News that Amazon will offer wealth management services in India broke on a leading daily on 8 September 2021. This certainly marks a changing landscape in the financial sector of India.
The news followed Google Pay’s offer to open fixed deposits in India. These moves mark a transition that experts are keen to follow.
Let’s dive into the details of the news bite.
Key Highlights of Amazon’s Proposal
Here are the in-depth details of the plan. It should be noted that over the years, Amazon Pay has expanded its services in the credit and payment sectors of India.
- Amazon’s subsidiary Amazon Pay will offer wealth management services.
- It has partnered with Kuvera, an Indian investment advisory firm, to offer wealth management services to up to 50 million Indian citizens.
- This move seems to respond to Google’s Pay’s offer to provide fixed deposits to its customers.
- The company aims to simplify lives and fulfil the aspirations of its loyal customers. Moreover, it seeks to help solve the payment and financial needs of customers.
Details of Wealth Management Firm Kuvera
Following are the details of the wealth management firm:
- Kuvera started in 2017 and is a SEBI registered wealth management company.
- Arevuk Advisory Services owns this company.
- It is one of the first tech-enabled platforms that provides its clients with a goal-based and direct mutual fund investing in India.
- Presently, the platform has more than one million customers and a combined investment of Rs. 28,000 crores.
How Will the Tie-Up Work?
When a person logs in to his/her Amazon Pay account, he/she will see a wealth management icon on the screen. However, once the individual clicks on this button, Kuvera’s services will take over the entire process.
Moreover, the entire transaction process will take place through the Amazon Pay app. At the outset, Kuvera will only offer investments into mutual funds and fixed deposits. Later, it will provide diverse offerings as the need or demand arises.
This is Amazon’s first wealth management venture world over.
Amazon is responsible for distributing the service, while Kuvera is responsible for managing the customer’s money. The sheer size of India’s population is a deciding factor for global companies training their eyes on the country. Hence, the biggest global companies are keen to gain a foothold in India to tap into its human resources. As companies like Google and Amazon seek to enter into the financial sector, widespread changes are expected.
Frequently Asked Questions
- When did Amazon Pay start in India?
Amazon Pay started in 2017. However, it was delayed by a year because of issues with data localisation and privacy regulations.
- What sort of platform is Kuvera?
Kuvera is an online platform for mutual funds, digital gold, cryptocurrency exchange, fixed deposits and US ETF investments.
- Does Amazon have any other tie-up wealth management services?
No, this is Amazon’s first tie-up wealth management service anywhere in the world.