More is Less: Wealth Management with AA

24 May 2023


Insurance agents, stock brokers, bank relationship managers, and wealth managers have faced disdain from investors due to various issues, like lack of communication, selling illiquid products, and inadequate planning. However, with data-sharing frameworks and increased digitization, users can provide their financial advisors comprehensive data on investments and liabilities, enabling better advice. Wealth managers can now offer instant insights on high-cost and underperforming assets, unproductive bank balances, and accurate tax reporting. They can track and suggest solutions for goals, ensure proper nominations, and consolidate investments under one roof.

The Account Aggregator (AA) framework has emerged as a transformative milestone in India’s financial industry, poised to revolutionize wealth management practices. With AA in the picture, incumbent companies must reevaluate and adapt their business models to stay relevant in this rapidly evolving landscape. These advancements will make many past issues obsolete, emphasizing the importance of choosing a secure and reliable advisor.

About the Use case

Wealth-tech players can offer their clients a consolidated and comprehensive portfolio view with AA. However, the proponents of this use case firmly believe that as the industry matures, the ultimate winners will be determined by two critical factors: the level of analytics and the customer experience. Those who can harness the power of advanced analytics, offering actionable insights and personalized strategies, will undoubtedly gain a competitive edge. Simultaneously, excelling in delivering a seamless, intuitive customer experience will foster long-term loyalty and trust. Thus, the use case in this show-and-tell session has the following features:

Track your investments with a detailed dashboard Get actionable insights on your portfolio Make informed financial decisions

The use case utilizes

Bank Account Analytics to identify customer wealth leakages by pinpointing asset-liability mismatches. It closely monitors individual cash flows, highlighting periods of low balance and advising customers to move money from bank accounts to more productive assets during high-balance months. This proactive approach empowers individuals to optimize their wealth management and make strategic financial decisions, ensuring their resources are effectively utilized and safeguarded throughout varying financial cycles.

The proponents of the use case firmly believe that customers do not need overwhelming analytics. Instead, what they need are clear, pinpointed answers on portfolio performance. Such streamlined insights empower individuals to make informed financial decisions. Thus, in line with the principle, the platform provides the following insights:

Number of active scheme Outperforming schemes Under-performing schemes Missing nominations Suitability of investments

The platform also enables users to visualize their lifeline, encompassing their net worth not just throughout their lifetime but also extending to their spouse’s lifetime.

To know more about the use case and the live demonstration, watch the entire session here:

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