DriveWealth to cater Indians in the United States via Hemista

Rick Steves

A recent report found that the household income of Indian American families are on average USD 120,000 per annum, surpassing all ethnic groups and white Americans as well.

Hemista has deployed DriveWealth’s portfolio management system, Autopilot, to provide a cross-border robo-advisor designed for the specific needs of Non-Resident Indians in the U.S, the highest earners in the country.

Offering diversified portfolios of ETFs allowing the ability to invest in both Indian and U.S. companies, Hemista will not only use DriveWealth’s portfolio management system. The brokerage infrastructure company will also be the custodian and broker-dealer that Hemista uses to manage client accounts.

Hemista’s platform is specifically designed for immigrants who may not be familiar with the U.S. financial landscape and are also interested in investing in their native country.

Bob Cortright, founder and CEO of DriveWealth, said: “Hemista has built a fantastic product for a very specific and significant client segment here in the U.S. We’re thrilled to partner with them to advance the democratization of financial services among the expatriate community.”

A recent report found that the household income of Indian American families are on average USD 120,000 per annum, surpassing all ethnic groups and white Americans as well. This is twice of an average American. Black Americans earn on average USD 41,511, while Latinx earn USD 51,404, and White Americans earn USD 67,937.

Gurumoorthi G, founder of Hemista, commented: “We’ve found the current investing products available to Indian immigrants simply do not serve their unique needs, especially when it comes to investing in their home country. This is what we’ve set out to address as we built Hemista, so that NRIs can have access to personalized portfolios that are delivered with diversification and cost efficiency. We couldn’t do it without the support of partners like DriveWealth, who through their modern brokerage infrastructure, provide the foundation for our offering.”

DriveWealth has recently acquired a NYSE floor trading firm known for servicing the institutional marketplace. Cuttone & Company has formed the institutional division of Drive Wealth Holdings.

DriveWealth’s full-stack, cloud-based, and API-driven solution allows new or existing financial services businesses to quickly access cutting-edge technology and solutions without the need for extensive in-house development.

The company facilitates the latest trends in retail trading, such as fractional share ownership, Robo advisors, and round-ups. In October 2021, the firm secured $56.7 million in Series C funding led by Point 72 Ventures. That took the companies external funding to just over $100 million raised since 2018.

30% of the firm’s orders were placed outside of normal trading hours. Something that DriveWealth believes shows that retail traders are not day trading or trying to time the market.

“Embedded finance” is the term that DriveWealth uses to describe the marketplace that it addresses, and its a market that is being driven by new younger investors. The fact that 48% of the new accounts opened in DriveWealth’s network, in Q4 2020, were opened by traders under the age of 30 and that 78% of the accounts were opened by traders under the age of 40 is a testament to that.

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