3 min read Dec 7, 2023
In April 2023, the cashless revolution brought on by UPI culminated in the highest-ever number of transactions at ₹890 crores. However, cashless transactions are not the only way technology has impacted personal finance. In the 1990s, the National Stock Exchange (NSE) changed ‘investing’ by introducing an electronic trading facility. As the internet evolved and became accessible, financial news became readily available for investors and as the processing power of computers increased and software evolved, various products like expense trackers aided personal finance management.
Seamless investing
Without technology, you would encounter various obstacles as an investor, such as a lack of information and difficulty finding buyers or sellers. But, these days, tons of high-quality data-driven research is available at your fingertips owing to the advent of information technology.
Finding buyers for your investments or sellers of the assets you want is easier with an online stock exchange. Since price discovery is easy on exchanges, you can avoid overpaying for stock or selling it below the market price.
Over the years, various new avenues for investing have opened up because of technology. A recent example of this would be RBI's Retail Direct Scheme, which allows retail investors like you to invest in government schemes directly.
Technology has also changed traditional investment avenues, an example of which would be Axis Bank's Digital Banking facility, which enables you to invest in options like Fixed Deposits, Recurring Deposits, Mutual Funds, etc. online.
Personal finance management
Instead of physical journals and ledgers that take a lot of effort to maintain, you can track your expenses using spreadsheet applications such as MS Excel and Google Sheets. Spreadsheets are a powerful tool for calculations and keeping records, making them ideal for managing your finances.
With automation and digital transactions, you might not even need to maintain spreadsheets. Whenever you make a digital transaction, you receive an SMS alert, and it also gets reflected on your bank statement.
You can also explore My Money, Personal Finance Manager feature on the Mobile Banking App, ‘open’ by Axis Bank to track your expenses based on various categories. You can get a breakdown of where exactly your money is going. This can help you identify areas where you might overspend and strategically manage your finances.
Also Read: Complete Guide on Digital Banking
Easy access to credit
Not so long ago, you needed to take out time to visit bank branches multiple times if you needed a Personal Loan. A similar ordeal awaited you if you needed a Credit Card. But now, you can easily access credit by applying for Personal Loans and Credit Cards online. The Personal Loan process is now completely digital and one can avail the loan just by filling few basic details, and get instant approval.
Even business owners can access credit online easily by applying for Business Loans without collateral*.
Income tax returns made easy
For someone not well-versed in taxation laws and accounting principles, applying for income tax (IT) returns can be difficult. There are various rules you need to be mindful of. This creates various chances for errors like missing due dates for filing IT returns, filling out the wrong IT return form, and selecting the wrong assessment year. IT returns also depend on your investing activity. They depend on where you invest (e.g. stocks, Fixed Deposits or bonds) and how you stay invested.
If you have worked for different companies over the years and hold various salary accounts, there is a chance that you might forget to report all bank accounts. But, these days, you can rely on several online products and platforms that let you fill out the various forms digitally for a minimal fee. Such products link your PAN card and bank account and prompt you to report your investments and income through the appropriate forms.
Also Read: When should you avail of a Personal Loan?
Conclusion
The biggest advantages brought on by technology for managing finances are ease of access to various services and the ability to process information. These days, you can get loans, make investments and even access bank statements online. Moreover, because of the advances in automation and digital transactions, you can easily track your expenses and file your IT returns.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
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