Market Survey and Segmentation

Broad Trends

Based on a Kotak Institutional Equities

Research report⁠

Most FD's < 15L

Term deposits are mostly in the 1 to 3 year window, and is fairly uniform across regions

~35 to 40% of deposits are in the 7 to 8% interest rate

80% of overall term deposits are either in the 1L to 15L range, or over 1Cr.

80% of the overall term deposits come from urban/metropolitan markets.

The share is higher for term deposits from non-individuals.

Market Segmentation Criteria

Let's consider a few characteristics of the target customer:

Investor Sophistication

Income Bracket

Disposable Income

Age

Gender

Personas

Upfront, we can hypothesize some combinations of the above Criteria that would benefit more from the Service:

Older folk, since they are eligible for special rates.

They might even have disposable income, and not have a plan to manage it.

There may be some challenges with making transactions on an app though.

Let's call this user: Sriram (75, retired, pensioner).

Early career folk, would be able to start investing in an easy, low-risk way

assuming they have at least a little surplus money at the end of the month

Women in this cohort might even be eligible for special rates

Let's call this user: Anjali (23, settling into first job, ~30k a month income)

Mid-career folk

would already have disposable income

might even already be investing in Mutual funds, etc

till date might not have considered FD's as an investment vehicle because for the last 10 years or so rates have genuinely been terrible.

Based on Market trends and Market Segmentation Criteria, the early and mid-career Users represent a larger TAM that's also more easily reachable via a technology-enabled experience. When it comes to purchasing FD's though, the hypothesis is that both categories will need significant Education steps to understand this investment category.