Neobank Dinero, located in Hyderabad, has established a strategic agreement with India’s only listed discount broker 5Paisa to assist new-age retail investors in investing in alternative low-cost investment products. Dinero will assist customers in meeting their lifestyle objectives by investing in ETFs and giving them customised offers and rewards. In addition, developing the habit of investing in ETFs as a secure investment alternative in unpredictable markets assists end-users in building a robust portfolio.
This partnership will allow Dinero to offer state-of-the-art order execution capabilities with a specific focus on passive funds (ETFs) for users on the platform. In addition, users on Dinero’s platform will also be able to open new Demat accounts with 5Paisa to conduct transactions and link their current 5Paisa account to Dinero’s platform.
Commenting on the partnership Chief Business Officer of Dinero, Nikhil Potluri said “Given the strong interest from retail investors in the capital markets, there is no doubt the future is passive investing. Indian ETFs are on the verge of exploding, similar to the adoption of passive investing in the US and Europe. Our thesis is that ETFs provide an easy entry to capital markets for young retail investors and provide a significant cost arbitrage to Mutual Funds with respect to expense ratios, entry/exit loads, etc. Most mutual funds have been unable to outperform the broader markets in the past few years. Therefore, ‘ETFs Sahi hain’ is our motto. At Dinero, we are at the forefront of this revolution and are working towards building experiences around capital markets to cut information overload and reduce the entry barrier for the young and new retail investors. Our partnership with 5Paisa will allow us to turbocharge this revolution, and we are excited to have them as our partners in this journey.”
Meanwhile, 5Paisa’s Chief Marketing Officer, Raisa Kazi stated, “Over the past 15 years, we have seen a huge influx of new retail investors in the Indian Stock Market. These are first-time investors looking for control, flexibility, transparency, and access to different online tools to manage their portfolios and investments. One of the visions at 5paisa is to connect with such investors and enable them to invest in different Financial Services and Products. With such belief, we drive our Strategic Alliances and Digital Partnerships to empower our partners and enable them with Financial products and Services on their platform with our fully hosted solution. We are pleased to partner with Dinero and provide the ease of trading and investing to the users.”
Dinero in the month of January 2022 will be coming out with the beta version of their app for their customers which will help to meet the financial goals of the investors through low cost investment products.