The Indian financial landscape has witnessed significant changes over the last decade with the infusion of technology. Better known as Fintech in the domain, technology has changed much of how we originally carried out our financial transactions. We transitioned from going into the bank during business hours to making cash deposits using ATMs accessible around the clock. Today, most transactions are carried out digitally with little to no cash handling. Though gradual, this transition has changed how we transact, save, and invest.

Not only is technology changing the way we physically transact, but it is also starting to alter the way we think and interpret financial decisions. Consider the online flight aggregators that are available today. Previously, if you wanted to book a flight, you had to visit each airline’s website to look at your options. Aggregator platforms today provide you with a wide range of options for travel modes, costs, frills like hotels, and other necessities like travel insurance. These one-stop shops are no more a luxury than a necessity. Similar changes are taking place in the financial sector, with cutting-edge platforms powered by fintech at their core, bringing a wave of change in our current decision-making process.

How are these helping investors make better choices in saving and investing? Here are some highlights:

Financial Data

To begin with, let’s start with the products that investors are being offered. Big data is in, and innovators are finding new ways and means to extract quality information from this widely available resource. For instance, something as simple as your latest fixed deposit maturity date lets your banker know you will have the funds necessary to invest in another financial product. Similarly, at a more advanced level, your financial transactions carry a wealth of information about your relationship with money, thus indicating to product manufacturers that they should offer you a specific product that matches your current needs. Much like offering insurance, when they notice your medical expenses are rising. Investors now realise that better and more customised offers for financial products are reaching their inbox, giving them more straightforward options to choose from.

The amount of information we receive can occasionally be intrusive and overwhelming. Hence, the government’s most recent Account Aggregator framework is one step toward ensuring that you have control over your financial information and that you share it with the appropriate group of people. This decision to maintain control while keeping the investor at the centre is undoubtedly positive.

One-stop shop for information

The ability to view all of your financial investments in a single location is another enormous change brought about by the implementation of fintech. Investors can now view all their investments across financial assets on a single dashboard. Their investments’ overall performance, asset allocation across asset classes, including underlying assets, and updates on the latest investment products and market mov
ements are all visible to them in real-time in a single view. This is a massive benefit for savvy investors who monitor the markets frequently or daily and make investment decisions based on market trends.

Control and decision-making

With the advent of fintech, investors now have complete control over their portfolios and the information they require to make investment decisions. There are many resources available for investors to learn about investing, products, and the most recent market developments from a beginner to an advanced level. Using various resources, investors can learn about investing, products, and the most recent market developments from a beginner to an expert level. Making a financial decision can be difficult, particularly if you don’t have the time or the knowledge to navigate the financial markets successfully. Here, it is best to collaborate with a financial fiduciary who acts in your best interest and is aware of your goals, risk tolerance, and time horizons. Suppose you are concerned about trust or losing track of your investments; the technology available today ensures that you always have complete control over your finances and retain the ability to make the final decision.

As investors, we have a wide variety of tools and platforms available today to help us make the right investment decisions. What is required from us is adequate time and control over our emotions to ensure we make the right investment decisions that align with our set goals. This requires the ability to distinguish between noise and accurate information, which can be attained if we take the time to improve our financial literacy.