ITEM: The middle-aged and elderly population will drive internet connectivity growth in India over the next few years, according to research from a fintech firm who also says that growth is also great news for fintech firms.
The report from automated financial services company Robocash Group says that while young adults and adults (18-34 yrs old) currently comprise the largest share (35%) of all Internet users in India, that share is actually down from 61% in 2013. While that segment is still growing in terms of raw numbers, the segments for teenage (12-17 yrs old), middle aged (35-54 yrs old) and elderly (55 yrs old and above) are growing in terms of market share as well as absolute numbers.
The report expects that trend to continue, with the 18-34 group continuing to decline to 29% by 2025. The middle-aged segment will account for 32% of India’s internet population by then, and elderly users will account for 12% (compared to just 6% in 2019). Together those two groups will account for 66% of the growth in the number of Internet users in the country by 2025, the report says.
Robocash credits that projected demographic shift to government programs going digital and the necessity of the middle-aged and elderly groups to access those services online.
The report also says that this shift will have a significant impact on fintech services in India:
This change in the structure of Internet users will have a direct impact on the fintech industry, increasing the significance of the middle-aged and elderly population as a target audience. 11% of middle-aged and 14% of seniors will almost certainly start using fintechs frequently or consistently. In this regard, fintech companies will presumably turn to online education and training of the middle-aged and elderly generations in order to expand the target audience.
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