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Moneytouch Proposition Advisor Presentation


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A detailed presentation on the Moneytouch proposition for Independent Financial Advisors

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Moneytouch Proposition Advisor Presentation

  1. 1. Empowering intermediaries with an Integrated Platform Working together MoneytouchTM Retail Financial Services (P) Ltd Mumbai, IndiaStrictly private and confidential
  2. 2. Founding team (Retail) Raj Mahadev An MBA with over 21 years of experience in consumer banking with MNC banks like Citi, SCB, American MD Express and DBS across assets, liabilities, product, marketing, branch banking, Wealth Management etc. Strong believer in processes and compliance for scale. Sunil Shukla A Post graduate in Business Management with over 17 years of experience as an entrepreneur across ED assets, BPO and human resources. Started his career as a management trainee with American Express Bank. Even though he belonged to a family of profound bankers, he had a entrepreneur drive from the starting his career. Is well-networked and knows the best and the worst talent available in the industry due to his headhunting firm he manages independently. Subir Ray An MBA with over 11 years of experience in managing large teams across Philips, ICICI, Centurion Bank Director managing channels and a large sales force over 3000. Finally was the Regional Head for Centurion Bank. Retail An aggressive person with tremendous execution skills Harpreet An MBA and Computer Engineer has 10+ years experience in Fortune 500 companies, in software product Singh management and development. Domain expertise in Internet B2B/B2C technologies, Online Retail/Travel, Director Online Transaction Processing/Reconciliation, ERP, Risk/Fraud Management and Corporate Governance & Technology Compliance. and Risk Kuntal Dave A Fellow member of ICAI with over 18 years of experience in advising clients on tax, auditing, foreign Director exchange and valuation matters. He actively advises clients on various corporate restructuring matters and Finance and on foreign collaboration arrangements. He is a member of central Young IFA Network (YIN) committee of Legal International Fiscal Association, Netherlands. He is secretary of IFA India Branch and of Western Regional Chapter of IFA India Branch. Moneybase TM Touch touch Management team and Structure About Us 2Strictly private and confidential
  3. 3. Advisory Board Shailesh Executive Chairman of BDO Haribhakti Consulting Pvt. Ltd. and Managing Partner of Haribhakti & Haribhakti Co- Chartered Accountants. He is the only Indian Member on the Standards Advisory Council of the International Accounting Standards Board. He is Chairman, Financial Planning Standards Board, India. He is a Committee Member of Futures & Options segment of National Stock Exchange of India and is a member of the SEBI Committee on Disclosures and Accounting Standards. He has been awarded “The Best Non Executive Independent Director Award – 2007” by the Asian Centre for Corporate Governance & IMC in January 2008. He is on the Board of Directors of several listed companies. He is the Chairman of our Advisory Board Ajit Nair CEO of MX Advertisement (P) Ltd. Has over 20 years of experience in the advertising industry, involved in the servicing, business development, client management, and leadership functions. A B Com and MBA from Pune University. CA Fellow member of Institute of Chartered Accountants of India, Business Law and Commerce Narendra Graduate, working in UAE for last 17 years. During this period he is closely associated with the Lohiya Retail industry, Mall management and General Trading business activities in the Gulf region. Currently works for a reputed FMCG retail chain and Mall owners/ management Group of Companies as their Associate Director-Corporate Affairs responsible for all financial management aspects of the company, providing independent guidance based on sound commercial, financial, legal and accounting principles for groups business in UAE, Saudi, Jordan, Lebanon, Poland and other GCC countries. Responsible for business partner’s relationship and in identifying new business partners for new territories and for new businesses in co-ordination with CEO of the company. Recently has given full responsibility as CEO to manage the group’s retail businesses in Saudi, Jordan and Lebanon. Prior to coming to UAE he was practicing at Mumbai as Chartered Accountant specializing in Project Finance and Management audit. He has overall 25 years varied work experience. Moneybase TM Touch touch Management team and Structure About Us 3Strictly private and confidential
  4. 4. Economy is expanding Demographic Benefits • 50% of India’s population is under 25 years of age and 10% of India’s population born after late 80s, post liberalisation, has no guilt about consumption Economic Growth • In spite of the downturn the economy has been growing at a healthy pace better then many • Gross savings rate as a proportion of GDP is at around 30% • Per capita income has almost doubled and expected to touch $2,000 by FY17 and $4,000 by FY25 • With a majority of the population entering the work force the need for loans, tax savings, asset building would increase • Growing economy will increase the number of individuals who would need advise and planning Money touch TM Market and Competition 4Strictly private and confidential
