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Opportunities for Startups to Disrupt the Financial Industry
The document discusses opportunities for financial technology startups in India. It outlines some business models like financial advice, intermediation, and data/analysis. It notes challenges like heavy regulation and compliance costs. Some areas ripe for disruption include consumer credit and B2B solutions like trade and risk management. Specific startup opportunities mentioned include robo-advising, algorithmic trading, wealth management, and personal finance aggregation apps. The author's own company, Capital Mind, focuses on financial data and analytics.
Opportunities for Startups to Disrupt the Financial Industry
- 1. The Financial Bazaar OPPORTUNITIES FOR STARTUPS DEEPAK SHENOY CO-FOUNDER, CAPITAL MIND
- 2. Who am I? • 4th Startup – two exits, one shutdown • Founder at Capital Mind • Write on Macro, Markets and Investing • Premium Subscription for Market Analysis, Derivatives and Macroeconomics • See: http://capitalmind.in
- 3. Startups in theFinancial Sector Products • Insurance • Stocks • Mutual Funds • Credit and Loans Business Models • Financial Advice • Intermediation • Data and Analysis • Personal Finance • Portfolio Mgmt
- 4. Challenges • Regulation • Licenses • Compliance Costs • Cannot do certain things at all • Equity • Need serious money to even enter • Scale • Markets often not liquid enough; need to educate • Not Enough Exits
- 5. The Big Startups • Policy Bazaar • Perfios • Value Research • Bank Bazaar • Funds India • Edelweiss • MoneyControl ?
- 6. Ripe for Disruption Consumer • Credit • Low Cost Intermediation • Easing Regulatory B2B • Trade Solutions, Credit • Risk/Fraud • Fixed Income
- 7. Consumer Finance Startups Trust Security KYC Your Death? Monetize Scale out
- 8. Monetization Opportunities LeadGen • Not Everywhere Pay for Transaction/Advise • Tough in India Commissions • Regulated Subscription • Getting Early Traction Advertisements • Hahaha
- 9.
- 10. That New Brokerage • Brokerages can provide more value • Better Interfaces (OptionsXPress or others) • Lower Cost • But access to different bazaars at low cost • Not Enough Markets • Interest on Stored Balances • Stock Lending and Borrowing • Networking • Credit Provisioning
- 11. Algo Trading •Insti and Retail Automated Trading • Algos to bulk buy stocks • Arbitrage (already there) • Market Making • Visual Algo Creation and Back Testing • Co-investing Collective2, Covestor
- 12. Wealth Manager (lowcost) • Wealthfront is Big: 0.25% of assets • India can see Bigger • At even lower cost • But Needs Localized Approach • Product Selection • ETFs? • International Limitations • Debt Focus • Invest Intelligently in Tech
- 13. Personal Finance •Mint-style integrator of pers-fin • Yodlee provides APIs • Perfios + Many Others Are/Were In The Space • Challenges • Trust and Security • Tier II/III and Support • Form filling, Physical requirements • Not enough tech work (recognize credit cards by scanning them etc)
- 14. What Capital Mindis Doing • Financial Data and Analytics • Unserved: Fixed Income • “Outliers” • Great Visualization • Custom Indexes, Portfolio Tracking • MacroEconomic Data • Beat Bloomberg/Reuters
- 15. Failures • Paisa(But went on to make HelpShift) • MoneySights • MoneyVidya • Millions of Stock tip providers • One Outlook Magazine
- 16. Questions? • Pleasedirect comments to deepakshenoy@capitalmind.in