How Finshots is boosting financial literacy in India
What's the story
While doing MBA at IIM Ahmedabad, Bhanu Harish Gurram observed that financial literacy in India is quite inadequate. He also realized that financial news is often filled with technical jargon, only catering to individuals within the industry.
In an interview with NewsBytes, he once opened up about his journey toward addressing this problem with one article every day delivered through his 2019 start-up, Finshots.
Quick overview
Finshots delivers 3-minute reads about everything finance
Finshots is an online financial news platform that delivers just one news piece a day sans the typical terminology-heavy language.
The crisp infographic-rich articles take around three minutes to read and cover wide topics, including weekly round-ups.
After Finshots, Bhanu also launched Ditto, a platform that simplifies insurance policy selection for the average consumer.
Early years
IIT Roorkee graduate from Andhra Pradesh
Bhanu hails from a middle-class family in Andhra Pradesh. After acing the 10th grade exams, he was advised to train and apply for admission to IITs.
He graduated from IIT Roorkee in 2013 with a degree in electrical engineering and was hired by Nestle India during campus recruitment. Bhanu worked at Nestle for close to three years.
A small cog
He realized corporate 9-to-5 grind wasn't for him
Over time, Bhanu realized he wasn't adding significant value at work. His role at Nestle was comparable to a small cog in a larger system, he told NewsBytes in 2021.
He put in his papers in 2016 to pursue MBA at IIM Ahmedabad. During his studies, he interned at Amazon, which further reaffirmed his aversion to the structured corporate life he had just escaped.
Jargon minefield
Bhanu realized financial news should be simplified for millennials
At IIM, Bhanu met Shrehith Karkera and Pawan Kumar Rai. At the time, Rai was working on a way to simplify stock markets for millennials.
Diving deeper into the idea, Bhanu understood that financial news from major media houses was loaded with industry-specific terminology, as though it wasn't intended for the masses.
It was clear that millennials must be helped traversing these jargon minefields.
New beginnings
Bhanu co-founded Finception with fellow IIM alumni in 2018
After completing his MBA course, Bhanu and his batchmates Shrehith Karkera and Pawan Kumar Rai founded Finception in 2018. Lokesh Gurram, an IIT Delhi graduate, worked for Samsung in South Korea for two years before joining the venture.
Finception delivered explanatory long-form stories for a year. The objective was clear: to simplify financial news for the masses.
Food for thought
Finshots just asks for 3 minutes of your day
In 2019, a separate brand called Finshots came about when the team realized that audiences suffered from information overload.
Finshots delivers only one piece of news a day. Bhanu explained that readers spend just three minutes each day, but in a month, they would have read about 28 topics.
Additionally, a little information at a time acts as food for thought.
Investment
Finshots received funding from Rainmatter in September 2019
In September 2019, the start-up received an investment of Rs. 4 crore from Zerodha Broking Ltd.'s fintech fund and incubator called Rainmatter.
The founders were also part of IIM Ahmedabad's IIMAvericks program which gave them a monthly stipend. Nevertheless, Bhanu said Karkera taught part-time classes at coaching institutes like T.I.M.E. and Career Launcher, so Finshots could hire more interns and grow.
The complete picture
Well-researched content earned Finshots subscribers despite zero advertising
Explaining how Finshots shaped content, Bhanu said the idea is to keep readers abreast with financial news without the technical mumbo jumbo.
He emphasized that Finshots's content is well-researched, and the platform attempts to paint a complete picture for the readers.
The company doesn't spend a dime on advertising, said Bhanu. Finshots's subscriber base has grown just by word of mouth.
Making better choices
Ditto by Finshots helps simplify insurance policy selection for readers
Bhanu said that while Finshots educates people about the financial markets, readers are still left asking which financial product is best suited to their needs.
Enter Ditto, a product under the Finshots brand aimed at simplifying insurance policies for people.
Bhanu said this is one of the many ways Finshots intends to simplify financial products and financial planning for the masses.
Peace of mind
'Understand your policy' feature highlights pitfalls in users' existing policies
Ditto simplifies legally-worded policy documents and helps people compare insurance policies. The platform uses customers' age and budgets to narrow down the search.
Bhanu explained that Ditto reads the fine print for customers and lays out what particular policies cover and what they don't. This gives customers peace of mind and helps them structure personal finances better, he said.
No surprises
Ditto would sell better policy rather than chase commissions
Bhanu rightly said that insurance is usually used long after it is purchased. This makes it important that customers know of potential surprises buried in the documentation.
He noted that Ditto would sell the customer a better policy rather than a sub-par product in exchange for higher commissions. He said that this will help the platform grow, just like Finshots, through word of mouth.
Starting early
Youngsters should be taught personal finance at undergrad level: Bhanu
Talking about financial literacy in the country, Bhanu said youngsters should be taught personal finance at the undergrad level because, around that time, people start earning from freelancing or part-time jobs.
He says that, at the very least, people should be taught to buy insurance early on in life when policies are cheaper and they have options to pick from.
Making an impact
Bhanu advises entrepreneurs to prepare to toil during initial years
While Bhanu admitted that Finshots shoulders responsibility regarding the advice it gives to readers, he expressed that he is happy to have made an impact.
Talking about his journey so far, he observed that things turned out quite differently than he initially anticipated.
People should be ready to put in at least two years of hard work if they start up, he added.
In the pipeline
Finshots will continue to simplify financial products for commoners
While Finshots is gradually building a reputation for simplicity and credibility, Bhanu said that it is the least he could do to help commoners steer clear of scams, misinformation, and the pitfalls of poor financial planning.
Outlining future goals, he stated that either through content on Finshots or via products such as Ditto, the team will continue to simplify financial products for customers.