Café Mutual’s IFA event (CIFA) 2019 was held with the theme ‘Lago Raho IFA Bhai’, aimed at advisors and distributors interested in practical ideas and deep insights to grow their business. The event witnessed a spectacular gathering on February 21st, 2019 at Taj Lands End, Mumbai. A galaxy of speakers comprising India’s best-regarded advisors, experts, MF industry’s most celebrated CIOs, and top CEOs covered a range of interesting and carefully hand-picked topics.
Mr. Anuj Kumar President and CEO of CAMS delivered a power-packed presentation on the topic “Digital Power to Distribution”- to enunciate why embracing digital technology is not an option anymore and how a wide range of digital initiatives are readily available for distributors.
Digital technology is transforming everything we do and is deeply influencing every walk of our life, be it purchasing products, consuming services and making decisions. The digital megatrend has set its footprints across every industry like financial services, government, retail, transportation, education and more.
Today’s digital platforms are empowering entrepreneurs to accelerate innovation for their business with quick access to markets, finance and marketing using plug and play digital tools. Mr. Anuj Kumar said, “Digital is helping enterprises and entrepreneurs completely reset and redefine service benchmarks”. He also highlighted that data-on-digital influence in financial products is among the highest.
The recent BCG report highlights 70% of urban consumers use digital in purchasing financial products. This trend is predominant in the insurance sector witnessing an end-to-end digital adoption of these services. Additionally, the private banks and their branches in India are fast becoming digital compared to their western counterparts. Bank customers are self-managing their transactions and the branches ensure the deepening customer relationship through the digital route.
Why do Mutual Fund distributors need to exploit digital power?
CAMS data points to 42 lakh new investors added in MFs for 2018 and the lion’s share of it, i.e. 10 lakhs, was done only by IFAs compared to other distribution sources.
Here are a few interesting facts shared by Mr. Anuj Kumar for IFAs:
- 60% from T 30 cities – investors seeking digital services
- 60% SIP – needs to be serviced digitally to investors over the next 3-4-year period
- 50% of new investors are millennials – delivering a digitally powered service is the only way
- 77% via paper – not a scalable model, has cost implications and severely limits growth
Digital Power from RTAs and AMCs
CAMS, being one of the leading RTAs in the Mutual Fund industry, has leveraged its superior technology and launched innovative products for Distributors
- An eKYC solution for customer on-boarding
- Digital transaction submission and statements
- Mailback services provide a vast array of digital reports and MIS
A sneak-peak on the features upcoming CAMS Distributor platform was also presented:
- Investor on-boarding with eKYC
- Seamless transaction initiation
- Generate investor statements
- Vast reports and insightful MIS
- Dashboards to monitor the business trends
- Revenue tracker
The session was concluded with two key takeaways:
- The power of digital is shaping lives and businesses. This is the reality and the new generation is indelibly influenced by this digital power.
- It’s a great time for IFAs to formulate a strategy to enable digital transformation in lockstep with their existing processes.