India Plans 1-Month Youth Banking Drive for 400 Million Gen Z as Fintechs Erode Banks' Share
Updated
Updated · Mint · Aug 31
India Plans 1-Month Youth Banking Drive for 400 Million Gen Z as Fintechs Erode Banks' Share
1 articles · Updated · Mint · Aug 31
Summary
October will bring a month-long “Banking for Youth” campaign after Finance Minister Nirmala Sitharaman urged public-sector banks to pull more young Indians into formal banking and build lifelong customer relationships.
About 400 million Indians aged 14-29—27% of the population—are the target, but that cohort is projected to shrink to 346 million, or 20%, by 2050, giving banks a limited window to lock in customers early.
UPI and mobile-first habits have shifted first financial contact to the early teens, often through apps and wallets tied to parents’ accounts, leaving banks competing with neobanks, wallets and other fintech providers for young users.
Digital lenders are already gaining ground: digital NBFCs' share of sanctioned digital personal loans rose to 19% by value and 77% by volume in 2025-26 from 12% and 66% in 2022-23.
The report argues outreach alone will not be enough, with public banks needing faster, cleaner apps and youth-focused products as examples from Revolut, Slice and Singapore’s POSB show digital experience can turn early users into long-term customers.