By now, you are aware of the impact that artificial intelligence and data science have on your money. Everyone looking to sell a product or a service to you anticipates your actions. They do it with the help of your digital footprint. The choices you make when buying anything online provide them with adequate information about your spending and investing patterns. For example, if you use credit cards and manage to make payments on time, you build a credit history. When you take out a personal or home loan, your timely repayments help lenders understand your repayment habits. The offers you get are tailored accordingly.
All of that was happening even before the so-called FinTech revolution. However, the intensity with which the information is gathered is changing rapidly. Your information is available to those interested in selling anything to you in almost real-time. Through AI and machine learning, information about multiple potential borrowers is analysed instantly. The voluminous data can now be used to predict your future actions by combining your repayment history with your latest banking activity.
Additionally, India's digital public infrastructure is reaching new heights. Last week’s Global FinTech Festival in Mumbai, organised by institutions such as the National Payment Corporation of India (NPCI) and other quasi-government bodies, showcased biometric ID usage for payments on the Unified Payment Interface (UPI). Until now, to make UPI payments, you used a secret PIN. Now, you can use your face ID or fingerprint to authorise transactions on your smartphone. This is all set to create efficiencies and enhance productivity.
The term ‘India Stack’ was mentioned in keynote speeches and reports released during the event. The message from the government authorities was standard. Use the digital public infrastructure for inclusion. Sanjay Malhotra, the Reserve Bank of India governor, mentioned the account aggregators’ (AA) ecosystem that empowers individuals to share their financial data safely with regulated entities. “This ecosystem has seen notable progress with 17 AAs, 650 Financial Information Users (FIUs), 150 Financial Information Providers (FIPs), 160 million accounts being served, and 3.66 billion data requests from FIUs processed by AAs,” he highlighted.
What it means
The rapid evolution of new technology creates opportunities and challenges. Businesses are looking to solve market problems with the help of technology. They are incorporating AI, machine learning and data science to further enhance their ability to help customers. Some of them are threatened or directly affected by the evolving technology. Such a situation creates anxiety in the markets. Investors are using discretion while buying into companies. Not everything in technology or finance is interesting. Share prices of the traditional IT services companies have witnessed a sharp decline in 2025. The Nifty 50 gained 7% while the Nifty IT index fell by over 16%. That shows investor concerns about the future of IT services companies. During the same period, share prices of consumer tech companies like Eternal (owner of Zomato) and One97 Communications (Paytm) jumped 25%. Foreign portfolio investors are selling fewer Indian shares after selling record quantities so far. Both foreigners and domestic institutional investors and high networth investors are investing in initial public offerings. The issue of LG Electronics India, the subsidiary of Korean consumer giant, received an overwhelming response. The selling shareholders sought about Rs 11,600 crore but received bids for over Rs 4,40,000 crore. Many more companies are lining up to go public. Tata Capital, Pine Labs and many others are expected to raise record amount of capital. For you, businesses that cater to underserved markets are good for future growth. You must carefully read public offer documents and understand how companies plan to use your money. The new age businesses require you to learn. You can discuss these potential investments with your financial advisor. Investing regularly is the best way to create wealth in the long-term.
