Authored by Saikrishna Musunuru, Whole - Time Director and CEO, Payinstacard
The concept of financial inclusion in India has always been about access over time. It has been all about expanding access to formal financial services, including opening bank accounts, using digital modes of payment, accessing credit services, purchasing insurance, and even investing. And, on that front, much success has been achieved. In India, there has never been such an elaborate digital payments network. According to the report, Just for one month in May 2026, UPI processed as many as 23.2 billion transactions amounting to ₹29.9 lakh crore.
The report of RBI regarding Payment Systems revealed that UPI transactions account for 85.5 percent of total digital payment transactions in India. These numbers highlight how much financial activities have moved towards digitalization. People can do everything related to banking from transferring funds to paying bills, availing of loans, buying insurance and investing, just from their phones.
This is further accentuated by looking at this trend through the passage of time. As per the statistics presented by RBI in May 2026, the total number of payment transaction volumes in India increased from 6,437 crore in the year 2021 to 26,819 crore in the year 2025. Financial services are no longer restricted to urban areas; consumers belonging to Tier 2, Tier 3, and Tier 4 cities have been using digital transactions, exploring credit, buying insurance policies, and initiating investments. However, despite such impressive development, one thing stands clear: Is accessibility leading to better finances? The answer may not always be affirmative.
Although there has been unprecedented accessibility to financial products, choosing the right one seems to be an increasingly difficult task. People now have more options than they know what to do with. There are multiple UPI apps fighting for attention, there are loan offers flooding the digital platforms, people can choose between mutual funds, fixed deposits, digital gold investments, and much more, and the list of different insurance plans is endless. On top of that, the existence of reward programs, cashback offers, and loyalty systems makes things even more confusing. Our current financial landscape is overflowing with options; however, abundance does not equal clarity.
The issue can be seen especially clearly in Bharat's emerging markets. The consumer might be aware of the concept of mutual funds, but might not know which one suits him or her the best in terms of his or her goals. Similarly, the first-time borrower would receive different loan options without knowing what they actually entail. On the other hand, a young professional might start investing without creating an emergency fund whereas a small entrepreneur might have difficulty figuring out if the loan, credit or cash flow solutions are more suitable for him or her.
In the world of finance, the reaction to consumer demands has been the creation of more products. Any new consumer need results in a new product, feature, or category being created.
Innovation is critical, but the danger exists of solving availability problems without recognizing the problems associated with decision making. Consumers do not need more choices; rather, consumers require more confidence in making decisions among the existing range of choices.
Financial navigation can be defined as the capability of helping people take financial decisions in a rational, prompt, and appropriate way. It means guiding consumers on making decisions instead of offering products. In case a consumer has significant interest-bearing debts, it would be better to offer him/her a plan for repaying the debts rather than giving another credit product.
The gig worker with an unstable source of income may have a need for securing his/her finances prior to investing in the market. The young family may need a proper insurance solution before investing in the higher risk products. Financial navigation in many cases does not mean offering a product, but rather helping people prioritize what they really need.
Now that India’s financial landscape has matured, it’s time to take the discussion further than access alone. India has proven itself capable of providing financial services on a massive scale. The next step is making sure consumers have the wherewithal to cope with this increasingly sophisticated financial landscape. Financial services in Bharat will not be determined by which company has more products. It will be determined by which company makes consumers' choices better. Guidance could very well become the most important financial service there is.
