CAMS saw 4 important reasons for developing a smart phone digital solution (i.e., “myCAMS”) that mitigates the problem of paper, reach, young and retail investors and also offers a smart self-management tool.
Problem of Paper: CAMS has built electronic interfaces for Banks and Wealth Managers platforms to submit MF transactions. However, Independent Finance Advisors (IFAs) submit their investor transactions predominantly as paper forms at Registrar’s Customer Service Centers or Asset Management Companies (AMC) branches. As Transactions forms and cheques have to be time stamped before 3pm to receive same day NAV, IFAs often accept forms only till 1 p.m. or 2 p.m., so that the forms can be submitted with the Registrar by 3 p.m. Additionally, there is recurring cost of travel and time for physical submission of forms.
The exponential growth in digital transactions in financial service sector is an indication of the rapidly maturing digital habits of the population and financial transaction through myCAMS app has been steadily increasing month on month. myCAMS app has been widely appreciated by investors and is the most downloaded Mutual Fund app in the country.
Problem of Reach: Penetration of Mutual Funds in the Tier 2 and 3 remains low from beyond the Top 15 locations. The MF regulator has incentivized AMCs to expand the MF market aggressively reaching into semi urban and rural locations. IFAs are the primary distributors to secure business from beyond metros and this cadre of distributors need physical branches to submit transactions. But setting up branches to facilitate transactions receipt is prohibitive.
myCAMS as a product has a huge potential to increase investments from B-15 cities (beyond the top 15 cities). B15 cities mutual fund assets is merely 12% of total assets under management and this indeed presents a significant opportunity for distributors and asset management companies who can grow their business with the help of myCAMS.
Problem of Self Managing Investors: Another progressive step introduced by SEBI to accelerate retail investor participation is the higher NAV (Net Asset Value) for direct investments, in 2013. Direct investments are those where there is no intermediary involvement i.e. self-managed investment. Since the launch, there has been a steady increase of inflows from both corporate and retail investors. myCAMS app is developed to be a single gateway where an investor can transact and manage his/ her Mutual Funds across CAMS serviced funds with just a single login. They can diligently maintain their investment details and track performance/returns.
CAMS has been launching several “must have” and “great to have” features in myCAMS mobile app to make investing in mutual funds a delightful experience for mutual fund investors
Problem of Younger savers/ investors: As younger investors (digital natives) seek products to create wealth, their relating to the MF as a product category will depend on the ease of access and coolness, pointing to the need of a “anytime, anywhere” solution.
myCAMS has a large number of registered users in the age group of 25-35 pointing to the potential of the app with younger savers.
Author: Mukund SESHADRI