 percent of the emerging affluent using these to achieve their financial goal. Equity investments come a close second (18 percent) and mutual funds occupy the third place (16 percent).

“It is exciting to see that social mobility is booming among the emerging affluent and that they are outstripping their parents’ success in education, careers, and home ownership,” PTI quoted Shyamal Saxena, Head of Retail Banking, India, Standard Chartered Bank as saying. “Digital financial products are enabling the emerging affluent to achieve their goals, and these tools will be crucial in helping them take their personal financial success to the next level.”

Ben Hung, CEO of Retail Banking & Wealth Management at Standard Chartered, said, “Emerging affluent consumers are on an upward social trajectory: they are outstripping their parents’ success in education, careers, and home ownership. As their ambitions and aspirations grow, they’re demanding convenient financial services and digital technology to broaden their access to money management and advance their financial wellbeing. It’s an exciting journey where they are not only improving their own lives, but they are also fueling growth in some of the world’s most exciting markets.”