Technological Transformation in Chit Fund Companies

Chit funds are one of the oldest methods of savings and borrowings in India. They served as important financial intermediaries for the people of the country for many decades. However, the Indian economy started opening up itself to new banking and financial institutions since 1990s. This resulted in many new banking and financial products and services, which catered to the needs of changing economy. Chit fund companies on the other hand were functioning more or less in the same manner. Technology has completely changed the way of doing the business in banking and non-banking financial companies. However, chit fund companies have not witnessed same pace of adoption of technology. This article discusses the technological initiations taken by some of the chit fund companies to take the age old financial tool to the new generation. The study also focuses on the chit fund companies that are leveraging on the technology to make a difference to the field of chit funds.