Finance

Three Personal Finance Trends To Watch Out For In 2022

The personal finance industry sees shifts in trends every year, particularly as technology and its applications continue to evolve. But the pandemic has put the spotlight on personal finance. It gained a higher priority as people realized the importance of financial planning and protection, which led to many experiments with digital offerings at a time when physical interactions were restricted. As with many other industries, the personal finance market has also seen a digitization boom, with the existing digital players seeing a slight increase and the old players rushing to modernize.

The growing awareness of one’s personal finances and the rapid adoption of technology will continue to influence the industry and influence the trends one can expect over the next year and beyond.

The emergence of personal finance applications

Personal finance and wealth technology applications have become popular, especially in the past couple of years. The economic uncertainty caused by the pandemic has led people to understand the importance of strategically managing their personal finances, which has increased the use of apps that digitize the wealth creation and management process.

According to AppsFlyer’s Financial Apps Marketing Status Report, India emerged as the top global market for financial app downloads last year with 149 crore downloads.

As we enter the new year, applications for personal finance and wealth technology will continue to generate significant traction and growth. Many have become comfortable with the seamless digital experience and are expected to continue to explore additional features and applications that offer a variety of investment methods from stocks to gold, along with wealth management tips.

Millennials and Generation Z accelerate digitization

Millennials and Generation Z are expected to have a huge impact in the personal finance sector in the coming year.

Both generations are known as digital natives and they have been found to be more conscious of managing their wealth from an early age. These characteristics will increase the demand for personal finance applications and digital experiences.

While older generations have relied on financial advisors to build wealth, younger generations tend to prefer modern educational tools such as in-app tools or social media. Hence, personal finance apps will fulfill these needs by offering wealth management assistance on the platform itself, resulting in more time being spent within the app.

Essentially, millennials and Generation Z will become more involved in personal finance and accelerate the digitization of the industry.

Low barrier to entry for partial investment

Micro or small investment has been gaining traction recently. Earlier, when one wanted to invest in an asset, he often had to spend a large amount of money that was not possible for many. Now, with the incorporation of technology into personal finance and the emergence of apps, the amount of entry is much lower.

For example, a reliable and trustworthy asset like gold can be part of everyone’s wallet, regardless of budget, with apps offering ownership of physical gold digitally in fractions as small as a gram. Even real estate, which is largely inaccessible to retail investors due to high ticket prices, can now be partially invested.

Fractional investments are expected to gain wider attention and adoption in 2022 as people realize the transformations technology is enabling in the personal finance industry.

Prospects for 2022

India is rapidly emerging as a global financial technology leader, and together with the country’s tech-savvy youth, technology will be the main factor influencing personal finance trends in 2022. For example, the integration of new age technology such as blockchain opens up the possibilities of absolute ownership. For assets and security of financial resources and personal assets.

2022 promises to be an exciting year for all stakeholders in the personal finance industry as it becomes more democratic through innovations tailored to a variety of people and their needs.

Written by Ashraf Rizvi, Founder and CEO of Gilded

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