Money matters: Understanding India’s evolving investment landscape

Just as it is in many other walks of life, India is undergoing a transformative shift in wealth-tech. Call it the influence of millennials, or simply a growing propensity of a rising generation to invest and grow one’s wealth, the wealth management sector is seeing a sea change on account of these myriad factors. And this is a burgeoning market on the up and up; India’s wealth-tech market is expected to reach $63 billion by FY25, up from $20 billion in FY202.

Indeed, India’s investment landscape is evolving, and to get a handle on where it’s headed, we caught up with Sougata Basu Executive Committee Member, India FinTech Forum. As the founder of CashRich, a rapidly growing wealth-tech startup with over 400,000 users, he has revolutionised wealth management by offering intelligent investment solutions through a user-friendly and innovative mobile app.

In addition to his role at CashRich, Mr. Basu is a driving force behind the India FinTech Forum, where he serves as an Executive Committee Member. The Forum is a platform dedicated to making India a global leader in fintech, with over 4,500 companies and 37,000 individuals collaborating to shape the future of the industry. As part of the India FinTech Forum’s flagship event, IFTA, Mr. Basu is instrumental in bringing together the brightest minds in fintech, banking, and investment, helping to foster the growth of the ecosystem.

Excerpts from our conversation are below.

As an Executive Committee Member of the India FinTech Forum, you have a broad view of the ecosystem. What key infrastructure gaps do you believe need to be addressed to accelerate wealth-tech adoption among India’s growing middle class?

From my vantage point as the Executive Committee of India FinTech Forum, I see four critical infrastructure needs that must be addressed to accelerate wealth-tech adoption. First, we need enhanced integration of financial data sources to provide unified portfolio views. The Account Aggregator (AA) framework is in the right direction and its usage needs to increase. Second, strengthening digital literacy and cybersecurity infrastructure is crucial – something we’re actively supporting through initiatives like the Fintech Olympiad. Third, we need standardized APIs from organisations such as KRAs, RTAs etc. to reduce operational friction with new-age platforms, particularly related to KYC, digital signatures etc.

As you are also the founder of CashRich, please elaborate how CashRich uses Dynamic SIP technology to adapt to market conditions automatically. Looking ahead, how do you see the intersection of AI and behavioral finance evolving to help retail investors make better investment decisions while managing their emotional biases?

During the COVID-19 stock market downturn in March 2020, our Dynamic SIP strategy effectively safeguarded investments via prior debt fund allocations. It also enabled users to switch from debt to equity at market lows. As of 2024, this approach has demonstrated its value, with certain equity mutual funds appreciating a few times over this period.

The convergence of AI and behavioral finance represents a transformative opportunity in wealth management. Through our Dynamic SIP technology, we’re already seeing how AI can create intelligent guardrails that protect investors from market volatility. Looking ahead, I envision AI evolving into a sophisticated financial coach that not only analyzes market conditions but also understands and adapts to individual investor psychology. For instance, our systems will increasingly help identify personal behavioral patterns and provide tailored guidance that promotes disciplined, emotion-free investing. This combination of AI-driven insights and behavioral science will be crucial in democratizing wealth creation for millions of Indians.

What emerging trends in user experience and financial education have you identified as crucial for wealth-tech platforms to succeed in converting first-time investors into long-term users?

Our hands-on experience, particularly through the CashRich Fintech Bootcamp, has revealed three game-changing trends in user engagement. The enthusiasm and skills demonstrated during the CashRich Fintech Bootcamp 2024, where participants received expert mentorship and hands-on experience with WealthTech platforms, validate this approach. First, we’re seeing remarkable success with personalized, bite-sized learning journeys integrated directly into the investment experience. Second, our Investment Triggers feature demonstrates a simple way to build good investment habits. Third, national-level initiatives like the Fintech Olympiad have proven instrumental in driving financial literacy and user engagement. Through this platform, we’ve seen how competitive learning environments spark genuine interest in wealth management among young professionals and students. What’s particularly exciting is seeing how these elements work together to transform first-time investors into confident, long-term wealth builders.

With your experience bridging traditional finance and technology through IFTA, what regulatory innovations do you think would best support the next wave of wealth-tech innovation while ensuring adequate investor protection?

The future of wealth-tech regulation needs to balance innovation with investor protection. Based on our experience with IFTA and the success of features like Dynamic SIP, I believe we need a three-pronged approach: First, expanding regulatory sandboxes for testing AI-driven portfolio management solutions; second, implementing adaptive frameworks that evolve with technology while maintaining robust investor protections; and third, strengthening data privacy regulations to build user trust. This balanced approach will create an environment where innovations can flourish while ensuring that investor interests remain paramount. Our participation in industry forums has shown that when regulations are well-calibrated, they become enablers of innovation rather than barriers.

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