Whenever we come across the term ‘financial technology’ (fintech), we get the image of abstruse apps that deal in digital payments, trading of marketable securities, or crypto. Although fintech did begin with something like that, it is now undergoing notable changes to cater to the needs of different age groups.
Off late, there is a rise in fintech for kids, which is making them financially independent. Let us understand below the reason behind such a rise.
Fintech for children
Children below the age of 18 constitute nearly 41 percent of the country’s population, a large and underdeveloped market with high potential for growth. And, the growing interest of children in fintech is apparent. In recent times, even kids are joining the race to make money and become financially independent.
And, entrepreneurs have realised this, and are coming up with more fintech startups aimed at children as customers. Investors and capitalists are backing such startups by making investments in their series of funding rounds.
Attributes of fintech startups for children
Fintech apps, specifically designed for children, not only teaches them beneficial financial skills such as savings, investment techniques and compound interest rates, but also helps them keep track of their pocket money and expenditures by setting limits and goals.
These fintech startups know that their thriving customer base is children below 18 years of age, and hence they are coming with a specification where parents can also keep a track of their children’s expenditure and savings.
Many apps have the feature where parents can directly transfer to their children’ accounts on a monthly basis. The apps also give kids the facility of setting goals and save money until the goal is achieved. Upon the completion of the goal, the user is notified to buy what he was saving for. Besides this, some apps also teach children money management skills through gamification and AI-led insights.
Fintech apps are also playing a prominent role in skilling kids by teaching them financial skills that are not usually taught at school by teachers or at home by parents.
In India, only 2.5 percent of the population invest in the stock market, which is an alarmingly low rate compared to other countries..
The young adults of today are increasingly independent in every aspect of life, especially financial freedom. They do not want to bother their parents for day to day transactions made by them.
By learning money-making and money-saving skills, they are gaining valuable insights on financial independence, which is sure to help them make notable contributions in the field of investment and will help in making the future economy more sturdy.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)