Wealth management company IMMPL is focusing on building a technology platform to scale up its service offerings to clients
Bengaluru - Oct 18, 2016. RedNewswire/-
Internationl Money Matters Pvt. Ltd (IMMPL) is a Bengaluru-based wealth management company. Two financial services industry veterans Gopal Srinivasan and Narayan Seshadri has acquired majority stake in IMMPL.
IMMPL is focusing on building a technology platform to scale up its service offerings to clients and also to reduce the costs of the service, said Srinivasan, chairman and managing director, TVS Capital Funds.
“Wealth is a growing segment. Traditional models of wealth management are being challenged by lower fees. I have always thought that fintech can be transformative for this business,” he added.
Srinivasan and Seshadri both have invested their capital in the company as per their personal capacity. Sheshadri is a former head of Andersen Business Consulting in India.
The investment done in the company is less than 10 crore, but they plan to invest around Rs 25-30 crore when the company scales up.
Seshadri is soon to start a non-banking financial company called Epimoney Pvt Ltd, joined hands with financial services veterans Sanjay Nayar and Vikram Sud.
IMMPL was founded in 2001 by Lovaii Navlakhi, certified financial planner with more than 30 years of experience in wealth management industry. IMMPL: has over 500 active users with Rs 850 crore in assets under management(AUM).
“Our idea is to find similar opportunities in South and West India and make similar acquisitions to build out fintech driven platform. Pune, Chennai, Hyderabad, Baroda, Coimbatore, Vijaywada are all ideal markets, where the professional community having larger investable financial assets is growing." The company will also migrate to larger ticket sizes, targeting clients with Rs1-10 crore of investible assets.Over time, IMMPL plans to grow to 1,000-2,000 clients with AUM of Rs10,000 crore to Rs15,000 crore, he added.
According to Srinivasan, the duo decided to back IMMPL, given its focus on a fee-driven business model and an organization culture focused on customer retention and satisfaction.
“What is missing in the wealth management business today is customer satisfaction and retention. You can build up AUM, (assets under management) you can distribute several products, but having a strong culture that focuses on customer satisfaction and retention is difficult to find,” he said, adding that wealth management is a pure culture business and IMMPL has built a strong customer-focused culture.
Srinivasan also said that the fact that more than 60% of IMMPL’s clients pay fees for the services is another differentiating factor of the company. He further added..
“A client fee payment model rather than a product distribution fee model, we believe is the right way to build a sustainable wealth business, because then there is no misalignment between company and clients."
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