Going Digital Will Improve Future Investment | Motilal Oswall

How Going Digital will Enhance the Future of Investment

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Why go digital? The reason is simple. “Going digital” means the ease of operations for most industries and financial markets today. The reasons for going digital in almost all walks of life can take up pages, but the obvious reasons are the huge convenience for managers, employers, individuals and everyone else involved in digitisation. The costs of operation and management are also low when digital technology is involved. But now, with digitisation, new questions arise. Is the stock market, today, a safe place as it is all run online? This is the question that makes most potential investors apprehensive. However, with regulations and security in place, you can be assured of transparency in transactions. 

Digital technology is getting advanced with a high frequency, and there is always something new to explore across industries and financial markets. This can only enhance the investment process in the future, taking it to new levels of positive change. For investors, it means easy access, easy technique, and easy everything. For investment sources, like banks, exchanges and brokerages, it means more investment and more capital distribution. 

Online Trading to Online Business

The words “going digital” have a lot to do with the word “remote”. They almost mean the same thing. With everything undertaken online, especially encouraged by the global events of the past two years, almost all activities are remote. The pandemic may be waxing and waning, losing some steam, but remote work and remote transactions (from shopping to investment), are stronger than ever. It is bound to get even more solid in the future. Digitisation has created new opportunities for traders and small-scale investors, making it possible for more people to take part in international and domestic investing. It has also enhanced the path for businesses to go global and compete in the international marketplace. Significantly, today, every brokerage has an online trading app, and if you want to buy shares online, this is just a touch away, and you can do it from your smartphone. 

More Participation

The youth of India makes up the majority of India’s demographic. The youth is spread across all fields today, with education being a priority in every young individual’s mind. This is progress in itself, and the digital age has acted as an impetus, giving people more exposure. With more exposure, information online is there for the asking, and you will discover that there is more participation in investment today, from the youth, than there was, say, just a few years ago. Whether you view engineering students or students in the field of architecture, spare time is spent engaging in online trading. How does a student, barely 17 years of age, get access to trading platforms? Through the most digitally-savvy implement today, the smartphone! 

The stock market today is not a mysterious, far-off place than it was considered previously. Moreover, most youngsters begin their trading journey with trading simulators that are available with many app features. These help to train the youth in the nuances of the stock market. Therefore, with digital study, by the time a person reaches an age of earning an income, they already know about different investments and options. The future looks positive as the youth won’t depend on others to make their decisions, only themselves and their smart devices. 

The Demands of Investors

In the day and age we live in, investors, across age, income, gender, and other variables demand digitisation in all their activities. Consumers are tech-savvy, across the board, and want digital convenient processes incorporated in every aspect of their waking lives. Hence, companies and industries have no choice but to rise to the occasion of scaling up and meeting these demands. While going digital for companies and industries means initial investment and costs to be met, it is practically a one-time massive effort. 

Moreover, digitisation in the future world of investment only means more investment. This is because whatever consumers or clients choose to do digitally, whether it is to buy shares online or shop for latest products, it means more capital being spent in the industry concerned. This means more profit for consumer companies in the future. As far as investment goes, it means more investment by individuals who have digital access. 

An Ongoing Digital Revolution

Firms that follow an old-school culture, with conventional business models, will likely struggle to find a footing among the myriad companies that are going the digital way. Most technology businesses have witnessed a huge surge in demand for their products and services, as individuals continue to learn, work, play and invest from their residences, in the new remote scenario. As a result, the most significant factor in the success of any company will be the embracing of technology to drive business. 

When you talk of digitisation, not just software firms like SaaS and IoT will be more enabled, but companies from the sectors of e-commerce, fintech, healthcare, robotics, logistics, etc, will benefit too. With startups beginning their journey with digitisation at the core, they get funding easily, and this promotes abundant investment in such companies. Investors feel that such organisations, aligned with modern technology, have the ability to grow, and grow quickly in the future. Thus, investors see profits  and gains with such organisations. Online trading in recent years has seen many investors allocating a significant amount of wealth to startups, rather than in other asset classes. Even traditional investors are shifting gears to modern ways and instruments to invest in. 

Present Digital, Future Digital

Going digital is a great advantage for India, in the present, and in the future. With technology, the financial sector has opened the doors to more investors, as processes are quicker and easier to execute. This will increase in the future as faster data will be a reality with the introduction of 5G networks. Most Indians, from those that stay in small towns and villages to metros, have the key tool that facilitates digitisation and its advantages - the smartphone. Automatically, as if by some kind of evolutionary process, investment is taking place, in a range of ways from online trading to investing in an upcoming IPO, from all corners of India. This displays a promising way ahead for investors and the instruments invested in. 

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