India is witnessing a surge in searches for personal loans and an evolution of customer behavior never seen before. Personal loan searches range from emergencies, home and car purchases, marriage, holidays and more. What opportunities do these search trends present for financial institutions and loan providers? Techmagnate, India's leading digital marketing agency, has the answers.
The dynamic landscape of the Indian financial sector presents an unparalleled opportunity for Non-Banking Financial Companies (NBFCs), traditional banks and lending institutions to capitalize on the burgeoning search trends in the personal loan market.
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A report by Techmagnate, a leading Indian digital marketing company, analyzed search trends in the personal loan industry based on search volume, type of search, and also market share.
By taking a closer look at the data and insights gained from recent search trends, financial institutions can strategically strengthen their digital marketing efforts to capture a growing audience whose needs are not yet being fully served.
Understanding personal loan search trends in India
Techmagnate's comprehensive analysis of over 18,000 keywords revealed that the search volume across the Indian personal loan industry has grown significantly, growing by 25.73% from 51.64 billion searches in FY22 to 64.92 billion searches in FY23.
Indian Personal Loan Industry: Current Market Status
According to data from the Reserve Bank of India (RBI), personal loans grew 30.8% year-on-year in August 2023. Though the RBI has warned banks and lending institutions to keep strict checks on loan disbursements, the data at hand confirms what people are asking for.
Furthermore, the total credit to the borrower is 47.7 trillion Indian rupees In August 2023, this was up from INR 36.7 trillion just a year ago.
Leading the way: Top 5 Indian brands for personal loans by search volume
While data from Techmagnate's Search Trends Report highlights the top 20 brands by search volume (SV) in India, in this article we take a closer look at the top 5 brands.
The big players in the Indian market, viz. HDFC Bank, SBI, Bank of Baroda (BoB), ICICI Bank, Axis Bank It is leading the search volume.
HDFC Bank is a big 7.12% Search volume increased from 2022 to 2023, solidifying the brand's position as a top brand.
HDFC's market share is 23.46% This shows that consumer interest in personal loans is quite high.
Meanwhile, SBI ranked second but saw a slight decline in search volume of -2.52%, reflecting a slight drop in interest from FY22 to FY23.
Despite the decline, SBI maintains a large market share. 17.62%, It highlights its enduring importance.
Bank of Baroda has shown phenomenal growth. 158.61% Search volume has increased, indicating a significant increase in consumer interest.
According to Sarvesh Bagla, CEO and Founder, Techmagnate, these search trends present a valuable opportunity for brands: “Our personal loan search trends report clearly shows that more and more Indians are looking for personal loans every year. Data shows that searches across the industry grew 19% last year.
Meanwhile, searches for instant personal loans grew by 31%, with searches from Tier 2 and Tier 3 cities accounting for over 55% of the total search volume. All these figures clearly indicate that there is an opportunity for banks, NBFCs and fintechs to connect with people looking for their products.”
Personal loans in the digital realm: Three niche opportunities for success
Keeping in mind the RBI warning, NBFCs, banks and lending institutions need to recognise the momentum of search for lending trends in India and adjust their digital strategies to capitalise on the growing interest.
How can these institutions step forward to meet consumer needs and changing behavior? A strong digital marketing strategy needs to lead the way, leveraging available niche opportunities.
Techmagnate’s report identifies three clear opportunities within search trends that financial institutions and fintechs should explore.
a) Search for low credit scores
b) Local search for “near me” or personal loans
c) Dialect Search
1. Personal Loans for Low Credit Score
According to the Search Trends Report, Tech Magnate According to the report, searches for “personal loans for low credit scores” have seen a healthy increase. 55.57% Within the scope of a single fiscal year.
On the surface, people are looking for ways to boost their income while understanding how much of a hassle it is to get approved for a loan because of a low score.
Additionally, while people are conducting this particular search, there are many lenders out there that offer loans to people with low credit scores.
However, it is worth noting that 55.57% The growing number of searches for “personal loans for low credit scores” remains an untapped niche market, and NBFCs and lending institutions can position themselves as comprehensive financial partners catering to the unique needs of individuals with credit issues.
2. Take advantage of local search for personal loans
“Nearby” or local search data offers the most interesting opportunities for lending institutions.
While branded keywords are expected to lead the way, it is non-branded searches that attract the most searches nationwide.
The non-branded category, which refers to general local searches without a specific brand, saw a steady increase in search volume of 16.65%.
Boasting an overwhelming market share 99.62%Unbranded local search continues to be the main driver of local interest in the personal loan industry.
3. Exploit the possibilities of dialect searching
Even in dialect searches, the contribution of non-branded keywords is phenomenal. 95.32% market share.
While branded search volume is increasing overall, non-branded search volume continues to create the greatest opportunity for lending institutions to connect with consumers.
With all these examples in mind, a comprehensive local marketing strategy that caters to both branded and non-branded categories can effectively leverage the diverse local landscape of personal loan searches.
Innovative strategies for brands to consider
Develop customized financial products that take into account risk factors associated with low credit scores.
Implement educational content to help consumers and dispel misconceptions about obtaining a loan with poor credit.
Work with credit bureaus to effectively assess and manage risk.
Meet people's needs through interactive local language content.
Implement a strong local search strategy to cater to the needs of people looking for personal loans nearby.
Search trends for auto finance show a similar preference for local service.
The Digital Frontier of Financial Marketing
As Techmagnate's search trends report shows, the search landscape for personal loans in India is evolving and the synergy of data-driven insights and innovative digital marketing strategies can help NBFCs, banks and lending institutions reach unprecedented heights.
By adapting to changing consumer preferences and capitalizing on niche opportunities, these financial institutions can not only gain a competitive advantage but also contribute to financial empowerment in a diverse and growing market.
Get ahead of your digital marketing game. Download your personal loan search trends report now.
Disclaimer: This article is a paid publication and has no journalistic/editorial involvement on the part of Hindustan Times. Hindustan Times does not endorse/support the content of the article/advertisement and/or the views expressed herein. Hindustan Times is not responsible or liable in any manner whatsoever for anything contained in the article and/or any views, opinions, statements, declarations, assertions etc. expressed in the article.
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