The term millennials, also known as generation Y, refers to individuals who were born between 1981 and 2000. Currently, at 440 million, millennials make up about 34 per cent of the population of India and 46 per cent of the workforce.
Because they grew up with the internet, cell phones, and social media applications in a more connected world than any generation before them, technology is of paramount importance to them and it is no difference when it comes to managing finances. It comes as no surprise to learn that when they get to handle something as important as personal finance, Gen Y would naturally turn to technology to improve their financial literacy, resolve their financial queries, and to sort out their finances.
Millennials are increasingly using financial apps and other platforms to help streamline their finances and reduce the money management burden.
Role of fintech in shaping the future of capital markets
Fintech is a combination of technology in finance. As India is undergoing a complete digital transformation, the online financial marketplace is playing a key role by promoting the financial inclusion of people from different segments, such as individuals, small and micro industries. The financial marketplace has a common portal where users can compare and access a host of financial services offered by multiple banks, insurance companies, and AMCs.
In fact, online portals are beyond comparing and applying for financial services; these platforms offer proper guidance from beginning to end. The portals allow the customer to apply for services online with required details based on which they receive competitive offers from interested service providers. With the infusion of information technology in finance, applying for a loan, buying insurance and making investments online is no different from shopping and booking appointments online.
In the last 2 years, fintech industry has made a great presence in India, making the country the world’s fastest-growing fintech ecosystem. Online financial marketplace has been simplifying managing and growing wealth through automation, data science, and artificial intelligence. As per KPMG estimates, the value of Indian fintech will reach $73 billion by 2020. The predicted compound annual growth rate (CAGR) of Indian fintech market is around 22%.
Financial marketplace and millennials
The new digital technology has provided new opportunities for financial institutions with innovative wealth management models. Now wealth management providers can offer all their services online. While the older generation prefers traditional ways like personal interaction and mail, millennials interact through apps and other online platforms with their service providers. Online financial marketplace leverages new technology to deliver products and services to their clients and hence offer effortless and liquid user-experience via multiple channels.
The young generation has a higher preference for technology such as websites to seek advice or information. Most of the visitors on financial websites are millennials. In India, there are a number of financial apps and websites used by young people to access several products and services across lending, insurance, and investment.
There are a wide number of fintech apps that help users to make informed decision while investing their money, such as Afinoz, Sripbox, Piggy, KTrack by Karvy, ETMoney by Times Group, and Fisdom, and a lot more.
By Rachna Suneja, CEO & Co-Founder of Afinoz.com