Terragni Consulting’s EAS 2026 Study Highlights a Confidence Crisis in India’s Financial Services

The Ease of Engagement Score (EAS) 2026 study, a pan‑India neuroscience‑based assessment conducted by Terragni Consulting, finds that while digital adoption has removed physical barriers to banking, insurance and investments, a growing confidence gap now limits consumer engagement. The study applies consumer neuroscience and behavioural science to evaluate how customers cognitively process and emotionally respond to financial journeys across health insurance, life insurance, mutual funds and personal loans.

Key Findings on Access vs. Confidence

  • Health‑insurance claim settlement stands at 89%, yet penetration fell from 4.2 % to 3.7 %, leaving more than 430 million Indians uninsured, according to IRDAI and the National Insurance Academy.
  • A LocalCircles survey cited in the report indicates that nearly 69 % of policyholders have experienced claim rejections or partial approvals, reinforcing fear and mistrust despite high settlement rates.
  • Mutual‑fund investors often receive redemption proceeds but remain uncertain about timelines, deductions or processing stages; the industry manages over ₹75 trillion in assets under management (AUM) per the Association of Mutual Funds in India.
  • RBI’s Banking Ombudsman data show loan‑related complaints rose 43 % year‑on‑year to 85,281 cases, while overall banking complaints surged 68 % to more than 934,000 cases, with borrowers citing uncertainty around approval timelines, eligibility logic and bundled products.

Structural Business Challenge

Terragni’s EAS framework measures three dimensions – Ease of Access, Ease of Ability and Ease of Aspiration. While digital infrastructure has largely solved access barriers, customers continue to struggle with understanding processes and feeling secure enough to act. The report notes that 57 % of relationship managers feel pressure to sell unsuitable products, and 51 % fear job loss if sales targets are not met, indicating that friction is embedded in internal incentives as well as digital interfaces.

Economic Implications of the Confidence Gap

The study frames financial friction as an economic challenge: reduced insurance adoption, weaker investment participation, lower credit utilisation and diminished entrepreneurial risk‑taking collectively constrain inclusive economic growth despite a robust financial infrastructure.

Dark Patterns Driving Friction

The report identifies “dark patterns” such as hidden fees, jargon‑heavy documentation, complex surrender penalties, forced bundling (e.g., “No Policy, No Loan”) and multi‑step processes that exhaust customers into compliance.

Estimated Value of Reducing Cognitive Friction

Terragni estimates that eliminating cognitive friction could unlock 25‑35 % higher customer lifetime value and enable financial institutions to reach hundreds of millions of under‑engaged users.

Roadmap for Transformation

An 18‑month transformation roadmap is proposed, urging institutions to shift from transaction efficiency to customer empowerment through:

  • Transparency dashboards providing real‑time visibility into approval stages.
  • Predictive communication systems that pre‑emptively inform customers of next steps.
  • Simplified language interfaces and AI‑led financial guidance tools that help customers understand decisions in real time.

The report warns that traditional financial institutions have a 12‑18 month window before clarity‑led digital‑native competitors reshape customer expectations.

Conclusion

Terragni Consulting concludes that the future of India’s financial services will be defined not merely by technological innovation but by the ability of institutions to simplify complexity, build trust and reduce cognitive friction, thereby converting access into confident engagement.

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