  5. 5. Asset classes are growing Stock Market Mutual Fund Retail Assets With over 20 Industry Alternate asset Wealth The total retail million expected to The market for Management loans market shareholders, Insurance grow to $125 Bn Real Estate alternative estimated at $ India has the by 2010. Indian Wealth The sector is Indian realty assets like art & 250 Bn third largest There has been industry will expected to sector is gold is large and investor base in regulation manage Consumer credit reach $ 60 bn expected to has substantial the world after change as of estimated $1 outstanding at 8 in the next four grow from $ 12 investment being the USA and August which is Trillion dollars per cent of GDP years – a growth bn in 2005 to $ made. Japan. changing the worth of assets (it’s 30 -70 per rate of 500 % 90 bn by 2015 The gold and A Market distribution by 2012 cent for other SE jewellery market capitalisation of landscape from Asian countries) is over $ 50Bn around $ 1 product selling to Trillion advisory The Indian customer and distributor has dealt with limited products like MF, Insurance, Stocks, Debt. Studies* show that structured products will increase 3 times in the next 5 years, product mix will see a change Money touch TM Market and Competition 5Strictly private and confidential *Karvy HNI Survey Sept 2010
  6. 6. Customer has multiple needs • A customer has different financials needs at different stages of life which an advisor will need to address to be able to offer one stop top of mind service Retirement 60+ years Accumulation stage 45-60 years • Legacy Working life planning • 2nd home • Philanthropy 25-45 years • Investments • Business • Child educations growth plans • Alternate • Car loan • Retirement assets • Home loan planning • Lifestyle Early life • Insurance – Child Upto 25 • Business loans/ needs • Education Plans private equity years Loan • Systematic • Lifestyle needs • Credit Card investments • Structured • Bank account • Business needs products Business and Personal needs converge at some time if client is a business person, hence an advisor cannot ignore if he desires to increase share of wallet Money touch TM Market and Competition 6Strictly private and confidential
  7. 7. Changing regulatory landscape SEBI – Securities Exchange Board of India - Empowering investors with transparency in payment of commission. - Scrapped Upfront fee and took industry into a tailspin but objective was to get advisor to be seen as a client rep rather than the manufacturer and charge clients for services/planning IRDA – Insurance Regulatory Development Authority - SEBI Vs IRDA got cap on charges and also informing clients of the fee earned leading to transparency RBI – Reserve Bank of India Regulations cover Banks as distributors laying guidelines on what can be distributed and transparency FPSB – Financial Planning Standards Board of India Has been actively promoting the financials planning movement and working closely with regulators for setting standards to manage intermediaries/distributors Trends - Distribution industry will see stricter regulation in the coming years, more requirement for certification and continuous education - Planning/advisory will take precedence. - The regulatory structure will get aligned Money touch TM Market and Competition 7Strictly private and confidential
  8. 8. Our Target segment • The existing financial services intermediaries are many, such as” Mutual Fund Advisor Insurance Agent Direct Sales Associate Sub-broker Financial Planner Fresh Graduate Market Size 90K AMFI certified >3 Mio+ Agents Over 25000 DSE’s/ Over 100K Over 15K Over 450K distributors DSAs annually Challenges faced by the intermediaries Front end fee De tariffing in non Most players Revenues Independent Education not abolished life squeezing insourcing on related to advisory lead to skilling Online trading soon revenues account of risk and stock market business still a and a reality compliance sentiments challenge employability In Life Swarup panel impact awaited Money touch TM Market and Industry environment 8Strictly private and confidential
  9. 9. Drivers for success Key drivers for Challenges Implication success Product based Customer feels cheated Fee based model/ remuneration Financial Planning Too much time spent on Limited/ reduced customer administrative work time Technology Unable to compete with Loosing clients to large players competition Customer Relationship Limited access to Less Insights, analytical/ research tools differentiation Knowledge Customer life cycle needs Loose clients to players addressing needs Changing regulatory/ Inability to adapt to Flexibility economic landscape business models Money touch TM IFA Business Model Need to be a step ahead of customers 9Strictly private and confidential
  10. 10. To be future ready Product Provider Solution Provider Mutual Fund Advisor Wealth Creation Life Insurance agent Retail Loans Commercial Loans Business Loans Mortgages Non Life agent Promoter funding Personal Loans Bill discounting Vehicle Loans Direct Sales Associates Working capital Credit Cards Acquisition funding Loans against Sub Brokers property Loan against shares Financial Planners Small Savings agents Wealth Protection Wealth Enhancement Financial Planning Investment Banking Alternative Investments Commodities broker Legacy Planning Art Investment Advisory Insurance Planning Mutual funds Real Estate Chit Fund agent Estate Planning PMS Commodity Direct Equity/ Derivatives Offshore invest Art Dealer Small savings Structured Products REITs/ Bonds/ ULIPs CA / Lawyer Real Estate broker Money touch TM IFA Business Model 10Strictly private and confidential
