FinEdge: Bionic Advisory for a Digital India

Abstract

FinEdge is a personal financial services solution provider based in Gurugram, India. They are focused on providing online and phone-based wealth management services to clients across India, generating revenue largely through distributor commissions from asset management companies whose mutual fund products they distribute to clients. This case traces the journey of FinEdge through the eyes of its co-founders Harsh Gahlaut and Mayank Bhatnagar. The case outlines how the company developed its current business model of bionic advisory which combines human and machine-driven client servicing, using mutual funds as their underlying tool to develop goal-based customized personal finance plans. This is discussed in the context of the maturing mutual fund and asset management industry in India, and how investor behavior seems to be evolving over time. The case further highlights how FinEdge has used technology and an innovative voluntary fee model to differentiate itself. Finally, it ends by outlining the major challenges FinEdge faces such as increased competition from a variety of players including large retailers and the growing popularity of ‘distributor-less’ direct mutual funds.