Banking, investments, entrepreneurship: Experts decode South India’s rise

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.