CXOToday has engaged in an exclusive interview with Amit Adesara, Designation – Co-Founder, Deseo Fintech Private Limited
- Could you elaborate on DESEO’s PAAS advisory technology platform specifically that enables advisors, brokers distributors and end clients to create a ready to go end to end advisory ecosystems?
In the evolving landscape of investment advisory, specialized advisors like Registered Investment Advisors (RIA) and Research Analysts (RA) now offer personalized services. These experts, proficient in investment management, face challenges in complying with SEBI guidelines for tasks such as risk profiling, KYC, advisory agreements, and fee collection. Additionally, they need to manage non-core operations like client communication and renewals to reach a broader investor base.
To efficiently reach investors, RIA/RAs must either establish their distribution channels or collaborate with existing entities like Brokers, MF/PMS Distributors, and Insurance Advisors. The seamless execution of advice/model portfolios becomes crucial for a satisfactory end-customer experience.
DESEO provides a cost-effective, cloud-hosted technology ecosystem, ensuring compliance with statutory guidelines for all partners in the value chain. This solution facilitates RIA/RAs in managing model portfolios, meeting SEBI guidelines, and, on the other end, offering a white-labeled subdomain to distributors (Brokers, PMS/MF Distributors, Insurance Advisors) with deep integration into their Order Management Systems for investment execution. Our platform currently enables investments in equity and ETFs and we plan to add more asset classes as we progress.
- How does DESEO ensure a seamless and user-friendly experience for both investors and advisors on its platform?
DESEO offers a complete solution for a RIA / RA to manage their model portfolios, comply with SEBI guidelines with digital client on-boarding that covers Client Risk Profiling, Client KYC, Client Esign Agreement and initial subscription fees collection.
Platform manages all communications with their end clients for renewals, portfolio rebalancing, Investment Reports and others. Client Rebalancing and Renwals are seamless wherein RIA / RAs can monitor the client status through various statistical analysis and reports. RIA / RAs also gets advance analytics to monitor their clients portfolio performance as well
For end investing clients the portal provides all adequate SEBI compliant information for him / her to take informed decision as to which model portfolio suits them and then proceed to get on-boarded. Upon subscription, they have the flexibility to execute the model portfolio with their Broker on a click of a button.
Thereafter for investor, platform tracks the performance, manages corporate action and dividend computation on the invested portfolio and allows the investor to top up and redeem the portfolio seamlessly
- How do you ensure scalability and reliability in your technology infrastructure?
To ensure this the entire technology stack is designed and built in such a way that personal information of clients are encrypted in the entire journey and also while in storage. We have additional checks and balances at infrastructure level too to ensure scalability and security. System is designed to also suit the needs of clients in case their data is required to be maintained separately As far as reliability is concerned each B2B partner is on a scalable infrastructure wherein the resources at the network are auto scaled on demand.
- Are there specific measures in place to comply with data privacy regulations in the financial sector?
As explained, end investors personal information which is most critical are encrypted during transmission and at storage. This is vital for the entire eco-system and the same are non-accessible to us also
- Does DESEO integrate with other financial platforms or tools to provide a comprehensive service to users?
Yes, there are systems that we interface / integrate with.
For RIA / RAs for digital client on-boarding we are integrated with Digilocker. For Esign we are integrated with a leading service provider in this segment and for collection of fees for RIAs / RAs we use payment gateway partner services.
Similarly for smooth trade execution, we have deep integration with Broker partners Order Management System to authenticate the client, place order and reconcile trade response. We also offer EOD reconciliation with back-office to ensure the data is matched. For Phyigital journey we are also integrated with Order Management Systems. Depending on brokers requirement we have also implemented EDIS at the time of sell transaction and are open for more of such need based integration.
Platform can also plug in customized integration / enhancement on a case to case basis as well
- Does DESEO leverage artificial intelligence or machine learning algorithms to enhance its services?
No, our platform is built on the base wherein SEBI Registered RIA / RAs manage their model portfolios based on their internal research and analysis. These are human intelligence driven advisory services.
However, in future we look forward to provide tools to both Advisors and Investors which will be based on AI and Machine Learning to enhance their advisory / investment decision
- How does DESEO plan to scale its technology infrastructure as the user base grows?
We are already designed to scale for large volume of operation / transactions. The software technology as well as the cloud infrastructure is well planned and executed. We also have the advantage to host a complete independent instance for each clients in case if required.
