South India’s financial landscape is changing as savings, investments, banking and entrepreneurship become increasingly connected. Experts at the India Today Conclave – South 2026 said the region already has a strong financial ecosystem, with economic growth creating new opportunities for banks, financial institutions and investors.
C Balagopal, Chairman, Kerala State Industrial Development Corporation and former Chairman of Federal Bank, said the southern states have a diversified economy, with different regions developing their own centres of economic activity. He said finance generally follows economic growth, and the South has several growth centres rather than depending on a single economic engine.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said Indian households are increasingly moving from traditional savings in bank deposits and gold towards financial market investments. The rise in direct stocks, mutual funds and systematic investment plans reflects this shift. He also highlighted the importance of remittances and said these funds could contribute more to economic growth if channelled towards investment and productive activity.
Dr K Paul Thomas, MD and CEO of ESAF Small Finance Bank, said the South already has a deep banking network and stressed the need for financial institutions to focus more on financial education and investment awareness.
Ashish Chandak of Manappuram Finance said organised finance is helping turn household assets such as gold and savings into productive capital, supporting entrepreneurship and business activity.
Dinesh Nair, director, Equirus Wealth, explained how India’s wealth management landscape is undergoing a significant shift. "Wealth was traditionally concentrated in the metros, but we are now seeing substantial wealth emerge in smaller cities and towns as well, prompting financial services and wealth advisory firms to expand their presence beyond the major centres," he said. Southern India has a distinct advantage, given its high levels of education, entrepreneurial culture and successful business enterprises that have created wealth for generations. As this wealth grows, the need for professional investment, financial and succession planning becomes increasingly important. The recent success of IPOs emerging from companies in southern cities is a strong example of how wealth creation is spreading beyond the traditional metropolitan financial hubs, he said.
