Well articulated! It’s a great idea to have a percentage of the bill amount being saved in a separate bucket that associates with a goal. One key aspect would be to differentially grow the respective goal bucket at a rate higher than the savings account rate. At present this is mostly being done manually.
I feel one of the ways to imbibe confidence is to build an experimental Savings pot, where a user gets to divide the proposed savings into say three buckets -
- In the first, he/she invests based on his appetite - driven by his / her instincts
- Second, the Robo advisor chooses the portfolio based on the appetite/profile collated
- Third, auto investment. the Robo advisor chooses the portfolio to maximize returns (irrespective of your appetite)
If we are able to convince users to try this with a marginal investment and show how each bucket has performed, and if the auto investment feature consistently provides higher returns, then it will slowly become a preferred choice.
The key could be to let users see for themselves - It will be more like gamification were you compete with the machine and also gladly lose! (The firm can also reward people who beat the machines with their choice of portfolio.)
This can be started with a small amount (say INR 500 in each bucket / or the marginal goal-based amount accumulated) before the user actually starts committing for a long term goal-based investment driven by algorithms. (This is applicable for users who still need to develop the confidence)
Do let me know your thoughts, @sahil-sorathiya @sneh.baxi