Fisdom’s foray into private wealth may provide a blueprint for other fintechs

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MUMBAI: Fisdom, an investment platform with around 4.5 lakh of clients, on Wednesday announced its foray into private wealth management. He hired Abhijit Bhave, former CEO of Karvy Private Wealth, to lead its wealth management operations.

The company can provide a model for other fintech players in the financial services industry. Many of these platforms have large user bases for their investing applications. Some of these players, such as Paytm Money, have adopted a “market” model, integrating advisors on its platform rather than providing investment advisory services directly. Other big fintechs in the wealth management arena include Kuvera and Groww, both of which currently offer direct mutual fund plans and target the mass market. Kuvera recently announced a partnership with Amazon Pay to provide mutual funds and term deposits on the latter’s platform.

Fisdom has traditionally relied on its partnerships with PSU banks and legacy private banks to drive customer growth, and the company is now targeting affluent Level 2 and Level 3 customers of these banks. Older customers who are more comfortable with the human interface rather than the applications are the center of attention for this service. Fisdom currently has ties to over 12 banks and financial institutions such as Oriental Bank of Commerce, Indian Bank, Karnataka Bank, City Union Bank, Bank of Baroda, UCO, State Bank of Mauritius and Suryoday Small Finance Bank.

“The typical bank branch has around 8,000 clients of whom I would say 300 are considered well-off. They would either have a record or an account balance of over 50 lakh or an overdrawn account, indicators of wealth accumulation. and that’s the customer base. we’re targeting, “said Subramanya SV, co-founder of Fisdom. Fisdom is primarily a distributor of financial products such as mutual funds and shares commission income with its partner banks as a Referral commissions. This contrasts with apps like Groww and Kuvera which offer direct mutual fund plans on their platforms. Direct plans have no distributor commissions. Fisdom has a direct plan variant called Finity that is currently in use by a small segment of its clientele.

The private wealth division will offer customers both regular and direct options, depending on their preferences. “In a purely physical or traditional wealth management model, an account manager can manage an AUM of say ??100 crores. In a phygital wealth management model like ours, this AUM could be multiple, ”said Abhijit Bhave, CEO of Fisdom Private Wealth.

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