How FinTech can help youth gain access to digital financial inclusion
By Puja Sharma
India’s teens are increasingly showing a strong inclination towards learning about new-age digital financial solutions. They are keen to enhance their financial literacy, according to the consumer survey co- compiled by muvin, India’s teen-centric pocket money app, and Mompresso.com.
The teen-centric financial literacy survey has revealed some very interesting insights which are intrinsically linked to the rise of pocket money apps in India. The consumer sentiment market mapping was initiated to understand Gen-Z’s needs for financial literacy and their grasp over issues about money matters amidst the rapid digitization of payments.
The financial inclusion of young people is important. Young people use and have access to money. Many young people, and even younger children, interact with money or have experience with money for example by receiving pocket money or earning money through chores or working in the family business.
According to OECD’s PISA report, there is great variation amongst countries. In the UK, almost all (97%) children (7-17) receive money either regularly in the form of pocket money or from paid work, or irregularly such as on special occasions. In the right context, access to financial services can be an enabler for young people, contributing to their empowerment and increased well-being, according to their needs and life stage.
Understanding the consumer base
The consumer survey analysed responses shared by 600 teens studying in grades 7th – 12th along with their parents (600) pan-India including leading cities like Delhi, Mumbai, Kolkata, Bangalore, Hyderabad, and Pune.
FinTechs by creating awareness around digital finance, leveraging technology to create secure platforms for teenage to conduct transactions, with ease to create a hassle-free account. Moreover, offering easy access, optimum security, and provides personalised asistanace.
Mukund Rao, Co-Founder, muvin said, “Indian teens are becoming financially independent, more than ever before. As young consumers, they are opinionated when it comes to their personal life and the choices they make, whether it is related to gadgets, fashion, food, or travel. Our vision is to empower India’s 250 million youth and teens with digital financial inclusion and financial literacy. All of our current solutions including our pocket money app, prepaid card, and the RuPay keychain are fully self-assisted and self-managed, empowering India’s young teen consumer base to experience financial freedom in a simplified and secured manner”.
An overwhelming majority of the surveyed parents (96%) felt that their children do not have enough knowledge about money management tools and need a trusted source to imbibe financial education. This was further corroborated by 93% of teen respondents having expressed an interest to learn about digital payments; with just a memeager2% of them being confident ofaboutsing digital payments. Despite this overwhelming want to learn about modern digital payment tools, over 80% of Indian students use cash as their primary mode of making payments.
Around 94% of the surveyed parents believe that their children are interested in learning about digital wallets reinforcing the need for a more organised and dependable financial advice mechanism. On the other hand, teens were a step ahead, with 70% wanting to learn about crypto assets like blockchain and NFTs as well.
Speaking on the survey, Prashant Sinha, Co-founder & COO, of Momspresso.com, said, “There is a growing need for financial literacy among India’s youth, as is evident from the Financial Literacy survey. We are delighted to have partnered with muvin, in helping teens make better financial decisions.
Key findings
- Over 80% of Indian teens use cash for their daily expenses
- Young people use and have access to money. Many young people, and even younger children, interact with money or have experience with money for example by receiving pocket money or earning money
- 93% of Indian teenagers are eager to get more financially literate & believe their understanding is sub-par
- 94% of the surveyed parents believe that their children are interested in learning about digital wallets reinforcing the need for a more organised and dependable financial advice mechanism.
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November 08, 2024