Tag: wealth management

  • Wealth Management Firms Chase AI Adoption, Yet Most Remain Unprepared

    Wealth Management Firms Chase AI Adoption, Yet Most Remain Unprepared

    A recent HCLTech study highlights a significant disconnect in the wealth management industry: while nearly all leadership teams are pursuing artificial intelligence, very few have built the systems needed to truly transform their operations. The report, titled Hidden In Pl(AI)n Sight, suggests that firms recognize the need for change but are still far from executing it.

    AI Ambitions Versus Agentic Readiness

    According to the study, 98% of wealth management leadership teams are actively advancing an AI agenda. However, only slightly more than 7% are developing agentic AI capabilities — systems that can independently perform a sequence of tasks toward a defined goal, rather than simply responding to individual prompts.

    While 84% of respondents acknowledged that their operating models require a fundamental redesign to fully leverage AI, fewer than 10% are prepared for such a transition. These figures indicate that although firms understand the magnitude of the work ahead, most are still in the early stages of implementation.

    The research was conducted using a synthetic methodology. HCLTech, in collaboration with Evidenza, created 1,066 AI personas modeled on senior wealth management decision-makers across 17 markets. Industry practitioners, researchers, and subject experts helped design and validate the approach, meaning the percentages reflect modeled personas rather than a traditional survey of executives.

    Funding Efficiency While Ignoring Revenue Impact

    The report identifies three critical gaps between AI plans and business outcomes. First, firms tend to fund projects aimed at operational efficiency even when they acknowledge the need for broader change. Second, technology spending often outpaces investment in proprietary client data and insights. Third, measurement remains a weak point: companies track AI adoption but rarely measure whether these initiatives generate revenue or improve client value.

    Although 84% of leaders favor a major redesign of their operating models, only 12% measure the new revenue generated by these changes. Srinivasan Seshadri, HCLTech’s chief growth officer and global head of financial services, emphasized that clarity is essential. “The industry doesn’t have an investment problem. It has a choice problem,” he said.

    Executives in the study placed greater importance on client-derived data and behavioral insights than on cloud platforms, technology infrastructure, or AI partnerships as sources of competitive advantage. Nearly 80% also expect future leaders to combine AI with human expertise and external collaboration.

    Regional Confidence Varies Widely

    The study found notable regional differences in AI readiness confidence. The Asia-Pacific region led with 89% confidence, followed by North America at 84%. Europe trailed significantly at 38.3%. These figures reflect perceived readiness rather than actual deployment of agentic AI systems.

    HCLTech suggests that firms must connect AI investments with operational changes and measurable business outcomes. The research offers a snapshot of where modeled decision-makers see gaps today, not a prediction of how quickly those gaps will close.

    For wealth managers, the message is clear: adding AI tools is not the same as transforming the work those tools support. The industry’s enthusiasm for AI is evident, but meaningful progress in agentic capabilities remains limited.

  • Kunal Shah’s CRED: From Credit Card Rewards to a $4.5 Billion Financial Ecosystem

    Kunal Shah’s CRED: From Credit Card Rewards to a $4.5 Billion Financial Ecosystem

    Kunal Shah founded CRED in 2018 with a simple yet powerful idea: reward creditworthy consumers for paying their credit card bills on time. What started as a members-only platform has since transformed into a comprehensive financial ecosystem spanning payments, lending, insurance, wealth management, and lifestyle services.

    Starting with Credit Card Payments

    CRED’s initial offering targeted disciplined credit card users. Members could manage multiple cards, track spending, receive payment reminders, and understand their credit behavior. By linking timely payments to rewards, CRED turned a routine financial task into an engaging experience. Today, the platform processes more than 40% of India’s credit card bill payments and serves 17 million monthly members.

    Building a Broader Payments Platform

    CRED expanded its payment capabilities around its core customer base. It introduced UPI payments through CRED Pay, enabling users to scan QR codes and earn rewards, along with tap-to-pay on supported Android devices. In June 2026, CRED launched multibill payments and autopay for credit card bills up to Rs. 2 lakh, with over 70% of members holding multiple credit cards.

    Expansion into Lending, Wealth, and Insurance

    The company’s next phase moved beyond payments. CRED’s lending business now manages Rs. 24,000 crore in assets for top financial institutions. It also launched Yosemite, an invite-only society called Sovereign, a co-branded RuPay credit card with IndusInd Bank, and tools for tracking asset portfolios and long-term investments. Later additions include Cash by CRED and an AI-powered credit coach.

    Technology at the Center

    Technology remains the backbone of CRED’s model, connecting payments, credit management, rewards, and financial services. The platform relies on encrypted data and transaction systems. Its lending operation partners with banks and NBFCs, with CRED acting as a lending service provider. In June 2026, CRED received final RBI authorization to operate as a payment aggregator. The company also developed CRED codelens, a system delivering 4x AI acceleration using Amazon Bedrock.

