Investing Made Easy: How Consumer-Friendly Tech Is Changing The Investment Game

Thanks to innovative technologies, investing has become more accessible and approachable for consumers than ever before. 

With increasing awareness, consumers are all the more eager to explore convenient and easy ways to invest their money.

By Bhuvan Rustagi

‘Investment’ and ‘easy’ have often been at the two ends of the rope. For most people, investment is demanding, laborious, and certainly not easy, and this could be due to various reasons. However, the lack of knowledge and awareness tops the list. But today, the scenario has changed. Thanks to innovative technologies, investing has become more accessible and approachable for consumers than ever before. 

Technology has transformed the investment scenario for consumers

Investment technology has upscaled the industry landscape. How? Evolving from simple online platforms, we now have integrated solutions. This has led to a shift from consumers opting for simple transaction-based services to seeking holistic wealth management. 

With increasing awareness, consumers are all the more eager to explore convenient and easy ways to invest their money. It would be right to say that with technology, investment has become affordable and comparatively cheaper than traditional options. In fact, it has been pivotal in bringing about a fundamental shift in how investors manage their portfolios. Let’s deep dive into the current landscape and how technology is revolutionising the investment landscape for consumers - 

Democratising access

Investment providers are leveraging the power of technology to make investing all the more accessible for consumers. Whether it is online brokerage firms or investment management apps, companies are putting their best foot forward to simplify the process for consumers. Hence, today they can start their investment journey with just a few clicks, and even manage their investments seamlessly anytime, anywhere, in one place. In fact, with technology, investment companies now have the means to reach the segment of India’s population that does not have access to banking facilities and investment opportunities. 

Simplifying the process

Tech solutions are simplifying the investment process and easing it out for consumers. One of the key aspects of ensuring this is through user-friendly interfaces. Gone are the days when consumers used to spend hours analysing and understanding cryptic charts and jargon. Investment platforms now offer intuitive interfaces and clear explanations, making investing less intimidating. Additionally, the feature of automated investing backed by technology enables setting up recurring investments or reinvesting dividends automatically, thereby simplifying long-term strategies. 

Personalising the experiences

Today, consumers demand personalised and customised experiences. Taking this into account, even investment platforms are striving to offer tailore solutions to their consumer base. Using AI, they analyse financial data and suggest personalised investment options based on our unique situation. Another way to offer personalised experiences is through goal-based investing, wherein consumers can define their financial goals, whether it is saving, wealth management, wealth creation, retirement funds, managing down payments, etc., and let the platform suggest tailor-made investment strategies to help them achieve their goals. Technology even allows us to build customisable portfolios aligned with our risk tolerance or build our own from a range of assets. 

Enhancing transparency and control

New-age technologies have improved transparency and empowered consumers with the control to monitor their investments and track market fluctuations closely in real time. Technological advancements have led to the emergence of apps and super apps that help us manage our investments on the go, making it easy to stay informed and adjust our strategy as required. Harnessing the power of technology, investment tech platforms can offer transparent fees to consumers without any hidden charges, giving them greater control over their money. 

Facilitating innovations

Tech has integrated into the investment industry to the extent that now we have innovative services to cater to consumers’ constantly changing needs. For instance, today we have robo-advisors to seamlessly service customers. They are automated platforms offering personalised investment portfolios based on our risk tolerance and financial goals, eliminating the need for expensive financial advisors. It is projected that over 34 million people globally will use them for making key investment decisions by 2027. Moreover, online brokerage firms offer an array of investment services to meet consumers’ requirements. Just imagine: with micro-investing apps, we can round up transactions and build wealth gradually by investing spare change automatically from everyday purchases. 

Fostering community and learning

Technology has enabled consumers to be a part of the investment community and connect with other investors online or even have in-person conversations. This way, they can share experiences and learn from each other. Additionally, platforms utilise tech to offer integrated learning tools and provide curated articles, webinars, and videos from financial professionals and industry experts that help expand our knowledge base, empowering us to make informed decisions. 

Indeed, technology has emerged as a boon, simplifying investing and easing the process for consumers. As a result, portfolio and cash flow management have become better, online transactions have become safer, and people are now well-informed when it comes to investment. All this has been possible due to tech integration into the investment ecosystem. However, the flip side is that it doesn’t come with the guarantee of risk elimination. Hence, consumers must do their own research, understand their risk tolerance, and seek professional advice whenever and wherever needed. 

Backed by technology, the financial market will continue to evolve. Hence, new-age solutions like blockchain, IoT, and AI will profoundly impact the way consumers make their investment decisions. When it comes to financial management and investment, learning is the key. Hence, consumers should embrace lifelong learning as the financial technology industry is evolving constantly, and staying abreast with the latest trends and tools is essential to staying ahead of the curve. 

(The author is the COO & Co-Founder, Per Annum & Lendbox)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.