Role of technology in fuelling the growth of crowdfunding

The growth of any industry or sector relies on its ability to adapt and integrate new technologies into its processes. Almost every industry globally has leveraged technology for the larger benefit of its end users. Newer technologies, aimed at simplifying the user experience, are gaining credence with time.

Similarly, the crowdfunding industry has adopted and benefitted from the integration of technology as the world takes a step forward to create a multi-trillion-dollar crowdfunding market. A report by the World Bank also suggests that the crowdfunding industry is expected to have a volume of $300 billion by 2030. And technology will play a greater role in achieving this. Here’s how.

Donating online is the new trend

The process of donating towards an online crowdfunding campaign has been simplified with the integration of technology. Online payment methods such as UPI, net banking, and credit and debit cards now enable easier transactions towards campaigns, thereby overcoming geographical barriers.

According to the India Giving Report 2021, digital modes of donation have increased significantly. The use of digital wallets, in particular, has increased significantly, from 28% in 2019 to 44% in 2021.

Role of social media

There were about 658 million internet users in India in January 2022, of which approximately 60% use social media. These numbers significantly highlight the scope of online crowdfunding by leveraging the power of social media to help the needy.

Online crowdfunding platforms leverage social media to reach out to a larger audience across the country. Furthermore, the campaigners are often advised to share their campaigns on social media to ensure reaching out to a wider audience.  

Incorporation of artificial intelligence (AI) in crowdfunding

Crowdfunding platforms have started using artificial intelligence (AI) tools to ensure ease for campaigners in starting their campaigns to raise funds for their medical treatments. Similarly, AI enables crowdfunding platforms to enhance donor impact, and mitigate fraud. Moreover, insights from user engagement data will help crowdfunding platforms publish content, particularly for social media, that tends to appeal to donors based on their preferences.

Medical crowdfunding platforms have also incorporated AI-based story builders to help kickstart their campaigns within a few minutes. AI-enabled chatbots are also being deployed to ensure a seamless user experience on websites as well as on social media.

Final thoughts 

Growth in online crowdfunding solutions will pave way for a crowd economy. The emergence of ‘crowd economy’ will be a positive step towards ensuring access to funds for those seeking quality healthcare, through financial affirmative action of the generous donor community. All of this can only be achieved through innovation and the incorporation of modern technology in crowdfunding processes going forward.

Vikas Kaul, Chief Product and Growth Officer, ImpactGuru.com