    Meta’s $900 Million Investment

    CRED reached a major milestone in June 2026 when Meta led a Rs. 8,550 crore ($900 million) Series H funding round, valuing CRED at approximately $4.5 billion post-money. Meta became a minority investor without access to customer data. Concurrently, Shah stepped away from his operating role as CEO to join Meta’s global leadership team. Miten Sampat, who joined CRED in 2020 and led strategy and finance, became interim CEO.

    From Payments App to Financial Ecosystem

    CRED’s journey reflects a deliberate strategy of expanding services for financially active consumers. The company now generates about Rs. 3,200 crore in revenue and is profitable, with a full stack of licenses. An eventual IPO remains a long-term goal. With Shah moving to Meta, CRED’s next phase will continue under its existing board and leadership, expanding its financial services footprint.

  • 9 Visionary Entrepreneurs Driving India’s Fastest-Growing Startup Ecosystem

    9 Visionary Entrepreneurs Driving India’s Fastest-Growing Startup Ecosystem

    India’s startup ecosystem continues to thrive, powered by visionary founders who are disrupting industries and redefining business norms. From beauty and fintech to quick-commerce and wireless communication, these nine entrepreneurs have built some of the country’s fastest-growing companies, each bringing a unique blend of innovation, strategy, and execution.

    Falguni Nayar – Nykaa

    Falguni Nayar transformed Nykaa into India’s leading beauty platform by executing a strong omnichannel strategy and curating premium brands. Her vision reshaped online cosmetics retail, making Nykaa a household name.

    Vineeta Singh – SUGAR Cosmetics

    Vineeta Singh scaled SUGAR Cosmetics into a top beauty brand by targeting young, style-conscious consumers with innovative products and a digital-first marketing approach. Her brand resonates with the modern Indian woman.

    Neha Satak – Astrome

    Neha Satak founded Astrome to develop advanced wireless communication technologies that improve broadband connectivity in underserved regions of India. Her work bridges the digital divide, bringing high-speed internet to remote areas.

    Roshni Mahatani – Greylabs AI

    Roshni Mahatani created AI-powered fintech solutions at Greylabs AI, enabling financial institutions to enhance decision-making, automate processes, and deepen customer engagement through intelligent analytics.

    Shashank Kumar – Razorpay

    Shashank Kumar co-founded Razorpay, a platform that simplified digital payments for businesses across India. With secure, scalable fintech solutions, Razorpay now serves millions of merchants nationwide.

    Nithin Kamath – Zerodha

    Nithin Kamath revolutionized stock investing in India by introducing low-cost brokerage services and technology-driven trading platforms. Zerodha empowered retail investors with accessible, affordable investment tools.

    Nikhil Gupta – Neo Group

    Nikhil Gupta built Neo Group into a rapidly expanding wealth management platform catering to high-net-worth clients. His focus on modern investment solutions and personalized service has driven impressive growth.

    Nitin Gupta – Uni Cards

    Nitin Gupta launched Uni Cards to redefine credit experiences in India. The platform offers flexible payment options, digital-first services, and simplified financial management tools for a new generation of users.

    Aadit Palicha – Zepto

    Aadit Palicha scaled Zepto into a leading quick-commerce platform by pioneering ultra-fast grocery deliveries. Through efficient logistics and technology innovation, Zepto has set new standards for convenience in e-commerce.

  • Paytm Shifts Focus from Bonus Shares to Wealth Management with Rs. 100 Crore Investment in Paytm Money

    Paytm Shifts Focus from Bonus Shares to Wealth Management with Rs. 100 Crore Investment in Paytm Money

    One97 Communications, the parent company of Paytm, is trading at around Rs. 1,265.20 after its board withdrew the proposed bonus share issue and approved an investment of up to Rs. 100 crore in its wholly owned subsidiary, Paytm Money. While the decision disappointed investors expecting a bonus issue, it signals a notable shift in the company’s capital allocation strategy.

    Rather than opting for a corporate action that could have boosted short-term market sentiment, Paytm is channeling fresh capital into its wealth management business, underscoring its confidence in the segment’s long-term growth potential and ability to drive future profitability.

    Capital Allocation Reflects a Long-Term Strategy

    Dividend stocks are generally seen as an indication of confidence since they boost shareholders’ holdings without requiring any further investments. Nevertheless, they do not create new funds, enhance performance levels, nor help to improve competitiveness. Paytm’s board has instead chosen to deploy capital into Paytm Money, signaling that expanding its wealth management business is a higher strategic priority than issuing bonus shares. The Rs. 100 crore investment, to be made through a rights issue, will enable the subsidiary to strengthen its business while remaining wholly owned by One97 Communications. The move indicates that the company is prioritizing sustainable growth over short-term market enthusiasm.

    Paytm Money Emerges as a Strategic Growth Engine

    India’s payments ecosystem has reached a point where there is no dearth of users but little scope for monetization. There is continued pressure on transaction margins owing to the level of competition and regulations. In such a scenario, it makes more sense to focus on wealth management, which generates revenue from various avenues like equity trading, mutual funds, ETFs, IPOs, advisory services, and margin lending. Such a business generates high margins and increases the lifetime value of the customer.

