The way people save, invest and spend money has witnessed some significant changes over the last few decades. Until recently, customers used to share a strong emotional bond with their respective banks that lasted for decades. People used to visit bank branches on a regular basis, and mostly, the relationship between the customer and the banker was much more than just a formal bank-client relationship. The personal touch in banking was a significant character of money management.
Ever since technology started playing its role in world finance, customers have started getting superior experience of support through alternative channels such as online banking, mobile, telephone, and ATM. Today, there is an immediate need to transform the typical business model of any financial platform to a customer-centric and channel focused platform that would enable users to keep up with the changing times.
These days, financial institutions consider providing their customers with the best of services and enhance their services with proper financial guidance, helping them invest in better options. The ‘Fintech’ start-ups that have come up with customized solutions have started providing services such as a personal finance management to help customers use state-of-the-art technology to manage their finances. Through their innovative solutions, they have ironed out hurdles in most common forms of investments offered by traditional banks. Let’s find out how you can manage your money more efficiently through these offerings compared to the traditional offerings of savings and term deposits.
Every bank provides customers with a savings account that helps the user to make the most of profitable monetary opportunities. Even though they provide peace of mind to users, these accounts, do not provide any capital appreciation. Most of the time the interest paid is either at par with the inflation rate and even lesser. In such situation especially in India, the inflation eats into the interest earned. Term deposit is a slightly better option compared to regular savings account. But today, mutual funds would be a better option to explore considering the capital market opportunities that exist and the kind of product platforms that are available.
Mutual funds are ideal for small investors who want a diversified risk portfolio in terms of money management. You can use it as a vehicle to invest in the long term. Mutual funds offer the benefits of market-linked returns, plus they help you earn high returns in the form of capital appreciation during positive market conditions.
But, using these financial instruments can make it difficult to track your financial goals and monitor your investments, especially without a personal finance manager. However, there are personal finance management tools available through 5nance that helps you manage finances spread across different financial institutions all under one roof. Whether it is your savings accounts, credit cards, mutual fund investments, insurance policies, loans, or fixed deposits, you can track them all through 5nance- “My Money”. No manual feeds required here; the tool auto-updates all data from your accounts.