Technology is making investments simpler

Things like keeping track of one’s payments and expenses, researching investment opportunities have become easier for investors

India has witnessed a massive surge in stock market investors in the last few years. From March 2019 to November 2021, the number of Demat accounts in India has more than doubled to 7.7 crores from 3.6 crores. This increase boils down to various factors such as more awareness created by the regulatory authorities, increased focus on financial planning during the pandemic, readily available information online, etc. Yet, none of this is possible without the quintessential - technology. Technology has made investing more accessible for people looking to start their investing journey while simplifying several aspects of investing. Things like keeping track of one’s payments and expenses, optimising budgets, and researching investment opportunities have become easier for investors.

The world is in the palm of your hands: The conveniences ushered by technology over the last few years were almost impossible to imagine up to a decade ago. From the initial lack of trust in buying products online to purchasing almost everything from their smartphone, the Indian consumers’ confidence in the online medium has grown by leaps and bounds. Today, India has 70 crore internet users and 60 crore smartphones, and we are adding 2.5 crore new smartphones per quarter. Thanks to relatively inexpensive internet data, we have the world’s highest mobile data consumption rate. Due to UPI interconnectivity, we also have the highest number of digital payment transactions globally, highlighting India’s trust in online payments.

Simplifying financial planning: With easy access and readily available information at their fingertips, many millennials have started leveraging technology to manage their finances effectively. We now have several platforms to help us improve our financial well-being by making the most of our money. Some prime examples of this are:

Payment apps

In 2020, India already had around 16 crore mobile payments users and is only likely to grow. This growth is because these apps offer several convenient services, such as payment histories, that can help people keep track of their payments with ease. By automating regular payments, these apps help avoid defaults and penalties, ensuring better utilisation of limited resources.

Budgeting apps

Budgeting apps have gotten popular, especially with new investors, as they let them monitor their inflows and outflows. They can keep a tab on their expenses, ensuring that they are not going overboard. They can even put their funds under different baskets to use for specific purposes. These apps come in handy when sticking to the budget is the goal as they notify the investors of any unusual spending.

Knowledge platforms

Young investors use online resources before making any crucial financial decision. Several investors use online courses, podcasts, and blogs to do their homework and make informed decisions. Basic financial know-how goes a long way in improving the quality of financial choices made.

Disciplined investing

Technology has made it possible to schedule SIPs where the instalments are made automatically without the investor’s need to intervene. SIPs bring much-needed disciple to create wealth in a pocket-friendly way.

Goal-based investing

Several online tools are now available to help investors fulfil their financial goals. With tailor-made solutions, investors can plan their investments based on their risk appetite and life goals. Based on the age, investment time frame, investment goals, and the risk appetite of the investors, these tools design a customised portfolio.

Behavioural insights

By helping them understand their money habits, several apps enable investors to identify the changes they need to make for achieving their goals. Monitoring expenses, savings, and investments provide insights into the behavioural changes one needs to undergo to become a better investor.

With access to a plethora of digital financial tools, investors can now effectively manage their finances. Regardless of your financial situation and goals, take advantage of technology to manage your money better.

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