    Paytm Money has gradually added more products in the investment domain over the past few years, making it a critical part of the Paytm financial services suite. The new round of funding will help with product development and regulatory compliance.

    Technology and AI Are Driving Platform Expansion

    Artificial intelligence has started playing a vital role in the development of online investment applications, and the Paytm Money application is one of them. The company has been utilizing AI features to make the investment process easier and more personalized for customers. These features help investors analyze their portfolios and make decisions, which will not only improve the customer experience but also lower the cost of serving customers. In addition, AI enhances operational efficiency, making it possible to scale up without increasing costs.

    Margin Trading Strengthens the Revenue Model

    A similarly important element driving trust in Paytm’s wealth management products is the growing importance of the Margin Trading Facility (MTF) service offered by the company. While traditional brokerage depends on trading volumes, the margin facility gives Paytm the chance to make money through interest generated by clients’ borrowed capital used to buy shares. Thus, the improved profit stream is why margin financing may become one of the most lucrative sources of income for Paytm Money.

    Beyond Payments: Expanding to a Multifunctional Financial Services Platform

    This trend corresponds to the overall strategy in India’s fintech sector. Firms that built their business model on a digital payments platform gradually started offering wealth management, lending, and insurance services to increase profits. In the case of Paytm, the ultimate goal is not only processing payments but also leveraging its large user base to cross-sell investments and financial services, generating higher profits.

    Improved Financial Performance Supports Expansion

    This improved financial stability allows the company to make such moves. Recently, Paytm posted a net income of Rs. 220 crore against an annual revenue growth of 28% to Rs. 2,448 crore. With its improved profitability, the company’s balance sheet is now stronger, and it can invest in companies with long-term growth potential.

    Strategic Implications

    While the pullback of the bonus share proposal might have hogged most of the limelight, the more important thing here is Paytm’s changing strategy. What the company is telling us is that any future growth will not come through expanding its payments business, but rather through improving its high-margin financial services. With an investment of Rs. 100 crore in Paytm Money, the company is focusing more on a business area with better earning potential and monetization. If the company succeeds in converting its huge payments base into an investing base, this move could turn out to be much more rewarding than even a bonus share proposal.

  • Bond Investing by Age: Strategies for Your 30s, 40s, 50s, and Beyond

    Bond Investing by Age: Strategies for Your 30s, 40s, 50s, and Beyond

    A bond investment strategy should not stay the same throughout your life. As your income, responsibilities, and financial goals change, the way you invest in bonds should change too. In your 30s, bonds can help bring stability to a portfolio that is largely focused on growth. By the time you retire, they often become a dependable source of regular income. Financial experts say the key is to make sure your bond investments match the stage of life you’re in.

    In Your 30s: Build Wealth, Stay Balanced

    For most people in their 30s, the focus is on building long-term wealth. Equities may drive growth, but bonds help reduce volatility and add stability to the portfolio. Experts suggest reinvesting the interest earned from bonds instead of spending it. For example, an investment of $5,000 at an illustrative yield of 9% can generate around $450 annually before tax. Reinvesting that income can gradually increase both your investment corpus and future returns. They also recommend avoiding the temptation to put all your money into a single high-yield bond. Spreading investments across bonds with different maturities and choosing issuers with strong repayment records can help lower risk.

    In Your 40s: Invest with Upcoming Goals in Mind

    By your 40s, financial priorities usually become more defined. Children’s education, home renovations, or other planned expenses often take center stage. This is where bonds can provide certainty. Experts recommend choosing bond maturities that line up with when you’ll need the money. If a major expense is expected in three or four years, investing in bonds maturing around the same time can reduce the need to rely on market conditions. Holding a mix of short-, medium-, and long-term bonds can also improve diversification.

    In Your 50s: Start Building Retirement Income

    As retirement draws closer, preserving capital becomes as important as growing it. Many financial planners recommend creating a bond ladder by investing in bonds that mature at different intervals. This provides regular access to funds while reducing interest-rate risk. For example, assuming that an investor holds $500,000 in bond investments at an assumed average interest rate of 8.5%, they could earn close to $42,500 annually or about $3,540 monthly, even without taking into account tax implications. A fixed-income portfolio for retirement could include government bonds, highly rated corporate bonds, fixed deposits, and other fixed-income instruments according to personal risk appetites.

    After Retirement: Bonds Help with Your Cash Needs

    Post-retirement, bonds usually serve the purpose of regular income generation to cover daily expenses, healthcare costs, insurance premiums, and more. However, experts caution against putting the entire retirement corpus into one asset class. A balanced portfolio should include liquid funds to cover about a year’s expenses, bonds that generate regular payouts over several years, and some equity exposure to help keep pace with inflation. The right bond strategy is not about chasing the highest returns. It is about making your investments work for your financial needs at every stage of life.