Wealthtech platform Fintso has acquired WealthMagic – a software service provider in the wealth management space. The acquisition will bring together more than 3,400 MFDs on a single platform having more than Rs. 1.40 lakh crore of AUM.
This acquisition marks a watershed moment for the MFD industry with a new-age Fintech firm acquiring an existing player to strengthen the offering to the MFDs it was serving. This could very well just be the beginning of consolidation in this space, with MFDs the likely winners.
The acquisition will empower Fintso to widen its footprint and reach out to 10 crore households over the next ten years. Further, Fintso has been working on expanding the products suite to include Direct Equity baskets and Insurance to its existing offerings – Mutual Funds, Global Investments and Corporate FDs – to create a holistic platform for Independent Financial Products Providers.
Overall, this synergy – a full product suite along with research & advisory support for making better recommendations to clients – will help the MFDs increase their Share Of Wallet and attract new clients. Simply put, Fintso’s host of innovative features will help MFDs strengthen the ‘bridge-of-trust’ that they have with clients.
The acquisition highlights the evolution that is taking place – from firms offering a SaaS (Software for helping in the back-office) to a full-service Platform offering not only MF execution, but a host of features to help MFDs grow their business – from more products to advisory support to digitally engaging with their clients through a state-of-the-art cloud native app and platform.
The benefits of this shift for the MFDs are:
Opportunity for business growth
MFDs/RIAs will be able to offer and transact digitally in multiple products on a single platform. A comprehensive product offering can help MFDs/RIAs grow and de-risk their revenue streams and increase their share of clients’ wallet
Access to expert views and analysis
Globalization and technological advancement have weaved together the world economies. In addition to micro & macro-economic developments, MFDs/RIAs must be abreast of the global happenings. With the use of extensive automation, artificial intelligence, and machine learning, Fintso provides deeper insights, research, recommendations, and model portfolios suggestions.
Professional marketing and state of the art investor experience
MFDs/RIAs can use co-branded marketing collateral and Fintso’s white-labelled communication to create their brand awareness. Through the modern tech stack, MFDs/RIAs can give their clients a state-of-the-art experience akin to modern B2C apps, while ensuring data security and privacy.
Upskilling and upgrading
Fintso offers the IFPP (Independent Financial Product Provider) Program in association with the AAFM (American Academy of Financial Management) India. Under this program, aspiring financial entrepreneurs will be trained for clearing regulatory examinations as well as for setting up their business practice. Young entrepreneurs will be rewarded a complimentary 1-year subscription and reimbursement of initial business expenses.
Talking about the acquisition, George Mitra, CEO and Co-founder, Fintso said, “MFDs can expect large modern multi-product platforms that will not only increase the ease of doing business but also augment their revenue streams, making it a more lucrative career proposition”.
He further added, “This should also lead to an influx of new MFDs/RIAs which will eventually lead to deeper and more meaningful financial inclusion.”
