Basis: Harnessing the power of sisterhood, education and community in finance

“Can anyone suggest to me the best SIPs to invest in and also which one gives the best returns? Kindly also suggest in which company to invest to get good returns?”

“My account has always been handled by my father, and I don't even have a credit card or net banking account. But I want to learn more about it myself. Where should I start”?

Usually, searching for answers to these questions on Google throws up a deluge of information that would just confuse, discourage and perhaps, permanently put off newbies like Prateeksha and Vishwa here, who have just started waddling and taking baby steps in the humongous and scary-looking world of financial planning.

But, that is not the case on Basis. These questions, as basic and naive as they may sound are assuredly asked and answered with equal patience and enthusiasm by the Basis community. These are in fact just two of the many such rudimentary questions that come from over 1 lakh women across India, who are now waking up to the idea of becoming financially literate, empowered, and taking active charge of their money management.

On this thread, the conversation continues.

“Hey, Dipika this side. A good place to start would be the booster section on the app, where you could begin your learning journey. As for exploring your financial goals, you can take that up in our advisory section”.

Thanks to women like Dipika, they now know where to start. From inquiries about credit cards, insurance to various investment avenues and the need for financial planning, Basis is changing the way women take charge of their money- one question, one advice, and one woman at a time.

Additionally, the app is also home to regular masterclasses on various aspects of money management, concise and easy-to-understand learning modules delving into the fundamentals of personal finance, and a dedicated advisory section where women can engage in customised financial planning per their individual needs and goals.

But Dipika Jaikishan, the Chief Operating Officer and Co-Founder of Basis actually hates the term financial literacy.

“I hate the word financial literacy. I don't think there is an element of illiteracy, it's just a lack of awareness and that is not a problem that can't be fixed," she says.

And, she has set out to combat that with Basis, one of the few financial services platforms in India tailored specifically for women, that aims to raise financial awareness by leveraging the power of education and communities.

Founded by Hena Mehta and Dipika Jaikishan in 2019, this Bengaluru-based fintech, which has been downloaded over 1.5 lakh times to date, is backed by the likes of angel funds and venture capitalists like Better Capital, Kora Capital, Roka Works, Hustle Funds, and EMVC Fintech Fund. Other prominent investors include CRED founder Kunal Shah, Vice-Chairperson OF DSP Mutual Fund Aditi Kothari Desai, and more, who have reportedly invested an undisclosed amount into this transformational endeavour.

And while they describe themselves as the “bridges of knowledge and trust gaps women often encounter while making and taking actions on financial decisions,” their ambition is to target and reach over five million users over the next three years.

“We are not just an education or community platform, but rather a financial services platform," she says. The platform, which started with promoting health insurance amongst women, has recently introduced the Basis Power Card, which fundamentally allows women to take charge of their credit score and spending capacities. Notably, this is India's first card designed especially for women, which, along with these benefits, also offers curated rewards and offers that work for women.

Why Basis, How Basis?

The same financial instruments are being sold to both men and women without any special regard and care for the different demands and requirements for women, says Jaikishan. And that is something Basis intends to change.

“As an adviser, I have often noted that men and women are being provided the same financial products as answers to their financial needs. And by doing that, you are totally discounting the goals and insecurities so specific to women. You are not trying to understand her life trajectory, which is going to be extremely different from that of a man, by not accounting for a maternity break or parental care. In providing blanket financial solutions, you fail to see where she is coming from. No expert on financial planning teaches you to visualise a women’s journey and plan for it financially”

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The origins of this platform also stem from the experience of Hena Mehta, her co-founder, and the consequences of inadequate financial planning she had to face as she struggled to gather funds for pursuing her MBA at the prestigious Wharton School, Pennsylvania.

“You work hard for so many years, tick all the right boxes, only to realise that Oh! I did everything right, but did not plan for this! And $2,00,000 is not a small amount, it can’t be amassed overnight. It cost her a major chunk of her retirement savings, along with her earnings worth a few years in order to put a financial structure to that dream and achieve it,” she continued.

Jaikishan believes that, currently, there is a serious lacuna of awareness with regards to financial planning and its pressing need in the lives of women. There is no safe space to talk about all of this, and “nobody's giving any insights or recommendations which are genuinely suitable and intelligent to your situation. That’s what sets it apart. Whatever we do is for women, by women,” she adds.

Basis is home to regular masterclasses on various aspects of money management.

“She had not had a conversation with anyone about it, and Basis gave her space to start that conversation. It was heartening”.

But, at the same end of the spectrum was a 40-year-old woman, undergoing a divorce. As Jaikishan detailed “She's been working for like 18 years, earning well, but zero confidence. Most of her money is in fixed deposits and bank accounts, where she has accumulated, but not grown her wealth over the years, which meant she would not be able to meet her intended goals of financing her children’s education, something she thought was easily achievable with her current financial status. That has left her in a very vulnerable position,” she recounts.

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During the earlier days of the Basis, the firm had also experimented in the space of women-specific health insurance recommendations. Jaikishan feels this is significant, given the dynamic changes the lifestyle and life choices of women encounter every day demand a certain level of financial safety.

“Figures suggest that one in four or five women now are probably battling with a lifelong condition. We are exposed to so many vulnerabilities outside our control as women, we are more prone to cancer than men. There is a high chance we might be hospitalised more often than men in our lives, and that demands money. Hence, health insurance serves as a defence to these huge costs, so that all savings are not drained in the face of illness”.

One in four or five women now are battling with a lifelong condition.

In the end, it's just about building a structure into your financial life, which is critical for everyone, and perhaps more so for women. Once you have a financial plan of sorts, however simple, things start to get on track. And as Jaikishan likes to put it, “If you are not compounding your money, you are only compounding your problems!