The personal financial industry has witnessed shifts in trends every year, especially as technology and its application continues to grow. But the pandemic has put the spotlight about personal finance. It gets a higher priority because people are aware of the importance of financial planning and protection, which leads to many experiments with digital offers when physical interaction is limited. Like some other industries, the personal financial market also sees the boom in digitization, with digital players who have seen uptick players and legacy rushing to modernize.

Increasing awareness of a person’s personal finance and the adoption of fast technology will continue to have an impact on the industry and influence the trend that can be expected for next year and so on.

The appearance of personal financial applications

Personal financial and wealthtech applications have become common, especially in the past two years. The economic uncertainty created by pandemics causes people to understand the importance of managing their personal finances strategically, increasing absorption of applications that digitize the creation of wealth and management processes.

According to the AppSflyer financial marketing report, India appeared at the top of the global market for last year’s financial application download with 149 Crore downloads.

When we enter the new year, personal finance and the WealThtech application will continue to witness significant traction and growth. Many feel comfortable with a smooth digital experience and are expected to continue to explore additional features and applications that offer a series of diverse investment roads from stocks to gold, along with wealth management advice.

Millennials and Gen-Z accelerate digitalization

Millennials and Gen-Z are expected to be a significant influence in the personal financial sector in the coming year.

Both generations are known as native digital people and have been found more cautious than their wealth management from an early age. These characteristics will produce higher demand for personal financial applications and digital experiences.

While the older generation relies on financial advisors to build wealth, the younger generation tends to prefer modern education media such as tools in applications or social media. Therefore, personal financial applications will meet this need by offering assistance in wealth management on the platform itself, making a higher time spent in the application.

 Basically, Millennium and Gen-Z will be more involved in personal finance and accelerate industrial digitalization.

Fractional investment reduces the entrance barrier

Fractional investment or bite has received lately traction. Previously, when someone wanted to invest in assets, they often had to spend a large amount of money that was impossible for many people. Now, with technology integration into personal finance and the appearance of applications, the amount of entry is much lower.

For example, a reliable and trustworthy asset because gold can be part of everyone’s portfolio, no matter the budget, with the application that offers digital physical gold ownership in the small gram faction. Even real estate, most of which have not been accessible to retail investors because ticket prices are high, now can be invested fractionally.

Fractional investment is expected to get wider attention and adoption by 2022 because people become aware of transformation that technology allows in the personal financial industry.