millennials and GenZ are playing a key role in contributing to India’s
consumption-led growth story. The internet boom and the subsequent rise of
online services in the areas of shopping, food delivery, travel, etc. have
given the younger generation a plethora of choices to spend on indulgences.
said that, millennials and GenZ have realized the importance of following a
healthy savings regime even as the external scenario remains uncertain and
ever-changing. Although the overall inclination and awareness to invest is
high, most youngsters, especially from tier 1 and tier 2 cities, still require
guidance on various investment avenues to generate inflation-beating returns.
Many don't invest because they feel they don't have enough time, knowledge, or
access to large capital. A new generation of fintech players focusing on
micro-savings and change investing is trying to address this problem.
savings apps monitor a user’s spending. Every time the user spends money on
shopping, food, etc. via digital means, the app nudges them to save the differential
between the amount spent and the nearest round-off to INR 10, INR 50, or INR
100. When such ‘loose change’ cumulatively reaches INR 100, INR 500, or INR
1,000, the app nudges the user to invest it in a financial asset available on
Niyo offers change investing into mutual funds for users who use their
app for all banking related services. Apart from Spenny, all the other players
are currently focused on a specific investment avenue. Appreciate is the sole
player offering change investing into US stocks.
As per a PGA Labs study amongst users of micro-savings apps, more than
50% of respondents prefer saving and investing a round sum of INR 10 or INR 50,
depending on the app functionality. It has been observed that 77% of customers
falling in the age bracket of 18 – 24 years prefer investing a round sum of INR
10. This can be attributed to the fact that a vast majority of these youngsters
are students with very limited or no income source. Additionally, some of them
have just started with their jobs and hence are still figuring out their