Over 550 mn UPI users, 69 mn MF investors and 50 mn stock buyers — why are millions still not investing? Report decodes — SkimNews
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- EY India reported that over 550 million people use UPI, while only about 62 million invest in mutual funds and nearly 50 million participate in equity markets, highlighting a major disparity in financial behavior.
- EY India stated that the barrier to investment is no longer access to infrastructure but rather perceived complexity, volatility, and unfamiliarity with market-linked products among financially capable households.
- EY India emphasized that trusted, personalized advice aligned with individual risk profiles and financial goals is missing, preventing many digitally active users from entering long-term investment channels.
- India's digital public infrastructure, including Aadhaar, UPI, and Account Aggregator, has created scalable digital rails that can now be extended to simplify onboarding and data sharing for investment platforms.
- Artificial intelligence could be layered onto India’s DPI to deliver personalized financial recommendations at scale, helping users understand goals and make informed decisions sustainably.
- UPI recorded 24.07 billion transactions in September, showing a slight monthly dip but a 23% year-on-year growth, underscoring continued expansion of digital payments within and beyond India.
- UPI is now accepted in 11 countries including Greece and the Maldives, marking its growing global footprint as a real-time payment system.
Why it matters: With 550 million UPI users but only 62 million mutual fund investors, the untapped potential for wealth-building in India is massive. Financial institutions must shift from product distribution to guiding outcomes—otherwise, digital access alone won’t close the investment gap. The cost of inaction is sustained under-investment despite capability.
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