Digitization and AI will improve financial literacy in India

Rohit Gajbhiye, Founder of fintech company Financepeer has reckoned that digitization coupled with AI can be the game changers in improving financial literacy which will further lead to financial Inclusion.

He was in Delhi to attend an interactive session on financial literacy at DAV united festival 2020 held at Indira Gandhi stadium. During the session which was attended by Industry experts, Rohit laid the emphasis on the role of Digitization and AI as the key catalysts in financial literacy that can enhance the capabilities of people to ensure economic security for their families.

It is even more essential for countries like India where financial literacy is relatively poor and where the majority of the population still finds it difficult to comprehend the financial leitmotifs. Lack of basic financial understanding often results in unproductive investment decisions which can be a hindrance in the country's blueprint of becoming an economic superpower in the coming years.

 

Talking about the role of Digitization in improving financial literacy Rohit said, "Improving financial literacy is a long-term behavioural change. It takes a multi-dimensional approach and persistent action over a period of time to drive a change. Digitization of financial information can play a very important role in improving financial literacy in India and one of the most important technologies in this area is artificial intelligence (AI), which is a key tool for positive change. AI can facilitate dealing with finances and financial institutions more accessible. It can take away the stigma and fear around dealing with money."

Emphasising the importance of financial literacy among students he added higher financial literacy will increase students' perceived value of schooling by boosting their time commitment to education.

There is a strong need to connect with the millennials who are tech-driven and always look for custom made financial solutions but have limited awareness and information about the same. Through AI the behaviour analysis can be drawn and products can be designed as per the data analysis.

Also, the bottom of the pyramid which consists of lower-income groups and where the majority of the masses belong needs to be involved in financial literacy mechanism then and only the idea of financial inclusion can look more effective.

All stakeholders must work in conjunction with financial literacy through a combination of innovative strategies.

Rohit is UNGSII and World Economic Forum Education vertical Board member and IIT Bombay and Stanford GSB Alumnus skilled in Credit Risk, Commercial Banking, Liquidity Risk and Management. He Founded Financepeer - AI-based Zero Cost, Zero Interest - School Fee Financing product with a vision to ease out School Fee Payments, provide quality education to middle and bottom of the pyramid (mass) and boost the K-12 School/Education Eco-System.

During the event, he met principals of schools, parents and hundreds of students and clarified their doubts about various school finance related queries. The event witnessed a tremendous response of students, educators and parents towards the innovative school fee financing model that Financepeer has offered.

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