<aside> 💡 Opportunity Identified: Create a comprehensive learning journey to tackle the abandonment rate caused by the overwhelming and un-curated sources of information on financial literacy

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🤔 Charter

Conduct user research to understand the specific pain points and areas of confusion users face when exploring stock investment on Groww leading to users abandoning the app post Signup.

✔Task List

1. Understand Industry Landscape
2. Understand User Personas
3. Define JTBD
4. Problem Identification
5. Problem Prioritization
6. Formulating Solutions
7. Wireframing

Market Research / Competitive Research

• The India Mutual 5und Industry size is expected to reach approximately INR 5.41 lakh crore in 2024 and grow at a CAGR of greater than 18% to reach approximately INR 12.38 lakh crore by 2029.
• Mutual Funds are on of the top choices for financial investments among a majority of people.
• Association of Mutual Funds in India (AMFI) said that as of January 31, 2024, as many as 79.2M SIP accounts were active through which individuals were investing in various mutual funds.
• SIPs have become a primary investment option, at least for young Indians, and pushed the industry’s growth in recent years.
• Money flowing into MFs through SIP Route now accounts for 20% of the total assets at INR 10 Trillion, up 9% since 2018.
• Young investors have increased significantly post the pandemic. 24% of the BSE users are between the ages of 20-35; this trend is ongoing.

• The surge in mutual fund assets to nearly 60 trillion rupees reflects the growing confidence of investors in the Indian market. The diverse inflows across various fund categories, coupled with record contributions to SIPs and sectoral funds, highlight the robust health of the industry. As India continues to attract global and domestic investors, the mutual fund industry is poised for sustained growth, offering a plethora of opportunities for investors.

groww market share.avif

• The journey of India’s mutual fund industry is nothing short of extraordinary. It took five decades to build the first 10 trillion rupees of assets since the industry’s inception in 1964. However, the recent pace of growth is unprecedented, with the last 9 trillion rupees added in less than six months. This rapid increase highlights the dynamic nature of the market and the increasing participation of investors.

• Future Outlook: The remarkable growth of India’s mutual fund industry is a testament to the resilience and adaptability of the Indian financial market. Political stability and sustained economic growth create a conducive environment for investments. Global growth, supported by a rebound in global trade, adds to the positive outlook for Indian capital markets. The overall outlook remains optimistic, supported by strong fundamentals and favourable demographics.

• Key Players:

  • Established Firms: Companies like Zerodha, Groww, Upstox, and Paytm Money dominate the market with large user bases.
  • Traditional Financial Institutions: Banks and traditional financial institutions are also entering the market with their own apps, such as ICICI Direct and HDFC Securities.

Competitive Landscape

Groww user count.avif

Bargaining Power of Buyers: High

• Buyers can easily switch brokers due to the homogenous nature of broking services

Bargaining Power of Suppliers: Mid

• Brokers rely on them for market access, Especially IPOs and small-cap stocks

Rivalry amongst existing firma: High

• Alternative investments and discount brokerage models pose a significant threat to reducing the market share and profitability of traditional brokers

Threat of new entrants: Mid

• The market sees moderate to low threats due to new trading technologies and entry plans of foreign brokers.

Threat of substitution: High

• Alternative investments and discount brokerage models pose a significant threat to reducing the market share and profitability of traditional brokers

Challenges of existing platforms

• New investors often get intimidated by complex financial jargon
• Most users do not/cannot afford to learn through iterations
• It is hard for users/investors to keep track of current market trends without referring to other sources
• It is tough to establish a sense of trust and security without being a bank
• Keeping new users engaged

User Research

Objective- understanding driving factors for users to abandon the Groww app after signing up.