The great digital spree in India has led to numerous changes in all sectors of the society.
However, the major regions of the society that are experiencing the most significant impact of the latest Digital India initiative are the technology and finance sector.
Both of these sectors are responsible for driving large amounts of income for India’s economy. But with so many different concepts of technology such as big data coming into play, that have the power to transform the way people used to look at the world.
Leaders are focused on the impact of these technologies at India’s financial inclusion targets.
The economic sector of our country is never going to be immune from the advent of the online industry in the fin-tech space. This has paved way for market advancement in the financial sector, popularly what we know today the as peer to peer investment.
Peer to peer investment can be defined as a method of debt financing that enables individuals to borrow or lend money without the requirement of a financial institution or an intermediary.
One of the best advantages of peer to peer investment is that the role of an intermediary or middleman is completely eliminated in the investment and lending process.
Though, peer to peer investment plays a significant role in building a technologically advanced India. It requires more time, efforts and risk than the general investment scenario.
Now you might ask at this point, how a debt financing method such as peer to peer lending or investment is connected to technology or a Digital India initiative.
Peer to peer investment is an online initiative and harnesses technology and Big data to connect borrows of peer to peer lending to their investors.
Peer to peer lending has grown exponentially in the past few years and also tuned to be a fixed source of income for investors. If you compare peer to peer investments with traditional stock markets, you will be amused to find that the technology harvesting peer to peer investment has less volatility and less correlation as well.
Before any P2P loan application comes to the concerned platform like India Money Mart, the platform already has built an investor base with registered accounts on P2P.
Going by the statistics of ‘Accenture’s Digital disruptions: The growth multiplier report’ digital tech could power $2 trillion of global economic output by 2020.
The statistics indicate the US is winning the race in digital revenue. The digital revenue is making up a third, 33 percent, of the output.
How is peer to peer investment important in digital India?
It can be seen that the financial services turn out to be the largest contributor when we talk about national as well as global GDP. And this is not just applicable to India, but the entire world.
Financial services such as peer to peer investment are simple to understand, provide a decent value and have extended their availability to the neglected sections of our society and to the people who are willing to adopt the concept of digital India.
Peer to peer investment can also be considered to play an important for the digital India as it caters best to the needs of the people that are often rejected by banks. And not only this, P2P investment comes facilitated with simple procedures and rates that are exciting to both the investors and the lenders.
This is the main reason it is finding acceptance in all regions of society, regardless of age, education or a person’s social strata.
Gone are the days when large parts of our society used to be exploited by moneylenders. The advent of peer to peer lending with its digital play has all it takes to serve the needs of this section of people in the society.
Thus, peer to peer investment is engaging more and more youngsters as they find this medium of alternating finance quite lucrative. Both lenders and borrowers form an integral part of the system.
Above all, this method is cutting down the intermediaries in lending and investing process and increasing digital penetration at the same time. This is shifting the financial services of India to a fin-tech space in order to build a strong and popular initiative of Digital India.
