According to a recent survey published by EY and the Confederation of Indian Industry (CII), the Unified Payments Interface (UPI) has become the most popular way for rural and semi-urban Indians to conduct financial transactions.
At CII’s Annual Technology Summit in New Delhi, the paper, “Financial Inclusion through Technology and Literacy in India: Strategies for Sustainable Growth,” was unveiled.
38% of respondents from rural and semi-urban areas chose UPI as their preferred transaction mechanism, according to the report, which is based on a poll of 1,033 respondents. Those between the ages of 18 and 35 showed a significantly stronger preference for UPI. However, 11% of respondents did not prefer UPI at all, and 19% of respondents still only used cash.
With 96% of respondents saying they would be eager to save and invest, the report also highlighted a strong savings culture, which gives financial institutions a chance to provide specialized investment products. Furthermore, 55% of participants expressed interest in learning about budgeting, insurance, loans, and savings as well as financial management.
Traditional banking is still widely trusted, even as the use of digital payments increases. 86% of account holders in rural and semi-urban areas still prefer to visit actual bank branches, according to the survey. Sixty percent of borrowers apply for loans through official banking channels.