The consumer investment revolution through FinTech refers to the transformation of how individuals invest and manage their finances through the use of financial technology (FinTech) platforms and services.
FinTech solutions have disrupted traditional investment and financial services in several ways, making investing more accessible, efficient, and user-friendly for consumers. This blog mentions the key aspects behind the revolutions.
Innovations and technology behind the revolution:
Mobile apps and user-friendly platforms have made it easier for consumers to invest, trade, and manage their portfolios from the convenience of their smartphones. These platforms often offer seamless user experience and real-time data.
FinTech companies use artificial intelligence and machine learning to provide personalized investment advice and insights. This helps investors to make informed decisions and manage their portfolios in a better way.
AI-driven robo-advisors use machine learning to provide personalized investment recommendations based on an individuals financial situation, goals, and risk tolerance. Customized financial solutions can help consumers create tailored investment strategies.
Big Data Analysis The ability to process and analyze massive amounts of financial data in real-time has enabled investors to spot trends and opportunities that were previously difficult to identify.
Opened the door for new Investment Opportunities
Technology in finance and Investments does not only give consumers convenience and innovations it brings new assets classes and opportunities to diversify their investment.
- Cryptocurrency: Digital Financial Solutions (DFS) have facilitated the rise of cryptocurrencies and blockchain technology. Investors can now buy, trade, and hold cryptocurrencies, diversifying their portfolios with digital assets.
- Peer-to-Peer Lending: Digital banking solutions have enabled peer-to-peer lending, allowing individuals to invest in loans to other individuals or small businesses. This provides an alternative investment avenue, potentially offering higher returns compared to traditional savings accounts.
- Real Estate Crowdfunding: FinTech platforms have made it easier for investors to participate in real estate projects through crowdfunding. This allows individuals to invest in real estate with relatively small amounts of capital.
- NFTs (Non-Fungible Tokens): NFTs represent ownership of unique digital assets and are used in various sectors, including art, gaming, and collectibles. Consumers can invest in NFTs, and they provide a new avenue for asset ownership and trading.
MobiFin is evolving with the trend of providing such features to the market by offering goal-based savings (GBS) and automated saving roundups.
Mostly everyone, especially during childhood days, would have used the good old way of saving loose coins and small amounts of money. The term “piggy bank” is believed to have originated from the use of a type of orange clay called “pygg” in the Middle Ages, which was used to make jars and containers for storing money. modern technology has also led to digital alternatives for saving money which MobiFin terms it as Goal Based savings.
Goal Based Savings (GBS) is a feature that enables end users to save money for a specific goal of their life. Consumers by using competent digital financial solutions can set more than one goal in terms of the amount to be saved and systematically achieve the goal by savings some money regulatory towards their goal(s).
Customers have the option to systematically save funds towards their goals by scheduling transfers daily/weekly/monthly with designated amounts. The system will automatically transfer the funds from their selected Pouch to the GBS Pouch. Customers are allowed to create multiple goal-based pouch to manage their savings effectively. Additionally, instead of scheduling they can also choose to manually allocate funds towards their goal-based savings.
The balances of users who used Digit’s smart automated transfer capabilities.
increased by an average of $217 per month & Digit users who set multiple savings goals
deposited an average of $114 more into savings over the first five months than users who only
set one goal.
(Source: Financial health Network report, July 2022)
Apart from GBS, Automated Savings and Roundups feature to automatically save or invest your spare change or a percentage of your purchases or transactions through the application. This helps individuals using digital banking solutions to build wealth over time without even realizing it.
With Future planning of AI based Personalized Financial Planning with analyze spending habits, income, and financial goals to generate tailored financial plans for customers, MobiFin is also on track to the investment products revolution trend.
Overall, FinTech has brought significant innovation and convenience to consumer investment and the increased use of mobile technology has only aided in this process, has ushered a new era of financial accessibility and opportunity. The impact of technology on investment has been transformative, enabling individuals to take greater control over their financial futures and make informed decisions. This trend is likely to continue, and the future of consumer investment in technology holds immense promise.
