In 2018, when digital payments company, Mobikwik, announced its foray into wealth management, it realized that many first-time and small investors shy away from investing their savings into mutual funds. This is majorly because of the fear of lock-in periods or the time taken to access their money upon redemption.
The Gurugram-based startup decided to develop a product that will resonate with the needs of underserved masses. This is how Kwik Save was designed in partnership with Reliance Nippon Life Asset Management. Upasana Taku, Co-Founder, MobiKwik claimed that this feature within the MobiKwik app will ensure high level of liquidity, low risk and significantly better returns than a fixed deposit.
Q: What is unique about MobiKwik’s strategic partnership with Reliance Nippon Life Asset Management to launch ‘Kwik Save’?
A: Kwik Save is a feature on the MobiKwik app in the Mutual Funds section that allows investors to invest their savings in a low-risk fund with higher returns than their bank fixed deposits or savings bank account by parking their excess funds into Reliance Liquid Fund. Most savings bank accounts give an annual interest of 3.5% to 4%. With inflation hovering around 3.5%, a customer’s savings bank account could result in a loss.
The advantage of Kwik Save over other liquid fund investment is when a user is redeeming his/her investment. Most liquid funds will transfer the redeemed amount into his/her bank account within 1-2 working days. With KwikSave the user can sweep amounts as little as INR 100 from their bank account into Kwik Save and yet have instant access to their money through a 24x7x365 Instant Redemption feature where funds are credited back to the customer’s bank account in less than a minute. The investment process is simple and can be completed in less than 60 seconds.
Q: Is there a limit to the number of times a customer can withdraw money?
A: Kwik Save’s unique offering allows users to withdraw money multiple times a day based on their needs, up to 90% of their balance in Reliance Liquid Fund or a maximum INR 50,000 per day.
With this unique auto-sweep product, we are revolutionizing wealth management, by providing users the convenience and ease of starting their investment journey.
Q: What are your target markets for this product and your go-to-market strategy for it?
A: This partnership will allow us to cater to first-time and young investors who shy away from investing their savings into mutual funds because of the fear of lock-in periods or the time taken to access their money upon redemption.
Our KwikSave product is instantly available as a feature on the MobiKwik app to our 90 million user base. They can sign up for this within seconds with no physical paperwork and start saving immediately.
Q: Which other BFSI companies will be part of vendor stack for Kwik Save?
A: We have currently only partnered with Reliance Nippon Life Asset Management for KwikSave.
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