As India’s lower-middle-class population embraces digital finance with greater confidence and caution, a new narrative is emerging- one that marketers can no longer afford to overlook. The Great Indian Wallet Study 3.0 by Home Credit India dives deep into the evolving financial aspirations and behaviours of this segment, uncovering insights on UPI adoption, online payment preferences, income-expenditure dynamics, and the Financial Well-Being Index.
In an exclusive conversation with Ashish Tiwari, CMO of Home Credit India, we explored not only the key findings of the report but also how these shifts are shaping consumer sentiment, redefining financial inclusion, and informing the brand’s marketing and segmentation strategies in a highly competitive space.
Home Credit India initiated “The Great Indian Wallet Study” three years ago, to seek answers to three simple questions: How do Indian families manage their finances? What drives their decisions? What are their dreams?
This report celebrates these unsung heroes – the Earners, Dreamers, and Doers who wake up each day to build not just their own futures, but India’s economic destiny. Their financial discipline, entrepreneurial spirit, and unwavering commitment to the next generation’s prosperity inspire us to innovate, to serve better, and to be true partners in making their #ZindagiHit.
When asked about the trends that will shape marketing in the financial services space going forward, especially for brands targeting the ‘next billion’ users in India, he pointed out, “Marketing to the next billion users will require brands to combine scale with sensitivity. We anticipate a significant rise in hyper-local, Indic language content, primarily delivered via video, voice, and AI-powered chat interfaces.”
Trust-building will take centre stage, especially for first-time users, with a growing emphasis on education, testimonials, and community-driven advocacy.
“Brands that move beyond mere transactional selling and genuinely focus on financial wellness, through literacy programs, accessible tools, and purpose-driven storytelling, will undoubtedly stand out in a market that is as emotionally nuanced as it is economically diverse,” Tiwari added.
While giving an overview of the evolution of The Great Indian Wallet Study and explaining what makes version 3.0 distinct from its predecessors, Tiwari said that over the past three years, this study has evolved significantly. It began as a snapshot of household finances, but with the third version, it has transformed into a profound cultural and behavioral lens into the financial lives of India’s lower middle class.
While earlier editions, especially 2024, highlighted optimism around income growth, credit access, and digital payment adoption, this year’s study delves deeper.
“We are now measuring not just income and spending, but also financial aspirations, emotional well-being, and digital confidence. The Great Indian Wallet 3.0 brings a more integrated view of financial behaviour, combining both hard metrics (income, expenses) with crucial soft signals (trust in digital tools, aspirations, overall mindset),” he added.
Tiwari pointed out the most significant changes he observed in the financial behaviour of lower-middle-income households when compared to findings from earlier editions of the study.
He said that one of the most notable shifts has been the rising importance of education in household spending. In the 2025 report, education accounted for a significant share of the monthly wallet, on par with essentials like groceries and rent. This signals a deeper cultural shift where families are prioritising long-term upward mobility, even if it means tighter monthly budgets.
“Another significant change is a more cautious yet pragmatic attitude toward spending and credit. While the 2024 edition highlighted optimism around income growth and credit adoption, the 2025 study shows this optimism is now tempered by a heightened awareness of financial risks, especially with growing reports of digital fraud and the realities of inflation. Consumers are thinking long-term, a clear sign of growing financial maturity,” Tiwari added.
When asked about the report highlighting a rise in income levels alongside a cautious outlook for the future, and how he interprets this contrast in the context of current consumer sentiment, Tiwari explained that this contrast reflects a maturing financial mindset. People are certainly earning more, but they’re also more aware of the fragility of their financial progress, especially in a post-pandemic and inflation-sensitive world.
This cautious optimism means consumers are planning more diligently, spending more wisely, and placing greater emphasis on stability over indulgence. It’s a shift from the “spend first, worry later” mentality to “save first, spend with clarity” approach. This pragmatic outlook ensures they are better prepared to navigate economic uncertainties, he added.
While asking about the report’s observation that, despite an improved savings outlook, income-expense margins remain narrow, and what implications this has on access to formal credit, as well as how Home Credit plans to address this gap responsibly, Tiwari pointed out that the narrow buffer between income and expenses underscores the critical need for responsible and tailored financial products. For many in the lower-middle-income segment, even a small, unexpected cost can derail their finances.
Furthermore, he went on to say, “At Home Credit India, we interpret this as a clear call to offer credit solutions that are not just accessible, but truly empathetic. We’re focusing on small-ticket loans designed for real-life needs, such as home appliance purchase, a child’s school fees, or a smartphone for work.”