  11. 11. Enabling IFA transition “The MoneytouchTM Business Transition Model” MoneytouchTM IFA business can be in any of these stages and we help can provide support them TRANSITION across any of the stages and enable the IFFTM to offer better value and compete in the market Money touch TM Transition Model 11Strictly private and confidential
  12. 12. Intermediaries have an advantage • The strengths of the intermediaries vary and we feel the IFA is best equipped to provide ethical solutions in the long run if they have the support to do so. A quick comparison: Player Training and Customer Cross selling Product Spread Technology Operations relationship and Marketing excellence management Banks (foreign/Pvt) High Medium High High High NBFC High Medium High High High Websites Medium to High Low Medium Medium High IFA Low High Low Low Low Platforms High High Medium Medium High Compared to the existing platforms how are we different: We have 5 clear advantages for the IFAs: 1. No clipping of fees from existing line of business 2. No transfer of AUM 3. Build business in own name 4. Generate additional revenues by xselling 5. Continue dealing with his existing partners Money touch TM Market and Competition 12Strictly private andBanks * In addition to confidential
  13. 13. Our Value Proposition “The model” An end to end support for IFA to transition the business to the next level State of the art technology with multi asset processing platform and one stop information portal. Visit our website and for details Multi product offline sales support to increase product penetration without any investment Marketing Insights and leads for growing the business Operations support – can outsource backend operations to us Training and Certification – product, selling skills, soft skills, advanced certification courses provided to upgrade skills Have the power to create an Unique Experience for their clients by being a one stop solution provider with a strong relationship bias Money touch TM Our Value Proposition 13Strictly private and confidential
  14. 14. The info portal The portal offers : Public Domain Article and latest news content – powered by MyIRIS Product details across full suite of products like Loans, MF, Insurance, Capital Markets, PMS etc Calculators – powered by My IRIS Qualified lead generation module - developed in-house with lead fulfillment tracker Capable of supporting NRI clients as well Secured Domain Loan Search Tool – developed in-house Mutual Fund Research – powered by My IRIS Commssion structure Knowledge bank, world markets etc In the pipeline: Field underwriting CRM Single Sign on and integration with mt360 Choose your IFA – with IFA grading Improved UI Insurance comparison tools Online training Money touch TM Our Value Proposition-Technology 14Strictly private and confidential
  15. 15. The processing platform The platform offers : In the pipeline  Commission and order booking  Queries Multiple  Analytics: Asset wise, Sector wise, Year wise. Assets  Reconciliation MIS Platform Daily Portfolio valuat-  Online MF buying/selling ion  Mobile Application updates  Online payments Alerts  What if analysis and  Advanced research Transac- Reports 3600 tions  Integration with leading exchanges Product Informa- tion Masters Uploads Financial Planning Money touch TM Our Value Proposition-Technology 15Strictly private and confidential
  16. 16. End to end sales support IFA needs to focus on their primary Line of Business (LOB) – eg Mutual Funds or Life Insurance For other LOB they only need to generate lead when he identifies a need. We will train IFAs to spot such opportunities All the required information is housed in our website and with the online training tolls (soon to be launched) IFA needs to complete the documentation from the client and deposit it at our fulfillment centres and we will take of the rest IFA needs to increase product penetration into their customer base, so that they increase your revenue earning capacity from each client It is a simple 5 step process Money- Prepare Submit the Liaise with touch On closure Identify need documents file/papers to client if takes earn your as required FC required care of fees the rest Money touch TM Our Value Proposition-Sales Support 16Strictly private and confidential
  17. 17. With multi product, multi partner solutions Multiple Products Home Loans Loans against Shares Art Loans against property Loans against Mutual Funds REITs Commercial Prop. Loans Equities/ Derivatives* Real Estate Properties Business Loans Demat* Life Insurance* Personal Loans Mutual Funds General Insurance Auto Loans Bonds Small Savings Gold Loans Fixed Deposits Basic Financial Planning Education Loan PMS Trusts/Wills* Multiple Partners Standard Chartered Bank Kotak Bank Axis Bank TATA Capital India Bulls Bajaj Finserv Reliance Capital Fullerton India Future Capital Credila Cholamandalam Barclays Finance Stock Holding Corporation Karma Capital HSBC Invest Direct Hiranandani / HIRCO HDFC Ltd LIC Housing Money touch TM Our Value Proposition-Sales Support 17Strictly private and confidential *yet to launch
