How Growth in Mobile Data Usage Fuels Financial Services Discovery and Purchase in India

India is undergoing a mobile data revolution, particularly in tier-2 cities and towns, where data consumption has skyrocketed over the last few years. This upsurge in mobile usage is having a profound impact on the financial services industry, facilitating the discovery, evaluation, and purchase of financial products and services.

With mobile phones becoming a primary channel for content consumption, financial literacy and service adoption are increasing, particularly as more users in non-metro areas gain access to high-speed internet through 4G and 5G. Here's a closer look at how this mobile data growth is transforming financial product awareness and how platforms like Viso are capitalizing on this trend.

A Surge in Data Usage – The Numbers Speak for Themselves

Data usage in tier-2 cities and towns in India has seen a massive rise. Per capita data consumption in these regions now stands at 35-40 GB per month, which is 30% higher than that of metro cities.

This shift is significant, as it shows that internet penetration and mobile phone use in smaller cities are outpacing traditional urban centers. The accessibility to mobile data is changing the way consumers engage with digital services, including financial planning and purchasing.

• Tier-2 Cities: 30.3 GB of data per capita/month

• Tier-1 Cities: 23.7 GB of data per capita/month

This surge in data consumption has directly influenced the time people spend online.

Indians now spend an average of 4.8 hours per day on mobile apps, ranking them sixth in the world for the most time spent on mobile devices. With 1.19 trillion hours logged on mobile phones in 2023 (a 10% increase from the previous year), more users are exposed to digital platforms that offer financial services, boosting awareness and consideration of products like insurance, mutual funds, loans, and investment plans.

The Rise of 5G and Its Impact on Financial Service Platforms

5G is rapidly catching up with metro areas, with 35-40% penetration in tier-2 cities like Jodhpur, Ranchi, and Lucknow. Compared to metro cities, where 5G penetration is 40-45%, smaller cities are not far behind in terms of access to faster internet speeds.

This shift enables better access to high-quality digital financial services, including video consultations with advisors, real-time data on investment performance, and seamless transaction capabilities.

Cities like Kolkata and Howrah have already crossed the 40% mark in 5G availability, showing that even beyond tier-2 cities, data connectivity is becoming a key enabler of digital interactions, including financial planning and transactions.

OTT and Financial Literacy: A Perfect Match

The data also reveals that 86% of internet users in India are consuming data for Over-the-Top (OTT) services, including video and audio streaming.

This rise in video consumption opens up opportunities for financial service platforms to leverage educational content. Financial institutions and fintech platforms can now offer tutorials, explainers, and webinars on topics like investment strategies, insurance plans, and retirement savings, all delivered through mobile apps.

As OTT content becomes a significant part of users' daily consumption, integrating financial literacy into these platforms can create a more informed user base.

Tier-2 Consumers Are Driving the Shift

The data demonstrates that financial service adoption is increasingly popular in tier-2 cities. While OTT, social media, and communication dominate usage in smaller metros, Net Commerce, Digital Payment, and Online Learning are leading in tier-1 cities.

This difference suggests that financial services platforms need to focus on digital payments and net commerce to engage users from both rural and small metro regions, where mobile data is heavily utilized.

The growing reliance on digital payments and net commerce in tier-1 cities (where 38% of internet users access these services) indicates that mobile data consumption is directly contributing to the rise in digital financial transactions.

This is creating an ecosystem where mobile phone users, regardless of their location, can easily explore, evaluate, and purchase financial products.

How Viso Is Capitalizing on This Data-Driven Transformation

As more people access financial services via mobile phones, Viso is strategically positioned to capitalize on this trend. Viso's platform enables users to discover, evaluate, and purchase financial services such as insurance, mutual funds, investments, and loans—all through digital channels.

By leveraging video consultations and real-time assistance, Viso ensures that users can receive expert financial advice on demand, no matter where they are located.

Through its network of financial advisors, mutual fund distributors, and insurance agents, Viso offers tailored solutions to meet individual financial needs. The platform's integration with Smart Assist, an AI-powered tool, helps customers make informed decisions based on their financial goals.

Viso’s ability to harness this wave of mobile data growth, especially in tier-2 cities, positions it as a key player in the digital financial services space.

With mobile data consumption continuing to rise and 5G coverage expanding rapidly, Viso is poised to bridge the gap between financial experts and consumers, driving financial literacy and product adoption across India.

Conclusion

The growth in mobile data consumption, especially in tier-2 cities, has fundamentally changed how Indians access and engage with financial services. With more time spent on mobile phones and better access to high-speed data, users are becoming more financially aware and empowered to make informed decisions.

Platforms like Viso are harnessing this digital transformation to offer personalized financial solutions, helping users navigate their financial journeys with ease.

As data consumption continues to rise and 5G expands, the potential for financial service platforms to reach more users and drive financial inclusion is immense. For consumers, the increased access to expert advice, digital payment solutions, and educational content is transforming the financial services landscape in India.

Source: Bernstein Research