Changing face of investment in digital age

Only a few years ago, financial investment or ownership of a fraction of gold was nothing but a privilege of the well-off section of society. Today, even a smallholder in Rajshahi can invest using a smartphone, and a university student in Dhaka can sign up for a savings scheme with just a few taps on the screen.

Such democratisation of finance is not a mere coincidence. This is the direct result of a technological shift we are witnessing in real time, which is reshaping the investment domain in Bangladesh as elsewhere around the world.

In fact, technology has revolutionised people's access to financial tools, empowering them regardless of their socioeconomic echelon. Structured wealth generation is now possible through mobile wallets and micro-investment platforms, even for people with limited capital or financial literacy.

In our case, mobile financial services such as bKash, Nagad, and upay have not only made transactions easy and inclusive, but they have also made financial literacy and long-term financial planning accessible to the masses. Formal banking has never been easily accessible to the masses, whereas nowadays digital financial services are ever more a part of everyday life. This paradigm shift is not only economic, it is also behavioural at its core. Technology is impacting how people see their economic future. They do not have to be passive savers anymore; they are becoming active wealth creators. Asset management, which seemed like an intangible, complicated idea for the masses before, is now comprehensible, tangible and measurable.

Daily wage labourers are utilising the Deposit Pension Schemes (DPS) through bKash. Middle-class income earners are able to make investments in gold under Gold Kinen's schemes. Even livestock and agricultural investment are becoming mainstream through apps such as iFarmer. These FinTech and WealthTech ventures are disrupting traditional financial models. These technologies are not just replacing established models, they are expanding the horizon of possibilities. FinTech platforms enable digital transactions and mobile banking, while WealthTech offers sophisticated asset allocation functionality and goal-based investment tracking - all using smartphones.

Let's take the example of Gold Kinen, which allows Bangladeshi users to invest in fractional gold in the same manner that Rush Gold (Australia) or Paytm Gold (India) offers, turning gold into a liquid digital asset. These sorts of technological innovations combine culture with convenience and make an entirely new asset type available for investment for the masses.

Another interesting example is iFarmer, which connects urban investors with rural agricultural projects. The platform pools small amounts from multiple investors to not only fund agricultural projects but also to mitigate risks and share the profit.

MFS platforms such as bKash have increased financial inclusion, offering services such as money transfers, savings, payments, and remittances. Its DPS function encourages users to practice disciplined savings habits. With automatic deductions and straightforward returns, the product forms long-term financial discipline.

So, people have been more comfortable making financial decisions through mobile apps and digital interfaces than the traditional banking system. There is a growing need for convenience, transparency, and low barriers to entry - needs that the traditional banking or investment options cannot deliver. Digital tools are no longer seen as a mere convenience in Bangladesh's cash-oriented economy but rather as a valid wealth management tool. They are increasingly considered important drivers of financial inclusion and empowerment of the masses.

Looking ahead, as digital finance and investment become more deeply embedded in everyday lives, the challenge lies in ensuring that technology continues to be a leveller, not a divider. The promise of an inclusive and impactful finance is in our own hands. If harnessed sensibly, it has the power to further revolutionise not only investment but the very foundations of economic empowerment.

The writer is a FinTech expert and entrepreneur and the founding Director of e-CAB.