Modern Age Fintech Products Are Gaining Traction

Niyogin_Fintech_Limited_Modern Age Fintech products are gaining traction

Modern-day fintech solutions have seen a phenomenal rise in popularity and usage in recent years. These cutting-edge financial solutions are revolutionizing the way individuals and organizations handle their finances. Several significant elements are responsible for fintech’s quick growth:

Fintech is increasingly accessible to people of all ages. Fintech apps that aid money management and investment are popular among Generation Z. Millennials are tech-savvy, and they are rapidly becoming interested in financial goods. Boomers are learning to use mobile apps as well, but they prefer the safer financial products they are accustomed to.

  • Neobanks’ hyper-personalized products

In 2022, Indian neobanks’ funding increased fivefold. Its investments are estimated to total $215 billion by 2023. Neobanks are popular among Gen Z workers who have recently entered the labour sector. They prefer individualized financial solutions that are both innovative and rewarding. Traditional banks are also considering Neobank agreements to provide hyper-personalized goods.

  • AI-Based Digital lending

The Buy Now, Pay Later trend is gaining traction because it offers a much better alternative to the elusive credit card. Digital loans are rapidly expanding, with more than $9 billion invested in the last five years. Banks can increase their reach thanks to AI-based credit evaluation and assessment technology. As financial inclusion becomes more viable, financial institutions will be able to attract more consumers. To accommodate rising credit demand, the banking sector is swiftly innovating, but the shift must be approached with caution and proper capital buffers.

  • New-Age Wealth Tech

Digital banking is dramatically disrupting investment products in India. Baby boomers preferred to invest in physical assets. Gen Z now wishes to gain more from financial markets by utilizing digital payments. The number of active Demat accounts climbed by 63% in 2022, reaching 89.7 million. These cutting-edge tools streamline investment options by allowing access to mutual funds, peer-to-peer investing, equities, and everything else. Again, AI-based investing recommendations ensure that the younger generation can invest like an expert without having to acquire all the jargon.

  • Alternate Funding Platforms

Instead of relying on traditional banks and investments, startups are now seeking fresh and innovative finance methods. Crowdfunding platforms enable individuals to collect funds to address their financial requirements. Many banks, too, are active in crowdsourcing. Small businesses and start-ups that have obstacles with traditional finance methods prefer to use these crowdfunding solutions.

  • Asset and Portfolio Management using Robo Advisors

Asset and portfolio management with robo-advisors is predicted to grow at a CAGR of 22.11% from 2023 to 2027. The number of users will exceed 44.949 million. The COVID-19 pandemic impacts are responsible for the huge increase in robo-advisors. They manage a user’s portfolio by assessing their financial condition, future goals, level of risk, and other preferences. Leading financial institutions are collaborating with AI firms to develop powerful robo-advisors that can eliminate the need for human participation. Depending on their demands, the user can select fund-based, equity-based, or overall wealth advisory.

Modern-day fintech products are clearly altering the financial environment as they gain traction. Their ability to fill existing gaps in traditional financial services, along with their capacity for ongoing innovation, places them at the vanguard of the changing way we handle, access, and interact with our money.

Leave a comment

Your email address will not be published. Required fields are marked *