How WealthDesk’s Unified Wealth Management Interface Can Be a Game Changer for the Asset, Wealth, and Brokerage Ecosystem

WealthDesk’s Unified Heritage Interface (UWI) has the potential to revolutionize the wealth management ecosystem. The emergence of such a secure interface – backed by SEBI-registered professionals who help investors build a diverse mix of assets – is more crucial than ever, as the brokerage industry in India is witnessing a steady increase in l trading activity with trading volumes reaching an all-time high.

Business activity in India is booming with overall revenue reaching 179% year-on-year in nine months in FY22, according to national ratings agency ICRA. With a significant increase in retail participation, the total number of Demat accounts increased to 806 lakh in December 2021 from 551 lakh in March 2021. With a growth of 28-33% YoY, the Indian brokerage industry is expected to reach a total income of 27,000 rupees. -28,000 crores in FY22.

Currently, there are around 95 million Demat accounts in the country, indicating a high demand for a solution like UWI. Unlike the number of Demat accounts in India, there are only 1,300 Registered Investment Advisors (RIAs) in the country, which means that only one RIA is available for 71,000 investors.

Fill gaps

For years, wealth management products such as portfolio management services (PMS) and alternative investment funds (AIF) were not available to retail investors due to the minimum investment requirement high. This has created a huge gap between the needs of retailers and the solutions offered.

While retailers wanted innovative wealth management solutions and ease of investing through technology, the retail wealth management market presented them with fragmented, multi-stop journeys. As a result, the mutual funds offered by the AMCs (Asset Management Company) were becoming more and more important, but the right package of wealth solutions on these products for retail investors was missing.

To meet this need, Ujjwal JainFounder and CEO, WealthDesk released a white paper that highlighted how Unified Wealth Interface (UWI) can democratize wealth creation and aims beyond simply bridging the gap between retailer desires and existing solutions.

“We built UWI as a web-wide interface not only to fill the existing gaps, but also to uplift the whole ecosystem. UWI enables investment makers to create innovative multi-asset investment products, integrate them into Wealth baskets, then distribute them at scale through an ever-growing list of over 100 UWI partners in a cost-effective, transparent and efficient way. We are excited about the possibilities that UWI offers to all stakeholders in the asset, wealth and brokerage ecosystem,” added Ujjwal.

The gap, the bridge and the road ahead

In the current ecosystem, the interaction between investors and players is either limited or even non-existent. These existing asymmetries and the lack of communication lead to gaps in services and products. Something the UWI can address, acting as a universal catalyst that can create an integrated ecosystem that allows all stakeholders to interact with each other, integrate service offerings, and provide a holistic experience to investors.

Built on an open architecture, UWI enables relevant stakeholders, including investment managers, brokers and content providers, to see through all parts of the architecture without constraints and make the necessary additions that can be easily installed by the end user. For this reason, stakeholders do not need to build the technology stack independently and simply fulfill their technology requirements through UWI’s plug-and-play solutions. Fueled by interoperability, UWI enables all disparate players in the ecosystem to communicate with each other, identify needs and opportunities, and then design the service and product offering accordingly.

By allowing investors to easily connect to their preferred broker account to execute trades, UWI ensures that the investment journey is transparent, efficient and fast. According to the white paper, UWI will address the wealth management needs of the broad swathes of investors who will enter the investment landscape in the coming decades – investors whose expectations are shaped by their interactions with digital technology. . On a global level, UWI would democratize the investment value chain, support product-side innovation, improve access to premium investment products, and enable internet-scale distribution, which would elevate the entire ecosystem of assets, wealth and brokerage.

The Impact of UWI on Assets, Wealth and the Brokerage Industry

The white paper highlighted that in addition to bringing interoperability through a robust technology layer to effectively bridge these gaps and enable unhindered product innovation, UWI can also seamlessly connect research, product manufacturing, production and large-scale distribution. The WealthDesk platform can help with portfolio management and distribution, while providing assistance with regulatory technology, marketing and execution.

This will allow WealthBasket managers to focus entirely on creating multi-asset investment products, without worrying about how to package and sell the offers. Then, WealthBaskets can be distributed seamlessly to online and offline investors by leveraging existing distribution networks of brokers, distributors and RMs with the additional network effects on UWI.

Through these holistic offerings, retail investors can easily invest in premium wealth building products in addition to brokerage platforms and other trading platforms in a cost-effective manner. The whitepaper also provided an overview of the current investment landscape and highlighted the prevailing gaps in the asset, wealth and brokerage ecosystem.