What Do Fintech Startups Bring To The Table?

There was a time when you would have to wait in a queue just to make a cash withdrawal or deposit at a bank. And don’t even get us started on how long the process of trading in the stock market or investing in mutual funds was. (Pssst – It took forever!) But as time went by and more and more processes (thankfully!) went digital, the world of investment and banking changed.

The financial sector benefited hugely when processes started becoming digital. Banking became easier, trading in the stock market became easier, and even investing in Fixed Deposits of mutual funds became a lot more manageable. And these newly digitized processes paved the way for the growth of fintech.

You see, the concepts of saving, investing, and being fiscally responsible are as old as time, but how each generation approaches these undertakings has evolved. So, while the process of financial management is not a new one per se, the evolution of the ‘investor’ has highlighted the need for dedicated service providers who can help young investors navigate the world of investing – which, let’s be honest, can be intimidating.

This is where disruptive fintech startups assume the role of an engine leading the locomotive for investors. Today, millennial and Gen Z investors are more financially aware than the previous generations, and they prioritize saving and investing to beef up their financial portfolios. Fintech startups have enabled young investors to save money, invest it, and manage it easily, seamlessly, securely, and on the go!

Further, when the market is growing so rapidly and the options for investing are becoming so diverse, investors need reliable solutions which can enable them to make calculated decisions and explore new options as well.

 

That’s a general understanding of the role fintech startups are playing in the market today. Here’s a slightly deeper delve into the landscape change that fintech startups are bringing about – 

  1. Going Digital – Fintech apps allowed a seamless transition for a lot of the processes in banking and finance that were on their way to going digital. Take KYC, for instance. Today, you can simply upload your documents, verify them online, and simply share them across whichever fintech platforms you are using. There is no need to keep redoing the same procedure each time you want to carry out a transaction or update your financial portfolio. Thanks to fintech and the digitization of so many financial services young investors today are equipped with so many tools which can facilitate their savings and investments, while also offering them a clear view of what their financial portfolio looks like today, and what it might look like as they continue their financial journey.

  2. Starting Small – For investors who are fresh out of college (or even just late to the game – we see you, and we’ve got you!), investing large sums of money might seem daunting, if not impossible. But like we’ve said before, there is a lot to be said about practicing micro-investing and starting with amounts as small as spare change! So many fintech startups (yes – like Deciml) give investors the option to start small by investing smaller sums of money or even lose change consistently. Remember, the value of your investments doesn’t come from the sum of your investment alone, but also from how long and how regularly you are making investments as well!

  3. Tapping into Diversity – Today, there are just so many options to choose from when it comes to saving and investing. From mutual funds to private equity, from stocks to cryptocurrency – the choices are umpteen. It falls under the purview of fintech service providers to make sure that all these options are easily accessible to you. They have become end-to-end solution providers that can equip investors with the power to handle their savings and investments from end to end, having complete autonomy over their financial decisions. They also give you complete insights into aspects like risk, growth, and market conditions with a simple click!

With all that fintech startups do, it is important to remember that they are guides, and you still need to do your own research and make decisions based on your knowledge, budget, and trajectory. This is especially true when you are foraying into dealing in more high-risk fields like the stock market, or are availing options that promise higher returns.

But, if you do your own research, and find the right fintech startup to suit your needs, then fintech companies can be your own personal Gandalf – guiding you on your journey to making sound investment decisions and saving your money optimally.

 

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