Access to affordable internet plans and a focus on technology, at a time when fintech firms were entering the fray, has played a key role in spreading awareness and education about mutual funds, while helping the industry offer flawless customer service, says Anuj Kumar, managing director, Computer Age Management Services (CAMS), India’s largest mutual fund transfer agency.
While speaking at the Global Fintech Fest 2024 in Mumbai, Kumar said that the accessibility of affordable internet has played a key role in reaching “100 crore people, because they all have the same smartphone and the same cheap Rs 100-150 internet pack".
Further, talking about how technology has helped grow SIP numbers, Kumar said, “You don't just register the SIP; you make sure it is triggered on time, you make sure that the investor gets the right NAV for the right date.”
This process involves coordinating with over 200 banks, including smaller cooperative banks with limited banking software, he added while talking about leveraging technology for growth of the MF industry.
Incidentally, SIP numbers have been setting new records on a monthly basis in terms of net inflows. In July, a record Rs 23,332 crore worth of net inflows was witnessed through SIPs. The monthly net SIP inflows have stayed above the Rs 20,000 crore mark for the last four successive months.
Kumar also highlighted that currently they register 70 lakh SIPs in a month as an industry, and most of these are registered by the RTAs.
"That number is now close to 10 crore a year. I'll not be surprised if there’ll be a year when we have 10 crore new SIPs coming in,” he said adding that there are of course fall-offs in the base, there is some attrition, etc. That net number is smaller, but the gross number is what we deal with."
The head of CAMS also said that the transition from traditional batch processing to online systems has further empowered the mutual fund ecosystem. “Today everything is now online,” Kumar said, adding how digital advancements have streamlined transaction acceptance, API access for distributors, and real-time updates for investors.
Despite the complexities, he noted that the industry has managed to deliver “almost flawless customer service,” ensuring smooth transactions and minimal errors.
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