By Dhriti Agarwal, Soumitro Datta, Lakshmi Ajayan & Dharmesh Ba
This interview was conducted as a part of ‘Future of data sharing’ sponsored by Facebook. In this series, we interviewed participants around their access, adoption, and usage of financial products along with their perception of data sharing to financial institutions.
Disclaimer: The income range was self-reported by the participant. D91 Labs does not request the participants to disclose their exact income.
Short Story
30-year-old Mira works as a Branch Head at an educational institute in Mumbai. Born and brought up in Mumbai, she stays with her husband and her parents in a house they own. She plans to have a baby and buy a house in the near future. She has been investing in FDs, mutual funds, stocks and PPFs. Her long term goal is to become financially strong.
Banking
- Mira has 1 active bank account with Central Bank which she uses as a joint account along with her husband.
- It is her salary account and she uses the associated debit card for online bill payments on PhonePe and PayTM.
- She checks her account balance, PPF and recent transactions on the bank’s mobile app but visits the bank for her bank statements.
“I decided to open an account with Central Bank because Axis Bank required ₹10,000 minimum to open an account which I didn’t have. In Central Bank it was ₹1,000.”
You already had an account with Axis Bank. So, why did you open an account with Central Bank?
Central Bank is very close to my house and their staff is very friendly. It is also a government bank. I don’t have much information about private banks so I am not sure I can trust a private bank.You mentioned that you use the bank’s mobile app for everything except viewing your bank statements. Why?
Right now I am using their online app for checking everything — my account balance, PPF and my last 6 transactions. But I cannot access my monthly bank statements, I can only see the last 6 transactions. So I have to go to the bank once a month and update my passbook.
Payment Modes
- Mira’s preferred payment methods are cash and debit card. She uses her debit card to pay utility bills using PayTM and PhonePe.
- She has not connected her bank account to any UPI apps or digital wallets.
- Mira uses netbanking on her phone to pay her LIC premiums.
- She does not like the idea of credit cards and Pay Later options:
“If I have cash in hand, why should I pay later? I don’t want any debt.”
You mentioned that you withdraw money from ATMs only 3–4 times a month. Why?
I think normally, ATMs allow you to withdraw only 3–4 times in a month. There is a Central Bank ATM near my house where I can withdraw from multiple times without any extra charge.Why don’t you use a credit card or Pay Later options?
It’s tough to manage expenses — I don’t like these ‘spend now, pay the bank later’ systems. I get calls from the bank offering cards but I like to use the money that I have.
Why don’t you use digital wallets or UPI on PhonePe and PayTM?
My friends told me it is safer but I think I need to go to my bank to activate it. And everyone has PayTM and PhonePe now or I can also swipe my debit card so I don’t think I need UPI.
Expenses
- Mira stays in a house her family owns so she doesn’t need to budget for rent. Thus Mira’s regular monthly expenses include utility bills, groceries, petrol, phone recharges, food and entertainment.
- She makes all these payments online using her debit card, except for petrol which she pays in cash.
- She shops for groceries twice her month using the DMart app. She started using it when the COVID-19 lockdown began and finds it very convenient.
- She is planning on having a baby and pays for the periodic doctor’s visits in cash.
Do you keep a track of payments? How?
Yes, I have an idea that the monthly household expenses are ₹15,000. Other expenses like shopping, eating out and watching movies come on top of this.
Loans
- Mira does not have any loans or credit cards and hence no history of a credit score yet. However, she plans to take a home loan from her bank in the next 3–4 years.
While taking a loan, a bank will ask for your Credit History. Given that you haven’t taken a loan or a Credit Card, what do you plan to do?
I don’t know anything about loans. I don’t have an idea how it works. My sister is a CA, I will ask her when the time comes.
Investments
- A minimum of 30% of Mira’s salary goes into savings.
- Her traditional approach to payment modes is contrasted by her keen savings at different levels:
“I don’t want to put all my money in stocks or mutual funds. My husband and I have made segregations — Savings, FDs, Mutual Funds, Stocks, PPF.”
Why did you make these FDs? Are you saving for something in particular?
I have made up my mind that I need to save at different levels. If we ever need money, we should have it.You already had an FD with Central Bank. Why did you get another FD from SVC Bank?
