KOCHI: Kerala’s financial sector has emerged as a powerhouse in India’s Banking, Financial Services and Insurance (BFSI) landscape — commanding nearly 90% of the country’s organised gold loan market, holding over Rs 3 trillion in NRI deposits, and setting benchmarks in cooperative banking reforms, according to a new report by KPMG in India and the Confederation of Indian Industry (CII).

Titled “Improvisation Driving Performance – How the Financial Services Sector in Kerala Has Grown to Pack a Punch and Influence the National Narrative”, the report was released at the CII Kerala Banking & NBFC Summit 2025 held in Kochi on Friday. It positions Kerala as one of India’s most agile and innovative financial ecosystems, seamlessly blending traditional strengths with digital transformation.

Kerala’s gold-loan-focused NBFCs — several of them household names across India — collectively hold loan books exceeding Rs 1.2 trillion and have sustained 12–15% annual growth despite tighter regulations. Their success, the report notes, lies in marrying traditional underwriting practices with advanced analytics and multi-channel digital platforms, vastly improving rural credit access.

In NRI banking, Kerala’s regional and private sector banks dominate, with deposits crossing Rs 3 trillion in early 2025 and growing at a steady 9.4% CAGR over five years. These institutions have not only built national leadership in remittance management but also created sophisticated, tech-driven service frameworks catering to the state’s vast global diaspora.