The inherent biases in the financial services distribution

The financial services sector, while abundant with products, has often been limited by the biases inherent in its distribution. Traditionally, intermediaries have played a crucial role in delivering these products to customers. However, the commission structures tied to each asset class often color the advice given, leaving customers with limited options. One such overlooked product is the National Pension System (NPS), which, despite its competitive returns, is often neglected in favor of more commission-heavy products.

The Unexplored Potential of NPS in Retirement Planning

As India accelerates towards its vision of a more developed and financially literate nation, market returns are expected to consistently head north, barring any major external disruptions. In such a landscape, NPS stands out as a strong contender for retirement planning. Despite this, it is often ignored in financial planning conversations. The power of lock-in periods, coupled with the scale enjoyed by fund managers, allows for long-term investment strategies that yield significant market-linked returns.

Moreover, NPS offers several advantages that are rarely highlighted:

• Sovereign Guarantees: Providing a level of security that few other products can match.

• Negligible Expense Ratios: Making it one of the most cost-effective retirement planning tools.

• Tax-Free Benefits: Up to 60% of the corpus is tax-exempt, further enhancing its attractiveness as a long-term investment.

Yet, despite these benefits, biases persist in financial advice, often ignoring NPS due to its low commissions.

The Role of Bias in Financial Planning

Biases are a significant part of the value chain in financial services. Stories are often crafted with the ignorance of the customer in mind, leading to decisions that favor the intermediary rather than the investor. The complexities of financial products, coupled with the lack of transparency, leave customers vulnerable to recommendations that don't necessarily align with their long-term goals.

This is where Viso comes into play. Viso’s approach is designed to calibrate these layers of bias through a combination of technology and non-negotiable processes. By leveraging tech, Viso ensures that investors receive transparent, unbiased advice tailored to their specific needs. And through local, trusted financial experts, Viso offers a human touch to reinforce its commitment to empowering investors with the right information.

How Viso is Changing the Game

Viso’s framework is rooted in providing investors with access to financial products that best suit their needs, regardless of the commission structures attached to them. With the help of cutting-edge technology and a strong focus on transparency and process-driven financial advice, Viso ensures that the biases prevalent in traditional financial planning are mitigated.

The platform offers a unique blend of personalized human advice through a network of local experts, coupled with data-driven recommendations. This approach helps customers make informed decisions without falling prey to biased suggestions. For instance, NPS, with its competitive edge in market-linked returns and long-term benefits, becomes a natural choice for many when these biases are removed from the equation.

Conclusion

Viso’s mission is to democratize access to financial products by removing the biases that have traditionally colored financial advice. In doing so, it allows investors to explore competitive and reliable products like NPS, which are often sidelined.

By integrating technology, unbiased advice, and the local expertise of financial advisors, Viso is creating a new financial planning landscape—one that is transparent, efficient, and centered around the investor’s long-term success.

This is just the beginning. Explore Viso’s framework and see how it aligns with your financial goals, ensuring you are empowered with the right tools to make informed decisions about your future