Finvasia believes in commission free system to encourage more users to invest in financial markets
One of India’s fastest growing FinTech company, Finvasia closed a funding deal with some of the industry’s notable Venture Capitalists. The majority FDI stake is from Intrinsic Investment Limited. The funded amount was not disclosed but the company was evaluated at INR 1.5 Billion during this round.
The company’s USP is the commission free model that will encourage more users to invest in financial markets. They want to eliminate commission earning middle men that help users invest in companies. There is always a conflict of interest when commissions are involved.
By bringing in artificial intelligence in the brokerage industry any person can avoid hidden charges and open a trading account within minutes. Based on Pan details of the user, Finvasia can extract all relevant details of user and validate it with OPT sent to the user’s phone. This system is known as eKYC.
Furthermore, Finvasia is eyeing expansion and is on the course of becoming a Commercial Clearing member with NSE and waiting to become a NBFC and a Depository Participant.
Finvasia is actively providing various technology based products such as social trading platform in global markets via its associated UK Company. The company now plans to bring the same technology to India. This automated, algorithm-based portfolio management advice will allow Finvasia customers to compare their portfolios and benchmark their performance against the Finvasia community, the markets, and their peers. Robo Advisors will act as a personal digital research assistant to an investor enabling him to manage his portfolio and its risk. Evaluating risk is much easier said than done and an average investor is usually not aware of the potential pit holes in the composition of his portfolio, whether its leverage, lack of diversification or statistically counter intuitive assumptions. This is where Finvasia’s Robo Advisors will lay it out a risk management plan in a very plain and simple words that can be understood by an average investor.
Open Source Web trader
Finvasia is planning to launch an open source web trader that traders can manipulate using API’s to build platforms that can be completely customised by a trader to fit their needs. This web trader will have widgets and apps, just like the ones on smart phones, so a user can customise his trading to his needs and not be constrained to the “One Size Fit All” type of trading terminals. Additionally, the company will be introducing various Algo based trading technologies for diversified client base.
Over last several years, Finvasia has been offering innovative technological solutions to both institutional as well as retail investors in developed countries. They plan on bringing all these technologically innovative products to India, in a phase manner, over next 24 months. From a technological standpoint, the company is ready, but before it introduces any financial product, they need to make sure that they are in compliance with laws of the land. Finvasia is working with financial regulators and oversight agencies to make sure that the products meet the local legal and compliance requirements of India. The company is certain that it will get the same level of response from Indian investors as it had gotten from their counterparts in developed countries.
Co-founders of Finvasia
“The idea – to the take the middle man out of an investor’s portfolio sprouted from an epiphany, when we realized that when it does not cost to send an email or a whatsapp message, why does it cost to send a trade over to the exchange. All these prompts are nothing more than data packets that travel across a network from source to destination using internet bandwidth. And, sending a trade to the exchange uses the least amount of internet bandwidth when compared with an email or a standard facebook post. Today, an average individual has to either pay a fixed per trade charge or monthly fees, which is equivalent to paying for sending a whatsapp message. We believe there’s something inherently wrong with that and we’re on a path to transform the typical commission based market to a technology supported investment regime” cite co-founders and brothers – Mr. Sarvjeet Singh and Mr. Natty Virk
We are excited to see a no commission, fully automated system that will help users trade in stocks on their own.