The COVID pandemic swept the globe, wreaking havoc on a variety of medium and small-scale enterprises and individuals. Businesses suffered as a result of the stress, which resulted in job losses and financial losses. Those who had lost their employment or had their salaries drastically reduced had to rely on their savings to meet their bills. However, as industries adjusted to the new reality, many saw significant growth, necessitating the need for better financial management and literacy. Simultaneously, the epidemic created opportunities in personal finance by encouraging people to seek professional advice on how to invest their money appropriately.
Individuals are more receptive to guidance this time around, and they have a better understanding of how to invest and preserve their money. As a result of the pandemic, many professionals were able to learn and unlearn skills while working from home. Many people were interested in personal finance and changed careers or furthered their education by taking specialized courses and acquiring certificates which is where a financial advisor and planner come into picture.
Who is a personal finance advisor and planner?
A personal finance advisor and planner can help clients make informed financial decisions about investments and savings. They help manage your funds so that you can get greater long-term results. These experts use their financial knowledge and experience to assist people in achieving their financial objectives. A financial advisor offers strategies for saving, budgeting, insurance, and tax planning in addition to investments.
Personal finance consultants can also assist in assessing and mitigating risks, as well as avoiding costly mistakes.
As previously said, a personal finance advisor typically advises on a variety of financial instruments, with a few exceptions such as debt management, retirement planning, finance, investment planning, risk management, and insurance planning.
A Talent Gap
As people become more conscious of wealth management, there is a greater demand for advisors and managers who can assist with portfolio design and management. According to a news source quoting Rajesh Krishnamoorthy, Country Head of the Financial Planning Standards Board (FPSB) Ltd’s Indian Liaison Office, India has only 2000 CFP (Certified Financial Planner) professionals for a country with a population of billions.
Fintech firms enter the picture at this point. They offer financial advice and ideas to India’s neglected population, blue-collar workers with lower savings than others but an interest in financial management. The neo-bank provides a wide range of services and products to the target market.
Growth of Fintech Platforms
Fintech platforms have been tremendously successful in democratizing wealth management, extending this service to income groups other than high-net-worth individuals, which has been the industry’s primary focus in the past. These platforms have levelled the playing field by allowing everyone to invest a small amount of money. Investors can also take advantage of user-friendly features and services that add significant value.
As a result, India has one of the world’s fastest-growing fintech markets, with the greatest adoption rate. It is currently worth $31 billion and is predicted to rise to $84 billion by 2025, with a 22 percent annual growth rate. This astonishing achievement also demonstrates the recent emergence of the stratus. Over 67 percent of the 2,100+ fintechs were founded in the last five years. Many of these firms have challenged traditional banks and institutions to digitalize and expand their service offerings.
Courses and certifications required to work as a personal finance advisor include:
A bachelor’s degree in finance, business, accounting, mathematics, or economics, as well as certification as a Certified Financial Planner from the Financial Planning Standards Board (FPSB), is required for anyone interested in this career.
Many professional finance bodies, such as IRDA and SEBI, urge people to seek financial advice from CFP-certified experts.
A specialization in finance management can be a valuable asset in India, attracting a plethora of high-paying professions.