Insights
Customer centricity, simple products and collaborative approach: key to democratising financial services
India is steadily progressing towards the vision of becoming a cashless economy, and the digital payments ecosystem is fuelling this unprecedented growth. With users becoming comfortable with various digital modes of payments, fintech players are making efforts to bring in the next wave of digital financial inclusion and PhonePe is leading the charge.
In this edition of the PhonePe Pulse Beat of Progress conversation series, Karthik Raghupathy, Head of Strategy & Investor Relations at PhonePe, got into a candid conversation with Hemant Gala, Head of Financial Services & Banking, PhonePe, on the need for a differentiated approach towards customer engagement and the importance to simplify complex products such as insurance and investments for higher adoption. Here is an excerpt from the conversation:
The shift in consumer behaviour
Amplified digital adoption has enhanced customer awareness and education spurring informed choices and a
better understanding of financial services. On the investments side, Hemant explained how smart
initiatives and simplified processes such as the UPI-based SIP have empowered customers to undertake
their investment journeys without unwarranted intervention. Democratizing of information, digital mode
of buying, and availability of varied investment avenues is encouraging consumers to diversify their
portfolios. On the other hand, the pandemic has prioritized insurance across Life and General
categories.
Initiatives by Regulatory bodies facilitating financial inclusion
Hemant acknowledged the massive efforts made by the governing forces to drive penetration, inclusive
growth, and adoption of financial products. He shared that these endeavours have laid the foundation for
financial inclusivity and will only get stronger over time. He further shed light on key initiatives
undertaken by regulatory bodies - mass programs like the Ayushman Bharat Yojana, policy changes
implemented by IRDAI (Insurance Regulatory and Development Authority of India) to ease the insurance
acquisition process, liberalizing the insurance space for private participation, SEBI (Securities and
Exchange Board of India) relaxing norms for the launch of innovative products by new asset management
companies and AMFI (Association of Mutual Funds in India) playing an active role in creating awareness
around informed investing. Hemant firmly believes that such measures encourage the spirit of innovation
in meeting the needs of a diverse populace and will go a long way in bringing more people into the fold
of financial inclusion.
Differentiated approach to solving challenges
Hemant opined that insurance and investments are under-penetrated categories in India in comparison to
global benchmarks owing to problems of distribution, customer education, and awareness. Hemant spoke
about the intensive research undertaken by PhonePe to understand customer needs that helped in crafting
customized digital solutions. Underscoring a strong customer-first approach, he highlighted that PhonePe
is focused on providing consumers with simple-to-understand products at affordable prices backed with
features such as ready assistance, instant enrolment, and self-inspection, amongst others. PhonePe has
also heavily invested in its tech architecture to ensure efficiencies of time, speed, and comfort of
simplified payment flows for the end user.
He also explained the importance of forging strong ties with the end-consumer through regular
engagement, building long-standing trust by ensuring consistent and relevant communication, and the
solutions being easily accessible across geographies. All these efforts have helped PhonePe augment
reach, engagement, and adoption by people even in the hinterlands. Sharing an example of PhonePe’s
efforts toward customer education and engagement, Hemant spoke about a recent marketing campaign called
“No tension insurance”. The campaign is targeted to counter the complexity attached to insurance
products and drive awareness that life gets easier for those who anticipate, plan, and buy insurance in
time.
Solutions oriented journey
Hemant shared that PhonePe is committed to providing diversified solutions to encourage the investment
climate in the country and drive further adoption of insurance. He also shared key milestones achieved
by PhonePe in the mutual funds and insurance categories - over 1.3 million policies sold in the
two-wheeler segment, the first to launch a COVID-specific insurance product and selling over 0.5 million
policies, over 250% annual growth in PhonePe’s new investors and is the market leader in the digital
sale of gold in India.
From selling insurance, and facilitating buying gold & silver digitally, to being the first to launch
the UPI-backed SIP, PhonePe’s repertoire of financial product offerings is in line with its intent to
continue the dream run of adding scale and value to the digital payments ecosystem.
Watch the full video of the conversation here