From the cabbie to the doc, fintech start-ups have wares for all

Financial technology start-ups and investment advisors — who sell everything from fixed deposits and gold coins to mutual funds and insurance, and advise you on how best to park your spare cash — are now eyeing a niche categories of investors ranging from cabbies to celebrities, in order to broaden their markets.

Dinesh Rohira, Founder and CEO of 5nance.com, is working with cab services so that drivers swipe a certain portion of their fares into a daily savings account. At the end of the month, the total investment goes into a mutual fund’s systematic investment plan (SIP).

“Cab drivers can easily afford to invest in SIPs of about ₹3,000-₹5,000 a month. Many of them just let their spare savings lie in their bank accounts. They have no clue about financial services,” Rohira says.

His plan is also to tailor the mutual fund recommendations to the risk profiles and financial goals of the investors, something the fintech company already offers to its existing pool of investors.

At the other end of the spectrum is Amar Pandit, the founder of My Financial Advisor and the Founder and Chief Happiness Officer of Happynessfactory.in.

Pandit’s financial advisory business caters to the uber-rich – doctors and corporate executives, celebrities and business owners.

The financial advice he gives them, Pandit says, is often tailored to meet their professional requirements. “Take doctors, for instance,” Pandit explains. “Their economic life-cycle is very different from investors in other professions. Doctors begin to earn only when they are about 30 years old — unlike the rest of us who might start before 25.”

Also, once their practices are set up, doctors tend to have unique cash-flow needs. Many make the mistake of investing a lot in real estate at the start of their careers, while being inadequately insured against death, disability, professional liabilities and a loss of income.

“Medical equipment, too, becomes obsolete very quickly. So, a doctor who buys equipment for, say, ₹1 crore today, may need to make larger investments in upgrading this equipment just a few years later.”

Pandit also caters to Bollywood celebrities and business owners — two other classes of investors with large and sudden cash flows.

As the market for professional financial advice grows, Rohira sees fintech start-ups like his honing further into niche categories of investors. “With these domain-specific offerings, we can link an investor’s income potential and lifestyle choices with his or her investment goals,” he says.

COMMENT NOW