Expense Management Maximizing Efficiency for Business Success
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 the Financial
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 ?
8. Monetization Opportunities
Lead Gen
• Not Everywhere
Pay for Transaction/Advise
• Tough in India
Commissions
• Regulated
Subscription
• Getting Early Traction
Advertisements
• Hahaha
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 (low cost)
• 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 Mind is 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