Social Security or Insecurity is a great cause for the development of the Finance market along with financially engineered products. The issue is more prominent when the finance market is open but regulated, big market and the presence of a large private sector companies. India would be the suitable example in this case.
Some Brief Characteristics Of India with respect to the Finance Market:
1. Large Financial market yet to be trapped
2. A big no. of customers
3. Foreign players are welcome with a bit of regulations
4. A knowledge Economy with increasing education and Internet penetration
5. Economic Liberalization has been implemented, so private companies are dominating
6. Less Social Security on part of the Govt.
7. Expenditure driven economy and this is more prevalent with the young earning generations
8. A well grown stock market competing with the other world indexes
The above points could shed the light as to why more and more financially engineered products are entering in to the Indian market. E.G: Mutual fund, Pension funds, Derivatives, Insurance, Forex Funds, Bonds, Money market instruments and so on. The style of money management has been changed drastically from that what had been prevailing in 20 or 30 years ago. This style of money management has received a big boost with the falling rate of interest in banks.
In addition, the growing price level, expenditure level, status maintenance, no old age pensions etc. also have kept people busy towards active money management. And US type of model would be more applicable as the Indian Economy move global.