I made an FD at Central bank first but then I realised that the interest was very low and the annual renewal period resulted in an even lesser interest. Then my friend advised me to put my money in SVC, where she had an account. I got a good interest rate because I opted for 3 years.
- She keeps track of her FDs through annual renewals at the banks. While she is open to better investment options, she did not close the FD with Central Bank.
“I chose an FD at SVC because I didn’t need to open a bank account.”
If you don’t have an account with SVC Bank, what is the proof of ownership of the FD?
They have given me a receipt. I have one from Central Bank too.
Insurances
- Mira opted for a health insurance plan on the recommendation of her uncle who looks into multiple sectors of finance like Mutual Funds, LICs and Health Insurance.
- She makes the premium payments once a year using Net Banking on their website.
- She does not have Life Insurance but her husband has a Unit Linked Insurance Plan.
How did you get your vehicle insurance?
I got it when I bought my scooter from the dealership. I have not taken any separate insurance.
Technology
Data Sharing and Privacy
- Mira would prefer to take her future home loan from a government bank and is comfortable sharing her name, address, contact and KYC details for a loan because she feels she won’t get the loan otherwise.
Why? What if these other places are giving you better terms for the loan?
I don’t have any information about fintech apps, private banks and NBFC so I will have to do some research.
We asked the participant what kind of data they would be interested in sharing across the different types of loan providers to borrow a personal loan.
- If optional, Mira would be very selective about the information she would share to get a loan. She would not share details about her eCommerce transactions, investments, IT returns, bank statements, income or KYC.
Why are you more comfortable sharing your insurance details compared to your investment details?
Health Insurance is basic and everyone has it. But why would I tell other people how much I am investing and where I am investing? You are not supposed to disclose that information to everyone.
“If I had an option not to share information…why would I give it to them directly? Even if it involves a few additional steps, no problem.”
Social media has personal information that can be used to profile a person by a third party. If your bank wants to profile you based on your social media activity before giving you a loan would you let them do that?
Not at all! Why? What is the connection? Why go that far?You mentioned that you receive unsolicited phone calls with loan and credit card offers. Why do you still enter your correct mobile number at places like security desks?
Because it is not right to give your wrong number. When I get calls, I block them — that is the only solution.
- Mira is aware that her personal data is being monitored and is careful of what she posts on social media platforms.
- She doesn’t pay much attention to privacy policies, terms and conditions and app permissions because she cannot use the apps if she doesn’t accept them.
“I wouldn’t mind paying so that Whatsapp will not monitor and store my data but it should be honest.”
Goals and aspirations
Mira is goal-oriented and her plans to have a baby and buy a house are supported by varied investments. She aims to become financially independent and stable. If there is any need, she should have the money for it.
Do you have any short term goals or long term financial plans?
Nothing specific as such. I like to move step by step. We have made savings in the right places so when the money is required, we can get it, not where you can only get your money after 10–12 years.
Credits
- Interviewed and transcribed by Soumitro Datta
- Analysed and written by Dhriti Agarwal
- Edited by Lakshmi Ajayan and Dharmesh Ba
Future of Data Sharing:
‘Future of Data Sharing’ aims at designing a playbook for consented sharing to enable financial services in India. The objective of this research is to develop a design toolkit with the upcoming public infrastructure Account Aggregators as the main theme in focus. The toolkit will host resources and assets around designing better user experiences for data sharing and data portability.
Future of Data Sharing is sponsored by Facebook and executed in collaboration with D91 Labs, DICE, Parallel Labs and TTC Labs
Future of Data Sharing by D91 Labs is licensed under CC BY-SA 4.0
Look up our Research Series
About the Research
This documentation is a result of the in-person interview, along with the participants’ consent. The interviews might be conducted in their native languages and translated to English in the best possible way to reach a large audience.
Disclaimer: The identities of people and places in this documentation have been changed to honour the privacy of the participants.
About D91 Labs
This research was executed and documented by D91 labs. D91 labs is an open-source initiative by setu.co to help Bharat build great fintech products. We organise and publish user research, insights, and frameworks for fintech in India. Please follow us on medium for more exciting stories and insights on Bharat.
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