FinTech Idea Board 2021 - Matrix

Hi Guys,

Saw the Fin-tech thread and felt i could share a few things here. Have spent some time in Financial Services across MF, LI and wealth management. My area of understanding is limited only to points no 3, 4 and 5.

Sharing my two bits here

On Wealth Management

• On 3a, it can be tricky. The early investors part is being played through SIP's and Smallcase in a limited way. It will be tough to assume and templatize what is correct, when and how much for each individual. This exercise does not take into account all the other social factors in the investors life, his legacy financial system and values and more importantly his upbringing which determines the level of risk he is willing to take.
• AMC route sounds good on paper but there a few already in the market and yet no ones does a great job at attracting the young first time investor and that task became the category task for AMFI to do via SIP's
• The geographic concentration risk of SIP's has reduced greatly in the last 3-5 years and with almost a billion $ coming in monthly via SIP but the penetration is poor and inconsistent across Tier 2-3.
• What could be interesting to look at if i mirror the LIC agent model? what kind of 'advice' can they offer for Wealth Creation to the masses. This idea has not been done in scale but can be done. It is a win win for the industry and the consumer. NJ Invest is the 'SIP only' advisor on scale i have ever seen.
• Follow other traders is something i see currently done for Stocks and specifically for F&O. These instruments are seen as complex and hence 'follow' seems like a great way to simplify. Smallcase does that for equity and straddles both stocks and MF

On 3B,

• This is where is gets interesting. Currently these offerings are fragmented and no one player offers all.
• But hand on heart, i would love one such player to go to which my banker is scared off.
• Today I Direct is scared of Zerodha and Zerodha is wary of Kuvera.
• Also this piece has a trust deficit which has been perpetuated by the big bank RM's who are never there for the next years's annual portfolio review. I am hazarding a guess that if retention level of RM's improved in the banks, so would the AUM and hence fees.

Global Fin-tech

• International Credits Cards and Forex is a still a headache.
• I have 3 of those multi currency cards and cant figure out who and when did i get those
• Some one has to figure out the inter- operability of these cards for the lay consumer
• Global Bank accounts and global investments are far away
• But the product i would really. like to see, make, use is a Intuit kind of product
• It should link my bank accounts, Credit Cards, investments and give me a 360 degree view of my finances.

On Insur-tech

• FLDG models are under threat in a few places courtesy Covid
• If there is a run on them, they will default and hence NPA's are a certainty
• Last i checked, i don't think old school Insurance companies do any additional data overlaps while underwriting. But the newer guys do.
• Lastly LI industry has not done anything in the size and ambition of what AMFI has done for MF's to build a case for the industry and grow it
• On Insur-tech, i like what i see with RenewBuy. Disclosure - I am biased as they are friends. I like what they are doing and would love if they pivot harder towards Digital. They are more Phygital