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As the festive season dawns upon India, brands rush to put their strategies and plans in place. The last quarter of the year is not just a time for celebration; it is also a critical period for businesses across sectors, with the Banking, Financial Services, and Insurance (BFSI) industry being no exception. Diwali, Navratri, Dussehra, and Christmas—these are not just festivals but economic events that significantly influence consumer behaviour. It is common knowledge that this period is marked by a unique convergence of heightened consumer sentiment, increased disposable incomes, and a cultural inclination toward making significant financial decisions.
The significance of this season for the BFSI industry cannot be overstated. Traditionally, it has been a time when consumers open their wallets wider, encouraged by festive bonuses, tax-saving deadlines, and the general atmosphere of optimism and joyfulness. More importantly, it is a time when financial decisions that have been postponed throughout the year are finally made—whether it’s buying a new home, investing in a mutual fund, or securing health insurance for the family. Financial institutions, therefore, gear up months in advance, crafting marketing strategies that are not just reactive but also predictive, aiming to capture the attention of a diverse and increasingly digital-savvy customer base.
The Indian Fintech industry is estimated to be at US$ 150 billion by 2025. India has the 3rd largest FinTech ecosystem globally. India is one of the fastest-growing Fintech markets in the world. The AUM of the Indian MF Industry has grown from INR 9.16 trillion (US$ 110.63 billion) in 2014, to INR 54.54 trillion (US$ 658.72 billion) in 2024, growing ~6x in a span of 10 years.
In recent years, the BFSI sector has undergone a transformation driven by digital innovation, changing consumer preferences, and a deeper penetration into Tier II and Tier III cities. This evolution has necessitated a shift in marketing strategies, especially during the festive season. While traditional media like television and print continue to play a role, digital platforms have taken centre stage, offering BFSI brands a direct line to engage with consumers in more personalised and impactful ways. The integration of data analytics, hyper-local marketing, and the strategic use of influencers are now essential tools in a marketer’s arsenal.
Moreover, the festive season is not just about boosting sales; it is about building relationships and trust—elements that are crucial in a sector as sensitive as BFSI. Consumer trust in financial institutions is hard-won and easily lost, making transparent communication and customer-centric approaches more important than ever. This is particularly true in an environment where consumers are increasingly aware of their financial needs and are seeking out brands that not only offer products but also provide value and security.
The competitive landscape during the festive season is intense, with every brand vying for consumer attention through creative campaigns, compelling offers, and strategic media spends. To stand out, BFSI companies are not just required to follow trends—they ought to set them.
How does the sentiment look?
The festive season traditionally witnesses a surge in consumer spending across various sectors, and the BFSI category is no exception. According to Kedarswamy Ravangave, Head of Marketing for Consumer and Commercial Bank at Kotak Mahindra Bank, the anticipation of festive bonuses and the overall economic buoyancy typically drive increased consumer spending and investment decisions during this period. "The festive season is traditionally a time of heightened consumer activity, and this year will be no different," Ravangave notes. He emphasises that this seasonal uptick is expected to translate into more significant consumer engagement with financial products, as people are inclined to make substantial financial decisions during this auspicious time.
Sapna Desai, CMO at ManipalCigna, echoes this sentiment, highlighting that strong GDP growth in India is likely to fuel positive spending behaviour. According to her, "2023 data suggests that 84% of Indians plan to increase their spending during the festive season. In the BFSI category, this is likely to translate into increased demand for financial products, especially health insurance." This trend aligns with the growing consumer comfort with online transactions and digital solutions, indicating a continued shift towards digital channels during the festive season.
Sandeep Walunj, Group CMO at Motilal Oswal Financial Services, also points out that certain segments within the BFSI sector, such as loans and mortgages, are poised to see a spike during the festive season. He observes, "Loans and mortgages do over-index during festive. Discretionary consumption should go up during this festive so payments and consumer loans should do well." This suggests a multifaceted consumer approach, where investments and loans gain traction based on both market opportunities and the festive spirit.
Striking the thematic cord
To resonate with consumers during the festive season, BFSI companies are crafting marketing strategies that emphasise themes relevant to the current socio-economic climate. Kotak Mahindra Bank, for instance, is focusing on financial wellness and inclusivity. Ravangave explains, "This festive season, our marketing efforts are centred around themes of financial wellness and inclusivity. We aim to communicate the importance of smart financial planning, emphasising products that help customers achieve their financial goals while enjoying the festivities." This approach involves leveraging data analytics and exploring unique partnerships to deliver more targeted and relevant content, ensuring that the messaging cuts through the competitive clutter.
ManipalCigna’s strategy revolves around health, well-being, and peace of mind. Desai elaborates, "Our festive marketing plans this year revolve around themes of health, well-being, and peace of mind. We're focusing on the message that good health is the foundation of a happy and prosperous life." The company is set to amplify its digital presence through targeted ads, social media campaigns, and influencer partnerships, particularly in regional markets. The emphasis on personalised offers and regional content is a strategic move to engage a diverse customer base.
