Every few decades, a product, an idea or a system completely changes the dominant landscape. Think Apple, Wi-Fi, Amazon, and you’ll understand what I’m talking about. One of the biggest triggers for change lately has been the Unified Payments Interface or UPI. Launched 5 years ago, it has transformed India’s digital payment ecosystem and fostered immense innovation in India’s digital economy.

Bill Gates said, “We always overestimate the change that will happen in the next two years and underestimate the change that will occur in the next ten. Do not let yourself be lulled into inaction ”. And right now, the action is happening in the wealth management and investment ecosystem that may well be growing. UPI moment. Just as UPI has enabled the creation of a transparent payments ecosystem, a Unified Wealth Interface or UWI can transform the investment and wealth management ecosystem and drive investment economy on the Internet. In such an economy, different types of service providers will be able to seamlessly offer wealth and investment solutions to clients in the most personalized and contextual way.

Let’s see how this can add value to various ecosystem players and improve user experience.

Scenario 1: You are a content app, website, or research provider who writes about stock markets, mutual funds, ETFs, and trading and investing ideas. You have pretty decent traffic, but your audience often complains about not being able to act on ideas on the spot. They must either log into their broker’s website or a trading platform to buy or sell the investment. This can turn out to be a tedious process.

A great added value for you would be to offer your audience the opportunity to read the content and apply the ideas immediately. For example, Sheena reads an article about the uptrend in the pharmaceutical industry over the next few years. Now she wants to buy a highly recommended pharmaceutical stock or, better yet, invest in WealthBasket, carefully selected pharmaceutical stocks. In today’s ecosystem, she’ll need to open her broker’s app or website, log in, and then make the purchase.

Read also: The effective management of wealth, as its size continues to grow, is a complex question: Raghvendra Nath, MD, Ladderup Wealth Management

However, in the ecosystem powered by UWI, Sheena can simply buy the featured stock or pharma WealthBasket with a few simple steps. Let’s see how it goes. When Sheena clicks on the investment, she is invited to share some relevant details by a wealth gateway similar to a payment gateway. The gateway takes care of the authentication and execution of orders with the broker of his choice, allowing him to buy the WealthBasket share or portfolio in complete transparency. Now that Sheena is able to transact on your site, she has become even more inclined to consume the content you share, which adds value to her investment journey. She has also recommended your app to several of her friends. With this, your value proposition becomes more holistic thereby exponentially increasing the traffic to your site / app downloads. From a brokerage platform perspective, this saves a user from having to log into an app / site, then search for a business or WealthBasket, and possibly trade. Everything is happening seamlessly and fast, so users are likely to make more transactions. A clear win-win situation for all stakeholders in this equation i.e. the consumer, the broker and the content or search provider.

Similar benefits will also accrue to a research portal that provides in-depth research reports to its clients. The portal will allow clients to view investment research and start their investment journey by making the right investment choices. The best part is that the customer can do all of this seamlessly with just a few mouse clicks or tapping on the phone.

Read also: Sink or swim: why wealth management can’t afford to miss the digital wave

Scenario 2: You are an investment advisory platform that performs portfolio analysis and then provides investment advice to its clients. Currently, most platforms do this through a fairly manual process. The relevant details of the customer portfolio are entered manually in an Excel sheet and then the analyzes are carried out. Even for platforms that leverage certain technological elements, the end-to-end process is not automated. However, with a Wealth Gateway, this whole process can become seamless and automated, allowing you, the advisory platform, to offer clients highly personalized services. Since the gateway is designed to be broker independent, it can extract relevant details about an individual’s portfolio, authenticate it, and use a portfolio optimization solution to suggest recommendations for buying and selling investments or optimally rebalance the portfolio. The optimization tool can help you track the client’s portfolio, create a watchlist, and even trigger trades with a broker of the client’s choice. This will help you deliver holistic solutions to your client in an efficient manner, thereby improving your relationship with your clients and providing you with an opportunity to grow your business. Again, the client is happy because she can access superior portfolio analysis services, the broker can expect more trades, and you have the opportunity to grow your business. Another situation that creates value for all the players in this equation, that is to say the client, the broker and the advisory platform.

In terms of building solutions above the wealth gateway, we’re just starting to cut service. UWI has the potential to change the entire wealth ecosystem, building strong bridges between ecosystem stakeholders, enabling the creation of innovative products and solutions, and ensuring that customers can take advantage of these more contextually informed solutions. This will herald a new era of investing in India, where India invests in the most autonomous way on the internet. UWI in addition to brokerage / transaction platforms will pave the way for Internet wide wealth management.

The views expressed in this article are the personal opinion of Ujjwal Jain, CEO of WealthDesk.


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