As part of an aggressive strategy to attract the high-net-worth individual (HNI) segment, IDFC FIRST Bank has rolled out its ‘Gaj’ credit card. Besides the Ashva and Mayura series, this exclusive invitation-only metal card is the highest one in the bank’s trilogy. It is made for the “Global Indian” and thus offers a 0% Forex Markup along with interest-free global ATM access, which can be seen as the bank’s response to the high demand for hassle-free international traveling. This introduction is in line with a more comprehensive banking trend where various banks have started to divert their attention towards high-value, feature-rich products that do not require complex reward math and offer direct 1:1 value-back systems instead.
Rise of Credit Card Discipline and BNPL Awareness
It is during the pandemic that financial professionals have started to notice a major shift in the attitudes of younger customers, especially those belonging to the Gen Z generation, towards banking products. There is a trend in credit cards replacing the old perception of being debt traps and becoming financial tools, allowing customers to strategize their finances. According to the latest information, there is a trend toward cards that give special rewards for instant-commerce platforms like Zepto and Instamart. At the same time, there is a growing wariness toward Buy Now, Pay Later (BNPL) plans, which are more and more considered as traps for impulse-spending. This change in consumers’ behavior not only compels banks to adapt their credit underwriting and marketing strategies but also to get ready for a more financially savvy clientele.
Strengthening Financial Inclusion Through Insurance and ITR
Insurance and ITR are two powerful tools that can contribute to the financial inclusion of the previously unreached population. The financial world is experiencing a rise of “low-KYC” bank accounts and investments at very young ages, with even 19-year-olds getting involved in mutual funds. Furthermore, the entire banking system is linking increasingly with tax and insurance services. Recent news reports have clarified that income tax returns (ITR) filing is not limited anymore to the taxable category only, but it is also indispensable for getting education loans and the tax deducted at source (TDS) refunds. The non-usage of employer-provided and personal health insurance is at an all-time high as families are looking to protect their savings against health care inflation.