20 Important Lessons from “Rich Dad, Poor Dad”

Many people work very hard in their life, few work 10+ hours a day but eventually do not save much and never get rich. 

Robert Kiyosaki, author of the book explains smart ways to escape this “rat race”. I have summarized the book for your quick, better understanding. Please note that this book has very big impact on my life and my goals.

Summary from the Book:

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History of insurance

I was talking to my insurance agent for renewing my car insurance. This is when my 10 year old kid asked, “Dad, what is insurance and why do we need it?” After my call, I explained to him that this is to cover risk in case, any unforeseen event occurs. Again, my kiddo asked out of curiosity as usual that who started it? This is when I started scratching my almost bald head. I immediately googled it & learned how it started & why it started and explained to my son. What I learned was bit surprising for me as well. Read More…

Liquidity Management

What is Liquidity Management?

I used to stay in a hostel when I did my engineering. My home was not very far, (just 220 km) and I used to go home on alternate weekends or once a month. Whenever I went home, my father always gave me money for pocket-expenses. At that point of time, I never understood how my dad ensured this continual flow of cash whenever required. However, once I started earning & looked back, I discovered how difficult it was to ensure constant money flow when it is most required, like over the weekend or in the first week of month. Professionally, when I started working in the Liquidity management domain, I thoroughly understood the nuances of it and started appreciating the liquidity management of my father and its need in the corporate world.
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With the COVID-19 pandemic, customers are wary of visiting branches. This has really given a booster to digital banking.


Neo banks, also known as Challenger banks or smart banks, are digital banks with no brick-and-mortar physical branches. The Fintech, which does not use legacy banking systems or pre-existing infrastructure, can be qualified as a bona fide Neo bank.


Since a decade, Neo banks are popular in Europe, Japan, the US, and Australia. They have started their operations in India for a few years. It will take some time before they become disruptive and transform the banking landscape. As of now, Neo banks, partner with existing banks because they do not have a banking license. 


With no backlogs of legacy systems and out-dated business processes, Neo banks are considered highly flexible and adaptive to new technologies.  Thanks to zero overheads of physical branches and manpower in those branches, they have an overall lower cost structure and are able to offer attractive interest rates for deposits and loans both.


Cloud-based Neo banks offer –

  • Omnichannel and Immersive customer experience
  • Contextual offerings
  • 24×7 Customer support using chatbots, AI and ML
  • Scalable infrastructure
  • Highly automated services like auto reconciliation, regulatory compliance-ready reporting.
  • Cash flow forecasting with AL and ML-based predictive alerts
  • Meaningful spending insights using AI
  • Open banking compliant API
  • Automated and digital workflow thereby reducing processing time to a few seconds/minutes
  • ML based risk Analyser
  • Innovative features like goals-based savings


Normally, Neo banks operate in targeted and un-served segments like

  • Tech-savvy millennial
  • SME and mass at the bottom of the pyramid who are ready to adapt to new technology to earn little more interest
  • Niche banking service like payments, budget, receivables and spend management
  • Provide Forex cards, credit cards, personal loans


Some notable Indian players are Open, NiYo, Yono, Kotak 811, PayZello, Instantpay, Yelo, India Post Payment Bank, EzoBank, and Zeta.


These Neo banks are here to stay and grow by leaps and bounds in the coming days. And they are going to disrupt conventional banking as Airbnb, Ola/Uber had disrupted the traditional models.

The Smart Art of Investment

When I started my career in 1996, I was only concerned about my salary. I only knew that the more money you earn, the more money you can have. I did not have much idea about investing neither any one guided me. As tax filing return dates used to approach, financial consultants would request me to take Insurance policy to save tax. I was happy to invest in the same. I felt happy while investing in such tax savings scheme considering that I have reduced tax liability. I never gave a thought that how much returns it would generate over the period of time. Read More…

Virtual card

What is Virtual Card?

Due to the recent demonetization in India to curb black money & fake money menace, one of my family friends was complaining about cash shortage. I asked him, “why don’t you use credit or debit card for online shopping? You will not have any issues.”  He replied that he was scared of using credit and debit cards for online shopping, so I explained to him as following on how to use the virtual card for online transactions, instead of real debit or credit card. Read More…

Biren Parekh