The first half of 2026 has been anything but predictable for India’s BFSI sector. From banks doubling down on AI-led customer experiences and insurers navigating evolving regulations to fintechs recalibrating growth strategies amid tightening profitability expectations, the industry has balanced innovation with caution. At the same time, shifting consumer behaviour, rising digital adoption, and macroeconomic headwinds have continued to reshape how financial institutions engage with customers and allocate marketing spend.
As the year reaches its halfway mark, it’s an opportune moment to take stock of the trends, challenges, and opportunities that defined the sector over the past six months.
According to Sapna Desai, Chief Marketing Officer, ManipalCigna Health Insurance, marketing in the first half of the year remained active and resilient. That steady pace was also reflected in advertising. While investments continued to grow, a gap remained between scale and outcomes.
“What’s different compared to last year is less about the volume of activity and more about its tone. There’s a visible shift towards messaging that feels more consumer-relevant and less product-led. This reflects a maturing category rather than a slowdown,” she says.
The sentiment appears to be shared across the industry. Suresh Gajendran, General Manager, Marketing and Corporate Communications, Bank of Baroda, says H1 2026 has been characterised by a balanced approach between brand visibility and business outcomes.
“The Bank continues to invest in customer-centric campaigns that strengthen trust, drive digital adoption, and support key business priorities such as retail liabilities, NRI business, retail assets, MSME, and digital channels. Marketing effectiveness is increasingly measured through customer engagement, acquisition quality, and product penetration rather than reach metrics alone,” he says.
Somesh Surana, Joint President, Digital Business Group & Marketing, HDFC ERGO General Insurance, notes that the sector saw advertising investments growing by nearly 20%, predominantly in Digital & TV spends compared to the same period last year.
“What stands out is the increased spending by existing players across banking, insurance, mutual funds, wealth management and fintech. Rather than adopting a cautious approach amid economic uncertainty, many brands chose to invest more aggressively to strengthen market share, drive customer acquisition and reinforce brand trust. Overall, the category continues to demonstrate confidence and competitiveness, with marketers viewing advertising as a critical growth lever rather than a discretionary expense,” he says.
While the first half of the year remained steady, it was not immune to geopolitical developments. Heightened tensions in global markets have weighed on economic sentiment, with ripple effects being felt across the BFSI sector.
Global uncertainty casts a shadow
Marketing and advertising budgets are often among the first to come under scrutiny during periods of uncertainty. Campaigns are scaled back, inventory is paused, and media plans are recalibrated.
Desai, however, says the response has not been to reduce spending but to become more deliberate about where and how budgets are allocated, prioritising channels that are measurable and can be adjusted quickly if conditions change.
“For health insurers, there’s an added dimension. Economic uncertainty isn’t an abstract backdrop; it’s something consumers are already feeling acutely. Our research study, India Health Quotient 2026, found that 41% of urban Indians say chasing financial goals is itself a source of stress. In that context, marketing strategy has had to be careful not to add to that anxiety and instead position health coverage as something that eases financial pressure rather than adds to it,” she says.
Not every brand, however, treats marketing as the first expense to cut during uncertain times. Gajendran emphasises that Bank of Baroda continues to view marketing as a strategic investment rather than a discretionary expense.
“The focus has shifted towards optimising media efficiency, leveraging analytics, and ensuring that campaigns support both business growth and customer confidence. During uncertain periods, communication around trust, security, financial empowerment, and customer service becomes even more important,” he notes.
According to Surana, the biggest shift has been from budget expansion to budget efficiency.
“While macroeconomic challenges created uncertainty across industries, BFSI marketers largely maintained their investment levels and focused instead on improving the effectiveness of every marketing rupee spent. This is evident from the category’s nearly 20% growth in advertising expenditure, significantly ahead of overall market growth expectations,” he says.
This measured approach may benefit some media channels more than others.
Where the ad Rupees are going
For ManipalCigna Health Insurance, digital has taken the lead. Desai says social media and online video have emerged as the dominant formats within the company’s digital media mix.
“For health insurance, this mix works well because it’s a category that needs storytelling and context. Social and video formats are well suited to building awareness and trust around a product that people often don’t actively search for until they need it. Performance formats like search continue to play their role for the smaller segment of consumers already in an active buying mindset, but the bulk of the media mix has shifted towards formats that can build a relationship with the audience over time,” she explains.
Not every brand, however, has adopted a digital-first approach. Bank of Baroda continues to follow an integrated media strategy spanning digital, print, television, outdoor, branch branding, and on-ground activations.
