AI, Automation, Tailored Credit Will Define Next Decade Of Personal Finance: MyMoneyMantra

Founded over three decades ago, MyMoneyMantra.com has emerged as a leading digital financial marketplace, bridging the gap between consumers and lending institutions.

In a conversation with Bizz Buzz, Founder and MD, Raj Khosla credits technology and product-side innovations as the primary catalysts transforming the financial services industry. “Players are continually expanding their reach and refining delivery to benefit the end-user,” he says.

From streamlining KYC to digitising loans, technology has enabled access to financial products even in remote locations. Looking ahead, Khosla predicts greater personalisation, automation, and AI-driven solutions in finance. “Purposeful borrowing should be encouraged—but with discipline,” he advises, adding that financial inclusion, improved credit access, and robust regulatory oversight will define the industry’s next phase

The FinServ industry has seen significant changes over the past decade. What key shifts or trends have you observed, and how have these impacted the way financial services are delivered?

Technology and product-side innovations have been the major drivers of change in the financial services industry with market players perpetually working to augment their scope, bandwidth and penetration for the greater good of consumers.

Previously, lenders struggled to onboard new customers as KYC and documentation processes used to consume several weeks. With the ever-evolving technological landscape, the timelines have shortened while the KYC processes have streamlined considerably.

The outreach and distribution of financial products have taken an altogether new shape as all products including a credit card, a personal loan, a home loan, a loan against property, an auto loan have been integrated digitally.

As a result of this, a person sitting in the remotest location can enjoy the banking services even if a branch doesn’t exist locally. However, this remains subject to the bank’s serviceability for a particular pin code.

The Reserve Bank of India as an active banking watchdog is increasingly tightening the noose on unfair practices while keeping a tight regulatory framework guiding banks, housing financiers, non-banking financial corporations (NBFCs) and financial distributors to safeguard the customer’s interest.

How do you foresee the future of personal finance evolving in the next 5-10 years? What changes or advancements do you anticipate?

In the coming years, I would expect a substantial ramp of the existing technological framework. This would result in a speedier conclusion of retail transactions. Furthermore, I also expect that portfolio quality would improve substantially, leading to much lower NPAs.

The financial services industry is likely to witness a slew of enhancements; it could be in the delivery & distribution of products, higher availability of tailor-made credit solutions, wider accessibility of credit especially for underserved sections, etc. The increasingly high involvement of LLMs, AI and automation tools can remarkably elevate the quality of services, while leaving more time and manpower with corporations to develop much more meaningful financial products and user experiences.

With changing economic conditions, how can individuals safeguard their financial future in times of uncertainty?

Borrow only as much as you can conveniently repay - overleverage must be avoided at all costs. For a care-free life, speculation should be avoided. Additionally, individuals should always try to inculcate the habit of savings and investments in a proportionate and disciplined manner.

This should be done without fail as such preparations help you sail through the turbulent periods that may include seasonal unemployment, possibility of a recession, crisis-like situations and instances of gray-swan events.

How do you address the challenge of financial inclusion, especially for those who are new to personal finance or come from underserved communities?

I believe technology has an effective answer to the above. Underserved communities have two large obstacles for financial inclusion. The first being reach and connectivity; the second is lack of complete data to enable proper credit assessment. Smarter technologies will solve both of the problems.

How do you think the role of traditional financial institutions (banks, insurance companies, etc.) will evolve as fintech continues to rise?

Traditional financial institutions will continue to occupy pride of place and will become stronger. The fintechs will also grow but will remain focused on products and geographies which are relatively untouched by the traditional institutions.

Age-old financial institutions, alongside scheduled commercial banks, will continue to serve as a backbone of the financial ecosystem. New-age corporations and fintechs operating with a set purpose are likely to pave the way for new financial products, while redefining the customer service.

What advice would you give to young people who are just starting to manage their finances?

The most important item is to not over borrow and to remain focused on maintaining and preserving a good credit score. I must hasten to add that purposeful borrowing is to be encouraged and youngsters can appropriately deploy leverage in the judicious realization of their life objectives.

Purchasing movable or immovable assets, automobiles, fulfilling household or children’s goals by securing a line of credit is not bad at all. The way you deal with credit and oblige subsequent repayments dictate your behaviour towards debt which ultimately builds or breaks the credit score. Adhering to repayments on or before the due date improves the credit score which can materially help you secure big-ticket credit facilities such as a home loan, loan against property, etc. at preferential interest rates.

Can you tell us about the founding story of My Money Mantra and what inspired you to start this platform? What gap did you see in the market that My Money Mantra aims to fill?

About 35 years ago, Retail Banking was practically non-existent in India. However, overseas customers had a huge choice for credit cards, home loans, personal loans, etc. In my personal view, it was therefore only a matter of time that these facilities would be also available in the Indian marketplace. Accordingly, we sized the huge gap and moved ahead.

What role does technology and digital tools play in helping users make smarter financial decisions? Tell us more about your Earntra initiative…

Technology and digital tools enable quick comparisons and also Product information is complete. Thus, leading to smarter decisioning. Our Earntra B2B platform enables financial distribution of products digitally across the country and also creates an earning opportunity for the individual agents.