New-age platforms levelling the playing field for new financial advisors

There might be a growing clamor around new-age investment options such as differential property ownership and cryptocurrencies in India but, when it comes to investments and financial planning, we are still a pretty conservative bunch. Time-tested avenues such as fixed/recurring bank deposits, gold, and real estate remain popular because most of us are too hesitant to explore stocks, SIPs, and mutual funds. A significant percentage of Indians are even wary about applying for a credit card.

And this hesitancy stems from the feeling of not knowing enough about these financial avenues – which is only natural. Stock trading requires investors to be on top of short-term trends and evaluate how these changes impact their long-term investment strategy. Doing this well requires an in-depth understanding of how the market functions and the various factors influencing it. The same applies to other financial instruments such as loans and credit cards, where the financial outlay of the deal may vary significantly for small variations in the market. Caught up in their personal and professional responsibilities, most people avoid these financial tools rather than take a chance.

This dynamic, however, is changing with the rise of new-age digital advisory platforms that connect enterprising professionals with independent advisors holding years of experience in the BFSI space. These platforms are also increasingly popular with banking and finance professionals, with many ex-bankers, wealth/investment advisors, insurance experts, and loan agents signing up to help their peers achieve fiscal Atmanirbharta – and here are six reasons why they are doing so:

1. Job Creation: With the traditional banking and insurance sectors downsizing, new-age platforms have come as a breath of fresh air for financial advisors, who are empowered by technology to curate the best financial deals. In doing so, these platforms not only lead to direct job creation but also empower financial advisors to generate indirect employment by creating and developing their assisted business offerings.
2. Personalized advisory: Unlike the one-size-fits-all approach of banks and NBFCs, new-age financial platforms offer personalized advisories as per the unique profile, goals, and risk appetite of their customers. All a financial advisor needs to do is upload his or her leads to the platform; the state-of-the-art algorithm then processes the information to present the most relevant financial options available to each end-customer. 

This hyper-personalisation of advisory services also helps independent financial advisors to develop a deeper relationship with their customers. In doing so, not only do they establish themselves as the go-to person for financial advice but can also extend the broadest range of financial deals based on their customers’ unique profile and needs, leading to a win-win proposition for everyone.

3. Platforms that outperform traditional ones: New-age digital advisory platforms are not just disrupting banks and NBFCs; they represent a much better proposition for financial advisors when compared to traditional advisory platforms. For instance, they have zero investment requirements to get started, have timely payouts, and there is no hassle of invoicing or receivables management.

What’s more? There is unlimited earning potential with lifelong earnings when the customer acts on your recommendations; your income grows as your network expands. As a financial advisor, you also benefit from the widest range of financial products available in the market, along with training and guidance at each step from onboarding to deal closure.

4. Location-wise penetration: The divide between urban and non-urban regions in terms of service availability is as stark as it can get – especially when it comes to financial inclusion and awareness. New-age financial platforms are changing this status quo and using technology to enable access to quality financial services that were hitherto only available in metros and large cities.

This is a big fillip for financial advisors as they can now extend their reach to a larger customer base without any geographical restrictions. All you need is a smartphone with an internet connection and you are ready to share their expertise with a broader customer base across the country.

5. Futuristic approach: The traditional financial sector is still lagging behind in terms of technological adoption. This is where new-age platforms are making a difference with cutting-edge technological solutions. From customer acquisition to lead management and from deal closure to payments, every process is now automated and tech-driven.

For instance, most of these platforms use AI/ML algorithms that keep pace with changing market dynamics and suggest the best products accordingly in real-time. So, whether it is KYC formalities, AML compliance, or transaction monitoring – everything is taken care of by tech-driven platforms, leaving financial advisors free to focus on other important tasks like advisory and relationship building with customers.

6. A growth catalyst: By 2025, India is expected to have 900 million internet users. This increase in internet penetration will automatically lead to an increase in demand for online services including financial services. And since new-age digital platforms are built on advanced technologies like AI/ML, they are better equipped than traditional players when it comes to meeting this growing demand.

Moreover, since these platforms are accessible 24×7, they offer financial advisors the much-needed flexibility to work at their own convenience. This is a big advantage when compared to working for traditional banks and NBFCs where you’re bound by fixed working hours.

So, if you’re looking for an opportunity to enter the financial services sector or want to take your career to the next level, new-age digital platforms are the way to go!