“Digital platforms have become increasingly important for customer acquisition, engagement, and product promotion. Regional and vernacular communication continues to play a significant role in reaching diverse customer segments across India. Sponsorships, partnerships, and brand ambassador-led campaigns continue to enhance visibility and credibility, while digital channels support targeted conversions,” Gajendran says.
According to Surana, search continues to be one of the most effective performance marketing channels for BFSI brands, along with online video, OTT and Connected TV. Influencer marketing, particularly through credible finance creators and domain experts, has emerged as a powerful lever.
“The media mix itself has evolved from a predominantly awareness-led model to a more integrated framework. Brands are combining premium video environments for awareness and trust building with search, performance marketing and first-party data activation to drive conversions. While television remains important for large-scale campaigns, digital channels are now leading both reach and performance outcomes across the category,” he says.
While well-established media plans can help attract customers, the cost of customer acquisition and retention remains high. As a result, brands are increasingly exploring strategies that can deliver more efficient growth.
For Desai, the answer lies in moving beyond one-time conversions and focusing instead on lifetime relevance.
“Rather than competing purely on price or one-time offers, the focus is shifting to retention, renewals, and word of mouth from existing policyholders. Acquiring new customers in a market where, as highlighted in the India Health Quotient 2026, 38% of urban Indians neither own nor intend to buy health insurance requires building trust well before the point of purchase, not just at it,” she says.
At a time when personalisation has become one of the most valuable tools for customer acquisition, Bank of Baroda is following a similar path. Gajendran says customer insights, data analytics, and targeted marketing have significantly improved acquisition efficiency.
“Existing customer engagement remains a strong growth driver through cross-sell and upsell opportunities across deposits, loans, wealth, insurance, and digital banking services. Branch networks, digital channels, and relationship banking continue to work in tandem to improve conversion and retention outcomes,” he says.
For Surana, BFSI marketers are shifting their focus from customer volume to customer value.
“Brands are increasingly leveraging first-party data and CRM ecosystems to improve targeting accuracy and personalise communication. Predictive analytics and audience modelling are helping identify high-value prospects with a greater likelihood of conversion and retention. Another important trend is the adoption of omnichannel customer journeys that connect awareness, consideration and conversion seamlessly across touchpoints. Many marketers now recognise that retaining and deepening existing customer relationships often delivers better returns than continuously pursuing new acquisitions,” he says.
Lessons that will shape H2
As the industry wraps up the first half of the year, marketers are looking to carry forward the lessons learned into H2.
According to Desai, the biggest learning has been structural rather than campaign-specific. While India’s insurance penetration has remained largely stable over the past two years despite steady premium growth, it signals a maturing market where traditional growth levers are no longer sufficient on their own.
“This reinforces that growth will be driven not just by increasing reach but by strengthening relevance and building deeper, sustained trust with consumers.
“On the media side, with digital advertising in India continuing its strong growth trajectory, H2 planning is likely to double down on digital formats, but with sharper messaging focused on why health coverage matters at different life stages rather than just product features. For health insurers, the H1 takeaway is that closing the trust gap matters as much as closing the reach gap,” she notes.
For Bank of Baroda, H1 reinforced the importance of customer-centric, insight-led communication. Gajendran believes integrated campaigns that combine brand storytelling with clear business objectives have delivered stronger outcomes.
“Digital engagement and data-driven decision-making will continue to shape H2 marketing initiatives. Going forward, Bank of Baroda will continue focusing on customer experience, digital adoption, financial inclusion, and relationship-led growth while maintaining strong brand visibility and trust,” he says.
One of the clearest learnings from H1 is that trust remains the single most important driver of growth in financial services, says Surana.
“Broad targeting approaches are becoming less effective, while strategies powered by first-party data, contextual relevance and intent-based signals are delivering stronger results. Perhaps the most important lesson is that sustainable growth comes from balancing brand building with performance marketing. The most successful BFSI marketers are no longer treating these as separate disciplines but are integrating them into a single, connected marketing strategy designed to drive both immediate results and long-term brand equity,” he says.
Surana expects marketers to increase investments in data-driven audience planning, personalised customer journeys, premium video platforms such as OTT and Connected TV, and AI-led campaign optimisation.
As the BFSI sector heads into the second half of 2026, the focus is expected to remain on balancing growth with efficiency amid an increasingly uncertain global environment. While geopolitical developments and economic volatility may continue to test marketing budgets, brands appear more inclined to optimise rather than retreat. With digital becoming more central, personalisation moving from a differentiator to a necessity, and trust emerging as the industry’s strongest currency, H2 is likely to be shaped less by how much marketers spend and more by how effectively they connect with increasingly discerning consumers.
