Fintech is defined as a confluence of monetary services and new technologies so as to enhance financial offerings and services. consistent with the info of 2019, fintech adoption in India grew to 87 per cent in India as compared to 52 per cent in 2017, as per EY Global FinTech Adoption Index 2019. Since the turn of the century, the meet of finance and technology has played a serious role in our daily lives. From paying mastercard bills to lending to advisory to investing, no financial sector is stop from the influence of technology. The pandemic year has expedited the adoption of fintech, and it’s now, in fact, become a trend. This trend has made a smooth process for consumers and repair providers. With the birth of digitisation, personal financial solutions are now being offered on smartphones. This helps the user to form informed financial decisions.
A wide array of fintech offerings is reforming the ways of managing personal finance. This includes investing, insurance, banking, payments, loans, and therefore the like.
Let’s check out the a number of the factors affecting the ways of managing personal finance:
Wealth management: With the arrival of fintech, the wealth management sector has led to the event of digital wealth management services. Robo-advisory has played a revolutionary role for wealth management because it provides advisory with the utilization of algorithms. It also makes the method of investing in various asset classes a smooth one. Additionally, it provides a tailored experience and services for people as per their individual needs.
Insurance: Technological developments and changing consumer behaviour has brought a huge change within the insurance sector. Insurtech may be a category of fintech through which browsing for insurance policies online and lodging an claim are heading down the trail of great convenience. AI, block chain management and data analytics used for risk management, claims management, claim settlement, KYCs, and background checks have revolutionised the insurance business.
Payments: because of fintech that have the speed and agility in addressing needs of the consumers also as come up with new solutions for existing challenges within the payment space, we are now well beyond the necessity of barter. However, with the advancement of technology, it’s now time to maneuver to a cash-and-card-free future. Digitisation within the payment sector has moved the planet to contactless spending. Highly secured payment mechanisms are getting a part of managing personal finance. Associating UPIs, mobile wallets, barcode scanners with point-of-sale technologies have made payments comfortable.
Lending in marketplace: Also referred to as peer-to-peer lending; the way an Airbnb isn’t one’s house but offered for rental by providing a standard platform for owners who are willing to rent and tourists who are trying to find homes, marketplace lending works during a similar way – by providing a platform to compile investors who are willing to lend and other people who need a loan. For people that want to require loans, their creditworthiness is measured by the means of knowledge analytics through data collection. This helps to form informed decisions, and further reduces time and energy . Technological advantages amplify this experience for applicants also as lenders.
Gone are the times of managing personal finance without the arrival of technology. With the increase of the technological aspect, fintech offers many new alternatives to individuals and corporates by providing enriching customer experience, smoothened processes and a layer of quickened and efficient financial transactions across various platforms.