Transforming BFSI: Overcoming cultural barriers with neuro-marketing solutions

The inaugural edition of FINIXX Summit and Awards 2024, held recently, saw Sandeep Walunj, Group Chief Marketing Officer, Motilal Oswal Financial Services, deliver an insightful keynote address on ‘Transforming BFSI – The Cultural Barriers & A Neuro-marketing Solution’. In his presentation Walunj highlighted why financial literacy and investment penetration remain low in India, despite the universal desire for financial growth. By dissecting deep-rooted cultural perceptions, human behavioral tendencies, and neurochemical influences, Walunj proposed innovative solutions for driving greater adoption of financial services.

Walunj began by addressing a fundamental paradox: “Everyone wants to be rich, yet very few are satisfied with their financial planning.” Drawing from a study conducted by Future Brands, he explained that India’s cultural narrative around money has historically discouraged its proactive management.

Money, since the dawn of civilization, has been viewed as a fire – a powerful, but potentially dangerous force capable of dissolving social hierarchies and values. In response, societies, including Indian culture, imposed moral and social boundaries on wealth. These include:

Frugality as a Virtue: A cultural emphasis on minimalism and saving over abundance.

Money as Auspicious, yet Volatile: Wealth is often seen as a blessing, out of one’s control, symbolized by the goddess Lakshmi.

Segregation of Wealth and Enjoyment: Participation in traditions and festivals often does not require money, reinforcing a cultural distance from financial indulgence.

He noted how these ideologies have shaped two broad societal classes: the money outsiders (the mainstream population) and the money insiders (communities adept at wealth management, such as Marwaris and businessmen). While the insiders separate business and personal wealth and understand the time value of money, the majority remains wary of financial instruments beyond security-based options like insurance or fixed deposits.

To address these ingrained barriers, Walunj turned to neuromarketing – the study of brain responses to marketing stimuli. He explained the evolution of the human brain, which comprises four layers: the reptilian brain (instincts), the mammalian brain (emotions), and the thinking brain (rationality). While the rational brain, responsible for conscious decision-making, holds the key to overriding cultural conditioning, it is the hardest to activate.

Walunj noted, “95% of our daily actions are reflexive or habitual. Activating the thinking brain requires motivation, trust, and comfort.” This is where neurochemicals, such as serotonin, play a vital role. Serotonin, the “trust hormone”, is secreted when individuals feel familiarity, safety, and cooperation, creating an environment conducive to rational financial decision-making.

Walunj concluded his address with actionable steps for marketers in the BFSI sector to break cultural barriers and activate the thinking brain:

Drive Familiarity: Repeated messaging builds stronger emotional bonds, fostering acceptance and loyalty. Brands must consistently communicate and reinforce their value propositions.

Promote Helping and Cooperation: Brands seen as contributing to society (for example, Tatas) build trust and credibility.

Ensure Clarity and Transparency: Simplify communication to reduce cognitive load and make financial concepts accessible to all.

Demonstrate Honesty and Consistency: Reliable and authentic actions over time lead to trust and emotional engagement.

Create Comfort and Accessibility: Delivering exceptional customer experiences and making users feel welcomed drives lasting relationships.

Sandeep Walunj’s keynote underscored the significance of understanding cultural barriers and leveraging neuromarketing techniques to enhance financial product adoption. By building trust, simplifying processes, and driving familiarity, BFSI players can help bridge the gap between aspiration and action, ultimately enabling financial growth for millions of Indians. “The key to financial literacy lies in activating trust and clarity, and helping people consciously engage with their money,” he concluded.

These are edited excerpts. For the complete keynote address please watch below:

https://www.youtube.com/watch?v=48hfZskro4k

Also Read: Transforming the transport sector – Removing roadblocks for growth