Financial technology, or fintech, has grown exponentially over the past few years, and the Indian youth are empowered by its capabilities and services. The COVID-19 pandemic helped highlight the value of digital and contactless financial services, which enhanced access and efficiency when people couldn’t visit banks or make transactions physically. This increased access to financial services exposes younger people to new ways of making transactions, investing, saving, and more. These tech-savvy young people are also highly connected to the online world and can easily pick up on concepts and instructions by tapping into resources and platforms on their devices, which many of them own.
With 65% of India’s population being under 35, empowering them through fintech presents many opportunities for the growth of the sector and the country as a whole. The youth can benefit the economy as they represent a significant portion of the workforce and consumers. This young generation is driven by new values and ideas, which can foster innovation and creativity in financial services.
Digital Payments and Fintech Startups
India is the third largest startup ecosystem in the world, with most of these new businesses being related to fintech. With the fintech industry rapidly growing and presenting various opportunities, young entrepreneurs are keen to take advantage of it. These fintech startups have helped empower young Indians in the workforce, but many are also using their businesses to target the financial needs of younger people who have yet to develop financial literacy and skills.
Youth-targeted startups like Junio, FamPay, and YPAY are helping Indian teens make transactions without setting up their own bank accounts or asking their parents for bank OTPs. They can do so by using pre-paid cards these companies offer, allowing them to make purchases and learn the value of their money through experience. Parents can top-up these cards so their children can use them to pay for expenses, and they can monitor these charges through the company’s app. It allows children more freedom and trust with their money while still remaining within reasonable limits set by their parents.
New ways to trade and invest
Fintech has allowed young people to access new means of building wealth. Trading platforms and online brokerages have emerged with the advancement of technology, and this tech helps people connect to various financial markets. For instance, traders of varying experience levels can access the forex market, which is the world’s largest financial market. They can trade forex on these platforms, accessing a wide range of major, minor, and exotic currency pairs. These platforms also come with helpful features and tools to enhance the experience and encourage smart investment decisions. Low and stable spreads, stop-out protection, and swap-free trading help prevent higher charges and guard against market volatility, while access to fundamental and technical tools aids traders in spotting important trends and price movements.
This type of fintech is easily accessible for younger people as it can be used on computers and phones, allowing for widespread use. By trading forex and other assets, Indian youth have the opportunity to build wealth and empower themselves with more financial resources and know-how.
Education on fintech
With the rise of fintech, the need for better financial understanding is necessary for continued growth and innovation. Education on fintech is becoming widely sought after and developed worldwide, especially with youth populations becoming more interested in it. Using fintech apps and platforms still requires some level of financial knowledge, so education can play a key role in fostering financial literacy in youth.
To capitalize on this need, the Indian Institute of Management Udaipur released a new fintech initiative, empowering the development of financial frameworks and technical understanding of the industry. Experts from various sectors can come together to develop new knowledge, practices, and frameworks to be passed down to younger people who can take what they’ve learned and apply it in their own lives or careers. Access to tools like artificial intelligence and machine learning can further boost efforts to redesign and redefine the country’s financial landscape.
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