You can now pay, transfer, borrow, invest and insure digitally, so make sure you have your eye on the ball.
After demonetisation, the government’s endeavours of reducing cash transactions has boosted the digitisation of financial services, leading to more and more consumers adopting online transactions. The increased penetration of mobile banking in urban and rural areas has further helped in bringing about a sea change in how we manage personal finances today.
Our finances are now on our fingertips, thanks to the innovations brought about by India’s fintech and added transparency in the regulation of digital financial services, be it mobile wallets or payments banks. As the technology develops further, with the use of artificial intelligence, IoT, and blockchain, it will be interesting to see the transformation awaiting us in the future. However, with digital offering us more mobility and productivity today, here are the 5 changes that digitisation has already brought when it comes to personal finance.
Money isn’t paper and pennies anymore
Queueing up at ATMs and making monthly bank withdrawals is slowly becoming a thing of the past. Today, cashless transactions is not only the way to go, but is also safe and convenient. Be it ordering your groceries or buying big-ticket items like a washing machine, you don’t need to hand over the bills but simply show your smartphone screen or your debit or credit card.
Payments and transfers have become faster and easier
You no longer need to count out exact change or currency to pay for goods or services or choose to start an account with a bank that’s in your neighbourhood to make your money transfers less stressful. You can bank with whoever gives you more benefits, be it a zero balance account or higher interest on savings, no matter where they are located. With online banking and mobile banking, we are making the smallest transactions digitally and with greater ease than ever before. Whether you need to send your son’s tuition fees abroad or splitting last night’s dinner cheque with your friend, you’re managing all this online and in seconds.
Access to finance is now simpler and more convenient
Whether you need funds to travel or buy a home, getting your hands on money has become easier with online loans. With simple eligibility criteria, quick online applications and speedy disbursals, traditional lenders and modern finance companies have made accessing finance via digital means very easy. You can take care of urgent expenses, like hospitalisation bills, in just a few clicks, and get the money in your account on the same day.
Banks no longer the only players in the financial market
New names are emerging on the financial horizon, who offer competitive terms, putting you in the driver’s seat when it comes to finances. This is encouraging India’s banking sector to keep pace and offer added conveniences online. This means you, as a consumer, have a lot more choice of who to transact with. Be it mobile wallets, payments banks or credit offerings by e-commerce firms, you’re the one holding the reigns.
Managing personal finances is now just a tap away
What all this boils down to is simple: you can now manage your personal finances on the go. Gone are the days when you needed days poring over spreadsheets and running to and from advisors and CAs. It is now easier for you to manage your finances online with insurance companies, for example, changing norms to serve online customers better. Using apps that help you track your spends and budget your income and companies who encourage you to invest and insure right from your smartphones, it’s now up to you to be smart about money. With most financial institutions and credit card issuers also offering you more information via digital content, you can now keep abreast of news and lucrative schemes.
So, make the most of the transparency and security offered by digitalisation, and keep your financial independence on the top of your list.The writer is CEO of Bankbazaar