  18. 18. Differentiate with marketing insights Segment Customers Based on their occupation, life stage, geography, income and other key defining variables. The data capture would be dependent on the IFA, however we will instill a discipline to capture all data systematically to ensure that all key variables are covered at the time of onboarding a customer Develop Predictive Models Using advanced analytic software to build business visibility for Sales Mgmt & Operations Use deep dive insights to cross-sell products Identify low hanging fruit for different components of the product suite Develop Target Marketing strategies tailor-made for critical segments depending on what is likely to drive financial needs Use the analytics to create specially designed from manufacturers Create MIS Dashboards as aids to market planning for IFA Annual surveys for further insights and comparisons Money touch TM Our Value Proposition – Marketing Insights 18Strictly private and confidential
  19. 19. Provide operations support Surveys have shown that IFAs spend 60% of their time managing operations and back office routine work If this time can be saved and the work outsourced, they would technically be able to double their business as they have twice the time available to manage their existing customers, get more referrals and meet new clients Operations that can be outsourced for a fee are : Routine transaction posting Managing customer queries Managing customer correspondence Follow up on documentation Accounting and taxation Technology The fee model can be per transaction or based on volume dedicated resources would be deployed Money touch TM Our Value Proposition – Operations Support 19Strictly private and confidential
  20. 20. Training and certification Knowledge is a key ingredient for success. IFAs will need to stay in touch with regulations, products, processes, new concepts constantly. There is no short cut and IFAs will have dedicate sufficient time in learning on an ongoing basis We offer a host of training programs focused on enhancing the skills so that IFAs are ready to face the customer and the changing market needs. The programmes we can conduct exclusively or as a group are : Financial planning Wealth Management Life and General Insurance sales Capital Markets Mutual Funds sales and service Retail Assets sales and service Trade Finance, Foreign Exchange Selling Skills and Soft Skills Money touch TM Our Value Proposition – Training 20Strictly private and confidential
  21. 21. Deliver a unique experience By partnering with Moneytouch, IFA can offer a whole host of services and match with the best in the industry. Coupled with their knowledge and advise they have a unique experience to offer to their client that covers: Convenience All financials needs of the client can be addressed by one person Consolidated statements Research reports Multiple portfolios can be tracked in one place Alerts can be personalised to each customer Enable decision making with comparative tools All information available on the website Advise Provide Financial planning tools to address all client goals Track portfolios and rebalance as per risk appetite Set alerts Access Compete with large distributors and banks by providing web access to client portfolios and with payment gateways for transactions Money touch TM Our Value Proposition – Unique Experience 21Strictly private and confidential
  22. 22. Our guiding principles For us the customer is the IFA All customers of IFA’s are tagged for life to the IFA in the system All access to computer systems and data is controlled as per authority grid We sign a customer confidentiality agreement so that IFA don’t worry about mis-use of customers database. All data analytics, insight led marketing activities will be done on behalf of the IFA IFA continues to earn lifetime fees for any product sold in the lifetime of the customer, no questions asked Money touch TM Our Value Proposition - Principals 22Strictly private and confidential
  23. 23. Our value packs We offer 4 attractively priced value packs with a mix of fixed and variable fee IFA chooses value pack based on his own business plan and his clients needs Money touch TM Our Value Proposition - Value pack 23Strictly private and confidential
  24. 24. Benefit to IFA’s Customer All financials needs across customer life cycle can be addressed under one roof Provide goal based financial planning Provide Web access to customers portfolio Consolidated statements Research reports Multiple portfolios can be tracked in one place Alerts can be personalised to each customer Enable decision making with comparative tools Money touch TM Customer Benefit 24Strictly private and confidential
  25. 25. Benefits to IFATM Continue with his existing partners Retain his earnings from all line of business currently active in Generate additional revenues with multiple products, by increasing product penetration Continue to build the business in their own name. Ride the economic cycle more effectively Manage Individual and SME clients and address customer needs end to end Provide multiple services to customers as under Money touch TM Benefit to IFFTM 25Strictly private and confidential
  26. 26. Disclaimer This presentation including the information contained herein is being issued by Moneytouch Retail Financial Services (P) Ltd group company. This presentation is issued on a strictly confidential basis and for information purposes only to intended recipient. It should not be distributed, published or reproduced in whole or in part, nor should its contents be disclosed by intended recipient to any other person. • Website: | • Email: • Call: (91) 99876 70978 / (91-22) 4206 3217 - 19 • Address: C / 202, Green Lawns, Opp. St. Pius College, Aarey Road. Above ICICI Bank, Goregaon (East), Mumbai – 400 063 Touch base Disclaimer 26Strictly private and confidential
  27. 27. Thank youStrictly private and confidential