Motilal Oswal Financial Services is taking a dual approach, with activations around both loans and investing themes. Walunj states, "Loan messaging mirrors the festive spirit, however, investing communication is more tuned to the relevance of specific products being spoken about. There will, of course, be a festive context built in around the product core." By differentiating itself through research, high-conviction portfolios, and warm customer relationships, Motilal Oswal aims to stand out in a crowded marketplace.
Digital-heavy AdEx
The BFSI sector has seen a significant boost in its advertising expenditure (AdEx) over the past year, and this trend is expected to continue. With the increasing importance of digital platforms, companies are reallocating substantial portions of their budgets to online media. Ravangave notes, "We foresee a continued rise in digital media spending within the BFSI sector, reflecting the broader trend of consumers moving towards online platforms for their financial needs." This shift is further supported by an emphasis on innovative formats such as interactive content, influencer collaborations, and regional content, which are likely to play significant roles this festive season.
Desai concurs, stating, "We expect to see a continued trend towards digital media, with a significant portion of the budget allocated to online platforms, including social media, digital marketing, and search engine optimization." However, the company is not neglecting traditional media, with investments in television and radio to maintain a balanced reach. Experiential marketing through on-ground activities, particularly in Tier II and III cities, will also form a part of its strategy to create direct community engagement.
Motilal Oswal Financial Services is also expecting a rise in AdEx, particularly in digital and outdoor media. Walunj anticipates, "Social and performance marketing will get more prominence, so I am seeing more digital spends. Outdoor is also expected to make a splash given the time-sensitive nature of some categories like loans." This approach underscores the growing importance of real-time, location-based marketing to capture consumer interest during the festive rush.
There is a clear consensus that digital media will dominate BFSI AdEx this festive season. The sector is shifting its focus toward online platforms, with a strong emphasis on innovative content, social media, and performance marketing, while traditional media still holds value for broader audience engagement, particularly through television and outdoor advertising.
Descending the tiers with hyperlocal
The BFSI industry’s efforts to tap into Tier II and III cities have been gaining momentum, driven by increasing literacy rates and internet penetration in these regions. Companies are adopting hyper-local marketing strategies to resonate with these audiences, ensuring that their messaging is both relevant and accessible. Ravangave emphasises Kotak Mahindra Bank’s focus on hyper-local marketing, stating, "Our strategy involves a blend of hyper-local marketing and digital outreach, ensuring that our messaging is both relevant and accessible." The use of regional languages and local influencers plays a critical role in building stronger connections with these communities.
ManipalCigna’s strategy is also heavily localised, with Desai noting, "Strategies that work best include localised marketing efforts, such as relevant messaging, content created by the community, and augmenting local influencers." The company has proactively opened over 80 branches across various states in India and organised on-ground activation events in Tier II and III cities to educate the population about health insurance and the importance of financial protection.
Motilal Oswal Financial Services is leveraging ambient marketing and social-digital channels, particularly vernacular content, to engage non-metro customers. Walunj explains, "Ambient marketing around a point of purchase and social-digital (especially vernacular and micro-influencer-led content) are the proven levers in these markets."
Experts seem fairly confident about the spending power and ambition of non-metro customers, hoping to tap into this section with specific strategies.
Navigating the dynamism
More than any other industry, the BFSI sector requires a continuous effort to build and sustain consumer trust. Brands try to focus on transparent communication and customer-centric marketing to build and sustain consumer confidence. Ravangave asserts, "Our approach to enhance trust through marketing involves transparent communication, highlighting the security and reliability of our products. We’re also emphasising customer testimonials to build credibility. Additionally, our customer support channels are being amplified to ensure that we’re there for our customers whenever they need us." The bank is also amplifying its customer support channels to ensure that it is available to assist customers whenever needed, further strengthening their trust in the brand.
Desai from ManipalCigna emphasises the role of consistent communication and customer education in building trust. "Our marketing efforts highlight health security features, customer testimonials, and the brand's track record of being the expert health insurer to reinforce trust. By highlighting real-life testimonials, we aim to show the tangible impact of our services," she says.
Walunj points out that investor confidence in the equity market has grown considerably, diminishing concerns about volatility. He explains, "Pedigreed, resourceful brands that can be accessed for handholding are gaining more traction compared to 'apps' that leave you on your own. Marketing is at the forefront of the solution to win at these touchpoints, strongly differentiating based on these and ensuring a compelling consumer experience."
At any rate, BFSI brands are doubling down on their marketing efforts, focusing on themes that resonate with the current consumer sentiment and leveraging both digital and traditional media to maximise their reach. The integration of regional content, influencer partnerships, and personalised offerings highlights a shift towards more targeted and relevant communication, aiming to build stronger connections with consumers. As evidenced by the insights from industry leaders, there is a strong emphasis on leveraging digital platforms and hyper-local strategies to engage with a diverse customer base, particularly in Tier II and III cities.