A smarter way to manage finances for young people! – The New Indian Express


Express news service

BENGALURU: Until a few years ago, a student relied on her parents for her pocket money expenses or on a traditional bank to finance her higher education. However, with the advent of the fintech revolution, the young Indian population aged 18-35 is increasingly turning to instant loan / investment apps to meet their financial needs using smartphones. Over the past five years in particular, hundreds of fintech service providers have targeted GeZ and Millennials to address their personal finance challenges, ranging from getting loans to buy a new gadget to opening a new business. trading accounts.

The pandemic has accelerated digital and financial literacy, according to top fintech analysts. With many people losing their jobs and facing pay cuts, an alternative source of income is seen as imperative, which in turn has fueled the growth of these new age fintech applications.

Take the case of the brokerage start-up Upstox backed by Ratan Tata. The platform has seen a 3-fold growth in customer count in 2020-21 with a total user base now at 4 million. “Of all Upstox customers, 80% are between the ages of 18 and 36, and around 70% are new investors. We have witnessed the maximum number of investors for the first time, ”said Ravi Kumar, co-founder and CEO of Upstox.

Compared to investment banks or asset management companies (AMCs), digitally focused companies like Upstox and other players including Zerodha and Groww offer convenience, more product offerings as well as reduced costs for customers, which goes hand in hand with educating newbies.

These fintech applications and platforms improve accessibility to financial products and simplify and simplify the investment or management of funds. With the KYC process enabled by Aadhaar, customer onboarding through these platforms is completely digital. Big data and data analytics enable them to deliver personalized financial products to their clients.

“Being digital first and foremost in everything we do is in our DNA, and it really helps us grow and create a rich user experience. We have grown rapidly, mainly due to our products and a customer-centric approach. Today, customers are well aware of how to identify a high quality service that meets their needs and provides them with a seamless experience, ”added Kumar.

Agree with Aditya Damani, founder of Creditfair which offers low cost, unsecured point-of-sale loans to customers for purchase in industries such as healthcare, education, automotive and electronics. “Micro-loans to individuals through loan applications have provided access to credit to many underserved customers. For microfinance clients taking joint liability loans, lending apps from banks and microfinance institutions have made digital repayments convenient.

Especially during this pandemic, many migrants who have chosen to set up small businesses have benefited greatly, ”he noted. With nearly 200 million unbanked people in India, the market opportunities for neobanks, which are mostly non-bank financial corporations (NBFCs), are enormous. Gurgaon-based fintech start-up Fyp announced pre-launch enrollment of its fund management product for the GenZ segment between the 11-18 age group last month.

The neo-bank will be online by the end of July, but it has already started to grab the attention of the target audience, which also includes young parents between the ages of 35 and 45. The startup claims to change the concept of pocket money management in India and helps parents ensure their children develop a concept of financial literacy and become financially independent from a young age. Using the Fyp app, children can perform all financial transactions, online and offline, securely through the Fyp app and the Fyp prepaid card.

Safety first
However, the downsides of these burgeoning neobanks alarmed the Reserve Bank of India (RBI) as well as tech giant Google, which earlier this year removed hundreds of these apps from its Play Store, finding them to be infringing. company security policies. Some of the loan applications have also been caught in the police’s nets recently when cases of borrowers’ suicide deaths emerged, with their families alleging that lenders subjected them to social humiliation as well as exploitation. for non-payment of contributions.

“The credit gap can be bridged by nimble fintech start-ups to empower end consumers. But unfortunately, the cost was prohibitive and the collection practices were questionable. Lending during the pandemic has its own challenges, and it has become more and more crucial since the start of the pandemic and street collections have become difficult. This leads to bad debt, ”Damani said.

The pandemic is pushing financial literacy

Brokerage platforms
Zerodha, Upstox, Groww, Angel Broking app, 5 paisa app, ND MoneyEdelweiss app, Stoxkart app.

Various features

Access to a variety of SIPS, mutual funds
Two-factor authentication for secure access to your digital lockers / trading accounts.
Real-time intraday NSE, BSE negotiation in the app interface
One-off registration for opening a trading / demat account (paperless)
Zero brokerage fees / commissions

Best Loan Apps in India
Credy, MoneyTap, Paisalo Digital Liwmited, TrueBalance Decimal Technologies, Cashfree, KreditBee, EarlySalary, LoanTap, EarlySalarY

Characteristics
Access credit from Rs 1,000 to Rs 10 lakh through these channels
Paperless loan application EMIS small ticket Unsecured loans (mostly based on your credit scores)


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