What is “Digital Finance”?
Are you aware of the term “Fintech”? If not, do not worry, here is what it means. Fintech is the merger of technology and financial services offered. This new term did not arise out of necessity for change, but due to a drastic change and evolvement in the technology as well the banking sector.
Digital finance is one of the aspects of the said term, “Fintech.” During the past few years, India has been rapidly taking part in the race for start-ups and has been doing fairly well in the area of digital financing.
Before we get down to discussing the need of “Digital Finance” in the country, let us understand what “Fintech” really means and what would digital lending do for the country.
Fintech is a term made by fusing finance and technology. It must be noted that Fintech is not some mere technological advancement or a tech-savvy word. Fintech is a ground that will not only make things easier for the people but will also boost the growth of the country.
In India, many citizens above the age of fifteen do not even own a bank account. And most of the bank accounts are not used regularly. Also, it has been found through research that the majority population of the country is still working, which makes it easy for new introductions in terms of “Fintech.”
It is known that the working and the younger generation is more accustomed to accepting newer trends than the old and retired.
Aspiring Youth and their Need for Digital Finance
As discussed earlier, the working class can accept and get used to the new trends than the elderly. And the recent demonetization has also led to an increased demand in this sector. It must be noted that India is not far behind in the race of start-ups in the Fintech domain. Although constrained, it is still growing at a fast pace.
The need of Digital Finance:
- Ease: The first and foremost thing to remember when talking about needs during the digital lending scene in the country is the ease of the transfer of money. Digital financing not only allows you to access your money by connecting your bank accounts and various credit cards but also gives you a statement of the money spent. Whatever platform you use, you can find a precise detail of your account.
- Wallets: This feature has been revolutionizing the finance structure and has been helping many people in arranging their money. Many digital finance platforms provide the feature of creating a wallet, which lets you store your money digitally. It helps you accept the money from some other person or allows you to send money through your wallet. It doesn’t matter what banking merchant you use, you can simply transfer and pay through these wallets. Another feature of the “wallet” is that you can easily pay your bills or other dues through these wallets.
- New Means of Payment: The digital platforms have given you access to the money you own at one place. By simply connecting your accounts and credit cards you get all the details in one place. You can pay or receive or even shop through these.
- Weightless and Paperless: As you know, these digital services are apps, and can be stored on your phone in a tiny space. You do not need to carry any debit or credit cards, cash or wallets along with you. You can simply use the app to pay for everything you shop!
The need for digital financing services has been growing for the past few years and will continue to grow in the coming years. These services will make the lives of people easier. The developing and evolving Fintech domain will make lives quite easy for all of us in the coming years.