financial sector - opportunities for disruption

The Financial BazaarThe Financial BazaarOPPORTUNITIES FOR STARTUPSOPPORTUNITIES FOR STARTUPS

DEEPAK SHENOYDEEPAK SHENOY

CO-FOUNDER, CAPITAL MINDCO-FOUNDER, CAPITAL MIND

Who am I?Who am I?

• 44thth Startup – two exits, one shutdown Startup – two exits, one shutdown

• Founder at Capital MindFounder at Capital Mind

• Write on Macro, Markets and InvestingWrite on Macro, Markets and Investing

• Premium Subscription for Market Analysis, Premium Subscription for Market Analysis, Derivatives and MacroeconomicsDerivatives and Macroeconomics

• See: http://capitalmind.inSee: http://capitalmind.in

Startups in the Startups in the Financial SectorFinancial Sector

ChallengesChallenges• RegulationRegulation• LicensesLicenses• Compliance CostsCompliance Costs• Cannot do certain things at allCannot do certain things at all

• EquityEquity• Need serious money to even enterNeed serious money to even enter

• ScaleScale• Markets often not liquid enough; need to Markets often not liquid enough; need to

educateeducate

• Not Enough ExitsNot Enough Exits

The Big StartupsThe Big Startups

• Policy BazaarPolicy Bazaar

• PerfiosPerfios

• Value ResearchValue Research

• Bank BazaarBank Bazaar

• Funds IndiaFunds India

• EdelweissEdelweiss

• MoneyControl ?MoneyControl ?

Ripe for DisruptionRipe for Disruption

Consumer Finance Consumer Finance StartupsStartups

Monetization Monetization OpportunitiesOpportunities

ExamplesExamples

That New Brokerage That New Brokerage

Algo TradingAlgo Trading

• Insti and Retail Automated Trading Insti and Retail Automated Trading

• Algos to bulk buy stocksAlgos to bulk buy stocks

• Arbitrage (already there)Arbitrage (already there)

• Market MakingMarket Making

• Visual Algo Creation and Back TestingVisual Algo Creation and Back Testing

• Co-investingCo-investing

Collective2, CovestorCollective2, Covestor

Wealth Manager (low Wealth Manager (low cost)cost)

• Wealthfront is Big: 0.25% of assetsWealthfront is Big: 0.25% of assets

• India can see BiggerIndia can see Bigger

• At even lower costAt even lower cost

• But Needs Localized ApproachBut Needs Localized Approach

• Product SelectionProduct Selection• ETFs?ETFs?

• International LimitationsInternational Limitations

• Debt FocusDebt Focus

• Invest Intelligently in TechInvest Intelligently in Tech

Personal FinancePersonal Finance• Mint-style integrator of pers-fin Mint-style integrator of pers-fin

• Yodlee provides APIsYodlee provides APIs

• Perfios + Many Others Are/Were In The Perfios + Many Others Are/Were In The SpaceSpace

• ChallengesChallenges• Trust and SecurityTrust and Security• Tier II/III and SupportTier II/III and Support• Form filling, Physical requirementsForm filling, Physical requirements• Not enough tech work (recognize credit Not enough tech work (recognize credit

cards by scanning them etc)cards by scanning them etc)

What Capital Mind is What Capital Mind is DoingDoing

• Financial Data and AnalyticsFinancial Data and Analytics

• Unserved: Fixed IncomeUnserved: Fixed Income

• ““Outliers”Outliers”

• Great Visualization Great Visualization

• Custom Indexes, Portfolio TrackingCustom Indexes, Portfolio Tracking

• MacroEconomic DataMacroEconomic Data

• Beat Bloomberg/ReutersBeat Bloomberg/Reuters

FailuresFailures

• Paisa (But went on to make HelpShift)Paisa (But went on to make HelpShift)

• MoneySightsMoneySights

• MoneyVidyaMoneyVidya

• Millions of Stock tip providersMillions of Stock tip providers

• One Outlook MagazineOne Outlook Magazine

Questions?Questions?

• Please direct comments to Please direct comments to deepakshenoy@capitalmind.indeepakshenoy@capitalmind.in