According to the Insurance Regulatory and Development Authority of India (IRDAI) Annual Report for 2013-14, there were 2.12 million financial advisors in India. The growth in the number of Financial Advisors is pegged at a healthy 3.1%. This is great news, especially after the industry saw a sizeable number of Individual Advisors quitting from 2010-11 to 2013-14. These numbers make a lot of sense for a rapidly developing country like India. The intricate reach to every nook and corner of our country that our Financial Advisors are capable of, holds great relevance for our economy. Millions of Indians across all socioeconomic strata depend on these Financial Advisors for solutions on Financial Planning and Social Security. To put things into perspective, The Per Capita Financial Advisors is significantly Higher than the Per Capita Police Officers in India!
Now that’s the rosy picture. The Financial Advisors are a quintessential part of our economy, while not being overtly visible in our daily life. When, other major industries like Banking and Communications have relentlessly leveraged on the available technology to go the next mile and provide hyperlocal services to customers, the Insurance Industry was slightly lagging behind. Even though, the usage of technology and big data analytics have played a major part in the growth trends in the industry, it has remained largely confined to strategic decisions. A lot more could have been done in the lines of technology to enable the Financial Advisors to go the next step and connect with the end user for business growth.
The absence of actionable data backed insights and convenient end user engagement models, the Financial Advisors have to depend on experience and intuition-based sales insights. These are usually non-repeatable and significantly more time taking. The absence of such insights makes it difficult to identify need-based solutions to customers, creating roadblocks for upselling and cross-selling. Probably this was one of the reasons, new Financial Advisors found it challenging to succeed in the field and we witnessed a drop of 994,635 individual Financial Advisors in FY12.
In the era of Big Data and Mobile Internet connectivity, it is possible to enable the Financial Advisors to provide better engagement with the customers and superior business opportunities. The customer needs the convenience and education on the various plans simplified by a trusted Financial Advisor. The customer values speed, flexibility and transparency; All of which can be significantly improve in the current service delivery set up. Let’s express this service delivery gap in the form of a relatable example; An average person, typically interacts with his/her bank or mobile phone operator at least once a month. But when it comes to insurance, the interaction happens with much less frequency. This is a major barrier to reducing attrition and enabling cross- and upselling.
This is where Amit Kumar, CFP (Certified Financial Planner) & LUTCF (Life Underwriter Training Council Fellow) and serial entrepreneur Abhijith HK aim to bridge this gap with MoneyParrot. “We at MoneyParrot understand the value of a Financial Advisor in our society. We strongly believe that the Financial Advisors are irreplaceable by technology in India. Instead what MoneyParrot aims to do is to complement the efforts of the Advisors with supplementary data, insights, information and productivity tools”, says Abhijith about the vision behind MoneyParrot. Amit adds, “MoneyParrot also address the needs of clients in terms of data organizing and accessibility, so that the valuable investments are not lost. As per official records more the 65000 crore of unclaimed is lying with the government; MoneyParrot aims to address this challenge as well”.
MoneyParrot is a B2B2C platform to address the needs of the 2 million strong financial distribution community, who reside in the remotest parts of the country. With a mission to address the technological needs, empower them with powerful tools & information MoneyParrot would help Financial Advisors take informed business decisions for better productivity. MoneyParrot will help Financial Advisors get actionable insights on business opportunities, engage with clients in a deeper and more meaningful manner & give them a single point dashboard to provide exceptional service to the clients with high efficiency & convenience. The platform would also equip them with need-based solutions for their clients and redefine the way communication is done in this industry.
With Abhijith’s technical background and Amit’s 15 years of industry experience, the co-founders sure are poised to bring a revolution in the Insurance Industry. Read more Startup Stories.