Sara, a 50-year-old working professional, was in a car accident. She suffered some serious injuries and submitted a claim for permanent partial disability benefits with her insurance company. Her personal physician had already provided detailed documentation. But her insurance company requested her to attend an examination with another doctor, provided by them. This doctor, they said, is an "insurance doctor." Now, this was something new to Sara. But is it a new concept? Let us find out. Who Is an Insurance Doctor? Insurance doctors play a critical role in the insurance sector, which is quite underrated and misunderstood. Most of us assume that they actually replace the role of our treating physicians, but that is not the case. Our physicians treat us in case of any mishap, but they do not assess or evaluate our level of injury or disability. But then, who actually does it? This work is done by Insurance doctors, which, in turn, impacts or affects our insurance benefits. Th...
Are Tech Tools Boost Finance Literacy?
Currently, there is a clear global trend where people are leveraging the power of mobile applications and social media to upgrade their financial literacy and make informed financial decisions. Among the younger demographics, like the Millennials and the Gen Z, there is an increasing tendency to turn to digital platforms and tech tools for finance and investment-related knowledge, not only to grow money but also to identify career opportunities in the financial market.
The Opportunity!!!
The rapid advancement of mobile applications and the terrific boom in social media have prompted every industry and sector to seize the opportunity for innovation, customer acquisition, and engagement. Finance is definitely not lagging behind. It has slowly penetrated the world of social media and technology and spread its wings to reach out to every category of customers who are ready to harness the power of technology for learning and personal growth.
But first let us dig deeper into the world of social media and mobile applications, trying to understand how the tech tools work and why they have been gaining such exorbitant attention globally. This will help us to clarify how both mobile apps and social media influence personal finance decisions.
Social Media and Mobile Apps defined:
Social media, commonly identified by companies like Facebook, Instagram, YouTube, TikTok, Pinterest, Twitter(now X), and many more, are platforms that encourage expression of thought and ideas in the form of articles, blogs, photos, videos(both short and long form), question and answer sessions, community building and even sharing latest news updates. People discover interesting and entertaining topics and methods of doing many activities while putting up their own concepts, ideas, beliefs, and queries. Such a process successfully connects similar-minded people around the world and also give a sense of belongingness in society.
Mobile applications, on the other hand, are highly useful and easily accessible software on smartphones, tablets, or smartwatches, providing a huge range of functions and services in different fields, having user-friendly interfaces and fast installation process. They have penetrated all kinds of sectors, meeting consumer expectations in terms of real-time information, knowledge sharing, payment and money transfers, entertainment, community building, shopping and overall, creating a world where everything seems to happen at the touch of a finger on the smart-screen.
Top Countries Leading in Digital Financial Education
1. India
On average, Indians expose themselves to various digital platforms containing financial content and tools and engage with a huge range of different social media apps.
As of January 2025, the social media users in India is approximately 491 million. This represents an active user base of 33.7% of its total population. If only individuals of age 18 and above are considered, then 43.1% are on different social media platforms.
Source - DataReportal – Global Digital Insights
The latest statistics also show that India is the global leader in the adoption of mobile finance applications, with an estimated 1.7 billion downloads in 2024, which clearly signifies how the nation is increasingly relying on mobile applications for financial education and transactions.
Source - Sensor Tower
2. China
In terms of usage of social media, China is the leader with approximately 1.1 billion users, which is 74.68% of its total population.
WeChat is the dominant platform, with over 1.3 billion active users monthly. This tool is an integrated platform for mobile payments, social media, and many other services, and it serves as a central tool for financial transactions as well as education.
Source - EC Innovations
The Process!!
Mobile Applications:
The below-mentioned facts highlight how tech tools like mobile apps are changing the finance industry
Their features:
- They are installed in our smartphones, which is always with us, anywhere we go.
- They can be easily downloaded and used.
- Downloading process is free of cost.
- They have a user-friendly interface that is conveniently accessible by anyone.
- They work with good loading speed.
Promoting financial education:
(Some famous ones: You Need a Budget (YNAB), PocketGuard, Simplifi, NerdWallet, Goodbudget)
- Some of the best mobile apps for personal finance management have all the necessary features that can monitor financial behavior in real-time.
- They are perfectly designed for setting financial goals for budget and controlling overspending.
- Quite a number of them have investment-related features.
- These apps often offer study modules and lessons that are interactive and easy to learn.
- Quizzes, games and challenging sessions along with rewards promote financial education that is fun and engaging.
- They also offer personalized suggestions and recommendations that help investors make informed financial and investment decisions.
Social Media:
Next, let us come to social media. With the advent of internet and smartphones, social media has become an indispensable part of our daily lives. So here is its role in the finance field.
- It is a great source of monetary information in the form of community posts containing the latest financial news and updates around the world.
- People share good money management tips and tricks that promote better decision-making.
- Many financial institutions promote their products and services that help in better investment, budgeting, lending, brokerage, funding, stock trading, and asset management procedures.
- Various institutions teach how to market financial services on social media.
- Various social media platforms are meant for the exchange of information and question/answer sessions.
- Financial influencers also called Finfluencers, create written and video content to spread awareness about different finance-related topics, including sharing personal experiences, ideas, struggles, and guidance in their financial journey and retirement plans.
Global Trends
If we try to analyze the behavior of youth, as investors, a World Economic Forum survey shows that among the total Gen Z individuals, 30% begin their investment journey during their university years. This trend is primarily because they have unlimited access to the internet, mobile applications, and financial content, which they can use to upgrade and sharpen their skills and knowledge for making informed investment decisions. Tech tools like AI assistants are also being accepted and trusted as a method of gaining financial knowledge, with nearly 60% of respondents being from India and China.
Source - Financial Times
Conclusion:
Thus, to summarize, both social media and mobile applications have become intertwined with our daily lives due to their ability to reach out to a huge base of customers and break down money-related jargon and complicated procedures into simple and easy-to-understand steps, ultimately demystifying the world of finance by making learning fun.
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