In the contemporary landscape, embarking on the journey of investing, growing wealth, and managing assets has been remarkably simplified, necessitating only a bank account, disposable income, and a smartphone. This paradigm shift represents a profound departure from the not-so-distant past when achieving these objectives appeared insurmountable. Just ten years ago, the investment process entailed laborious paperwork, multiple visits to financial institutions, enduring lengthy queues, and waiting extended periods for application processing.
Compounding these challenges was the scarcity of reliable information concerning investment products and the pervasive problem of agents misrepresenting opportunities, resulting in an overall nightmarish experience.
Millennials, being a digitally naive generation that are just as comfortable with apps as they are with pen and paper have adopted an entirely different attitude towards the art and science of investing, in no small part due to the fallout from the pandemic.
The long days and weeks of continued isolation and demanding workstyles, coupled with the constant news of death and destruction jolted them to their senses and sparked a new movement of investing. Technology, being deeply integrated into the financial system today has enabled the flow of money such that investing is as easy as turning a switch.
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Offering real-time investment advice
Wealth management is no longer a niche phenomenon as formerly prominent wealth managers are now setting up their own tech-enabled wealth management platforms. General AI and technology penetration allow these platforms to codify their investment theses and allow prospective investors to automate their investments.
Fintech platforms are revolutionising the investment landscape by leveraging their strengths in content and technology. They are actively working to minimise the hurdles that retail investors have traditionally faced when placing investment orders. Moreover, these platforms are going the extra mile to provide investors with the necessary resources to make informed and improved investment decisions.
As per a market forecast report published by Statista, the global Digital Investment market is poised for substantial growth, projected at 13.07% from 2023 to 2027. This notable surge in growth is expected to contribute to a market volume of US$5.27 trillion by 2027.
The ascent of digital investment platforms aligns harmoniously with the preferences and behaviours exhibited by millennials, who are renowned for their affinity towards technology and convenience. These digitally adept individuals actively embrace digital applications as a means to seamlessly access investment opportunities, efficiently manage their portfolios, and make well-informed financial decisions.
Notably, many of today's digital investment apps offer a wealth of customizable features, adeptly catering to individual preferences and specific investment goals. This level of customization empowers millennials and Gen Z investors to tailor their portfolios to their unique risk tolerance, ethical considerations, or target sectors of interest. By doing so, they gain the ability to align their investments with their deeply held values and construct portfolios that authentically reflect their personal beliefs.
The convenience and accessibility offered by digital investment apps resonate particularly well with millennials, as they seek user-friendly interfaces, real-time information, and the ability to invest at their own pace. Digital investment apps provide a wide range of investment choices, including stocks, bonds, ETFs, mutual funds, and more.
This variety allows millennials and Gen Z investors to create diversified portfolios that spread risk across different asset classes. By diversifying their investments, they can potentially reduce the impact of volatility associated with individual securities and increase their chances of achieving long-term financial growth.
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The future is already here
In the realm of digital investments, geographical boundaries, and time zones become inconsequential, opening up new pathways for growth and prosperity. Fintech companies, both domestically and internationally, are now actively exploring the localization of their technologies to cater to the unique requirements of their target markets.
This localization encompasses various aspects, such as voice-enabled transaction announcements and proactive alerts that steer individuals away from unfavourable stocks. This localised innovation is reshaping the landscape of investment practices.
As the investment market experiences a significant and discernible transformation, an increasing number of investors are embracing digital applications as their preferred alternative to traditional investment channels. This shift is propelling the evolution of investment platforms, which are progressively diversifying and specialising.
The future of digital investment apps holds the potential to democratise the realm of finance, making it accessible to individuals from all walks of life, while ushering in a new era of financial empowerment.
Yashoraj Tyagi, COO & CTO at Sqrrl by CASHe