“Crucially, we embed safeguards into our products to prevent over-leverage. Whether it’s through flexible EMIs, or ongoing financial literacy campaigns, our aim is to empower consumers without burdening them, fostering sustainable financial well-being. This responsible approach ensures that credit becomes a genuine enabler of their aspirations, helping them bridge immediate needs while building a stronger financial foundation for the future,” Tiwari added.
Tiwari went on to explain how younger cohorts like Gen Z and Millennials are shifting in terms of financial priorities, particularly when it comes to balancing aspirations with stability, and shared his perspective on how this evolving mindset could influence the consumer finance ecosystem in the future.
“Our study reveals fascinating distinctions. Gen Z is visibly more open to exploring new-age financial tools and shows a strong inclination toward lifestyle spending, particularly in categories like fashion, travel and electronics. At the same time, they’re quick adopters of digital payments and credit-on-demand. Millennials, by contrast, are more focused on building a financial cushion and planning for the future, often prioritising savings and investment over immediate indulgence,” Tiwari explained.
These generational differences are compelling lenders and fintechs to design financial products that are both agile and modular, capable of meeting immediate aspirations while supporting long-term stability needs.
He added that it also reinforces the importance of hyper-personalised communication and segment-specific financial education to truly resonate with each cohort.
He also responded to a question on the Financial Well-Being Index, a key highlight of the report, and was asked to share how it is measured and how Indian consumers are scoring on it compared to previous years. To this, he said, “The Financial Well-Being Index is a composite measure derived from multiple factors, including changes in income, ability to save and invest, credit comfort, and perception of financial stability. Our report shows the Current Situation Index rose from 31 in 2023 to 35 in 2024, before a slight dip to 34 in 2025. Meanwhile, the Future Expectations Index showed high optimism, peaking at 64 in 2024 (from 61 in 2023), then settling at 59 in 2025.”
While 2024 saw a strong upward trend in financial well-being, the 2025 report records a modest dip.
“This is not due to a decline in income, but rather a reflection of reduced confidence in savings and investments, influenced by macroeconomic pressures. It suggests that while people are financially progressing, they are also feeling stretched, and in some cases, vulnerable. This highlights the need for products and services that not only support income growth but also build financial resilience,” he added.
Tiwari explained how The Great Indian Wallet 2025 is helping shape Home Credit India’s marketing strategy and approach to consumer segmentation, saying that the insights from the 2025 study are instrumental in refining our marketing approach by moving beyond demographic profiles to granular behavioural segments.
“For instance, we’ve identified groups which are “Cautiously Optimistic”, who prioritise transparency and low-risk financial products. The other category is “Aspirational Digitals”, who are eager to try new solutions like Credit on UPI, provided there’s enough trust and support,” Tiwari said.
“These behavioural insights directly inform our product development and how we craft messages for different regions, income brackets, and life stages. It enables us to create more relevant campaigns that speak to what truly matters in people’s lives,” he added.
Tiwari also emphasised that trust plays a crucial role in financial services and addressed how Home Credit maintains brand credibility in a sector that often faces scepticism, particularly among first-time borrowers.
“Building trust, especially among first-time borrowers, requires a relentless commitment to simplicity, transparency, and empathy. At Home Credit, we ensure our loan terms are communicated clearly, with no hidden charges or surprises. We invest heavily in training our customer-facing teams to address queries with sensitivity, ensuring a human touchpoint even in digital journeys,” he said.
Furthermore, he added, “We proactively educate users about financial safety and credit health, helping them understand not just how to borrow, but how to do so wisely. Over time, it’s this approach of being a responsible partner and not just a lender, that builds lasting credibility and helps us to live our brand thought of #ZindagiHit.”
Tiwari also highlighted that what sets Home Credit apart is the intersection of deep market access and a truly human-first approach.
“We focus on financial inclusion, maintaining a significant physical presence alongside our digital channels across over 625 cities, serving a vast customer base. Our brand voice is rooted in everyday empowerment, helping people make essential purchases that tangibly improve their quality of life, whether it’s a home appliance, a mobile phone, or supporting a child’s education,” he said.
“We’re not just offering credit; we’re offering a path to progress, with products and experiences built around dignity and trust,” he added.
When asked, as a marketer, how he sees the synergy between data-driven insights and creative storytelling evolving, especially in the financial services industry, Tiwari highlighted that in a category like finance, often perceived as cold or complex, data provides precision, but storytelling gives you connection.
“At Home Credit, we leverage insights from studies like The Great Indian Wallet to understand what people truly value, fear and aspire to. Then we translate those profound insights into relatable narratives that speak to real-life situations, be it a mother buying a fan for her child’s comfort or a young couple saving for their child’s education. This blend of data-backed empathy and emotionally resonant storytelling is where the future of impactful financial marketing lies,” he added.
