Traditionally, wealth management as a practice has always been restricted to a few elites with high net worth. With the advent of technology and adoption of digital transactions in financial services, the role of technology in wealth advisory has potential to make it accessible to the larger masses.
We have seen fintech startups innovating on both assets and liabilities sides of an individual’s balance sheet. On the assets side, we have businesses focused on creating technology-driven investment products in online trading, mutual funds, algorithmic trading, thematic investments, ETFs and debt investment products—such as peer-to-peer lending or invoice discounting.
On the liabilities side, there are multiple startups trying to solve the problem of access to credit—either through online personal, car, home loan platforms, switching housing loans, or even digitizing age-old practices such as gold loans.
As these individual startups go deeper in their specialized offerings, there is a huge gap for a platform to aggregate all these avenues on the assets as well as liabilities side to provide an integrated view of an individual’s net worth.
This integrated view powered by technology and analytics can help individuals to generate better returns on assets and reduce the cost of loan products on the basis of the risk and credit profile. It can also educate individuals on bringing in efficiency in money management, further help in diversification of their assets and achieving their financial goals.
Indian middle class investors have signalled aspirations of better returns by investing a record high SIP amount of ₹8,000 crore in 19 January and moving away from traditional investment options such as fixed deposits and gold. Such a platform can make money work harder for you rather than you working hard for money.
Sachin Tagra is an angel investor and head of Capital18-Network18 Group.
The views expressed here are personal.