Micro-investing platform Spare8 helping young people build better financial habits

For decades, banks have been trying to tap the Indian masses with their products. Despite the millions of dollars they have sunk in to win the market, they have been able to bring in fewer than 40 million individuals because financial systems of today are designed by and for the financially literate. In order to eliminate the friction and make investing as smooth as possible, with quick onboarding, beautiful UI and clarity the only way going forward is through micro investing. Ronit Harisingani, CEO and Founder of the micro-investing platform Spare8, in an interview with Bizz Buzz, says, “Spending via digital methods in India has increased drastically via UPI. On the contrary, less than 3 per cent of the country has any formal method of investing. The only way to bridge the gap is to make investing an unintentional habit and merge it with spending.”

Tell us more about Spare8. What is the gap that your company is trying to fill?

Spare8 is a new way to save, invest and earn rewards. Through Spare8 you can automate your investments and create a daily savings habit without doing anything at all. What’s more is that you also get stable returns on your savings as it’s invested into gold. Simultaneously, Spare8 rewards you for your everyday investments; it puts the power of gold savings right at your fingertips!

With Spare8, you can purchase gold in small increments, making it easier for anyone to invest, regardless of their financial situation. On can also stay up-to-date with real-time market updates and instant access to account information, all at the touch of a button. Spare8 is more than just a platform - it's a vision. The vision being to make ‘Spending the new Investing’, users also earn rewards by playing slot games for every rupee invested. By leveraging upon the UPI (Unified Payments Interface) 2.0 stack, the fintech startup has been able to create one of the fastest on-boarding processes ever (less than 30 seconds). No KYC, no scanning of documents, no bank details required for users to start their investment journey.

Explain how technology has improved micro investing in India.

In recent years, technology has played a major role in improving micro investing in India. With the widespread use of smartphones and the internet, micro investing platforms have made it easier than ever before for people to invest their money in small amounts. Technological advancements have made micro investing more affordable by lowering transaction and fee costs. Many micro investment platforms charge low or no transaction fees, making it easier for new investors to get started.

Further with platforms such as Digio & services such as UPI 2.0, the process to get started has been frictionless. Investors can invest as much as Rs 1,80,000 into Digital Gold without completing KYC, this makes the user experience much more seamless. Users can easily set up accounts, track their investments and make transactions on their mobile devices with a few clicks.

Investors can easily transfer small amounts of money to their investment accounts thanks to the rise of digital payment platforms and online banking. This has increased investment opportunities for those who could not previously afford traditional investment options.

Technology plays a crucial role in terms of adding several features to one particular asset class. For instance, who knew one could also lease their gold and earn up to 16 per cent per annum with as little as 1g of gold. If this was done in physical manner, the quantity would be much larger.

In the big picture, how will micro-investing apps be helpful?

Overall, micro-investing apps have the potential to be extremely beneficial to individuals.

Here are some of the key benefits of micro-investing apps:

1. Daily cost averaging: cost averaging means making smaller, equal buys on an ongoing basis, instead of making large or irregular buys. As a first time investor, starting with this helps individua;s purchase an asset at every price and helps maximize returns over the long run.

2. Financial literacy: Apps such as Spare8, another famous micro investing app helps promote financial literacy and education by making it simple for users to learn about investing, track their investments, and make informed decisions. In the long run, this can help users become more financially savvy and secure.

3. Democratizing investment opportunities: Investing apps in general can help democratize opportunities by making it easier for small investors to participate in the financial markets. This can help level the playing field for individuals who may not have had access to traditional investment options or the resources to invest larger amounts of money.

How can an app like Spare8 encourage young Indians to save more money?

1. Making saving easy and accessible: One of the key ways that Spare8 has encouraged young Indians to save more money is by making it easy and accessible. It allows users to invest small amounts with as little as Re. 1. The app is designed to be user-friendly and easy to navigate.

2. Offering incentives and rewards: Another way that Spare8 has encouraged young Indians to save more money is by offering incentives and rewards. The app offers rewards or bonuses on every investment made or for investing regularly, which has helped motivate young people to save more.

3. Providing education and information: Spare8 has also encouraged young Indians to save more money by providing education and information about personal finance and investment. The app offers educational resources such as articles, tutorials, and financial tips that can help young people understand the importance of saving and investing.

4. Using technology and social media: Spare8 has leveraged technology and social media to engage young Indians and encourage them to save more money. The app offers features such as social sharing and gamification, which can make saving more fun and interactive.

Overall, an app like Spare8 has encouraged young Indians to save more by making it gamified, offering incentives and rewards, using technology and social media and being able to bridge the gap between spending and investing. By leveraging these strategies, Spare8 has helped young people build better financial habits and secure their financial future.

Describe the potential of micro-investing in India.

Banks have been attempting to reach the Indian masses for years, but despite spending billions of dollars, they have only succeeded in reaching a small portion of the people. However, the introduction of the Unified Payments Interface (UPI) and other Digital India Initiatives has significantly changed the payments environment in India. India currently leads the world in real-time internet transactions, surpassing China, the United States, and the United Kingdom combined. The UPI has also made it possible for India to offer fractional investment services that are akin to those offered in the US.­­