Can fintech disrupt the democratization of investment solutions? A study of India

Title

Can fintech disrupt the democratization of investment solutions? A study of India

Creator

Ramdas, Rajani; Girish Kumar, Sandhya; Alagarsamy, Subburaj

Description

Purpose Because of unequal distribution of wealth and varied income groups across the globe, there is a widening gap in the kinds of investment solutions used by high-net-worth investors (HNWIs) and retail investors. With the advent of fintech firms, there are various technological disruptions observed. The purpose of this paper is to analyze the effectiveness of democratizing investment solutions on the investment behavior of retail investors in the context of fintech firms by using a qualitative research study approach. Design/methodology/approach The study used a qualitative approach with semi-structured interviews of fintech, wealth management and asset management experts to investigate the democratization of investment solutions in India. Interview guides were emailed to participants beforehand to ensure preparation and data was analyzed using NVivo software through thematic coding aligned with research objectives. The flexible methodology, guided by a carefully crafted interview framework reviewed by an industry professional, enabled deep insights into fintechs impact. Findings The results of this paper indicate that fintech firms have a significant effect on democratizing investment solutions for the retail investors. Furthermore, level of financial literacy and risk appetite were considered crucial factors to determine the scope of democratizing investment solutions. Practical implications This study aids fintech firms in understanding how democratizing investment solutions impacts retail and HNWIs, highlighting key factors influencing effectiveness. It helps retail investors recognize behavioral patterns, encouraging cautious risk-taking when investing in exotic asset classes recently made accessible, previously exclusive to HNWIs. Additionally, it evaluates the role of artificial intelligence and machine learning in enhancing fintech-driven democratization of investments. Originality/value Unlike prior studies that focus primarily on technological access, this study highlights behavioral and ethical dimensions, such as fear-based decision-making, myths about government securities and trust in human advisors, that mediate democratization outcomes in Indias fintech ecosystem. The present study addresses the gap related to the democratization of investment solutions for retail investors in the context of fintech firms by identifying several unique factors of democratization that were overlooked in prior literature through the use of a qualitative research approach. 2026 Emerald Publishing Limited

Source

Qualitative Research in Financial Markets;pp.1-27

Date

01-01-2026

Publisher

Emerald Publishing

Subject

Artificial intelligence; Democratization; Financial services; Fintech industry; Government securities; High-net-worth investors; Retail investors

Coverage

Ramdas R., Manipal School of Commerce and Management, Manipal Academy of Higher Education, Dubai, United Arab Emirates; Girish Kumar S., School of Business and Management, Christ University, Bengaluru, India; Alagarsamy S., Manipal Business School, Manipal Academy of Higher Education, Dubai, United Arab Emirates

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISSN: 17554179;

Format

online

Language

English

Type

Article

Identifier

https://doi.org/10.1108/QRFM-04-2025-0112

https://www.scopus.com/pages/publications/105039935674?origin=resultslist