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Cafemutual had recently launched ‘The Rs. 100 lakh crore Wish List’ initiative where it invited MFDs to share path-breaking ideas that can take the industry to the Rs. 100 lakh crore goal.
Of the 40 odd entries, the jury shortlisted four entries that promised to fast forward the Rs. 100 lakh crore dream.
Let us read these winning ideas.
Brijesh Kumar Singh, Jodhpur, Rajasthan - Implementation of ‘Uniform KYC’
Today, investors have to undergo KYC multiple times. Whether she opens a bank account or invests in mutual funds, she has to submit KYC documents every time. Authentication of KYC also takes time.
Implementing ‘Uniform KYC’ can simplify the onboarding process and create a better investor experience. Also, the industry should leverage network of post office and regional rural bank to reach out to rural and semi-urban areas to increase penetration of mutual funds.
Kamal Chaudhary, Mehsana, Gujarat - SIP Rath for rural financial inclusion
Rath yatras are very common in villages and they draw a lot of attention from the villagers. Similarly, we can carry ‘rath yatras’ to spread financial literacy.
We may name these as ‘SIP rath’ yatras and decorate the rath with educational posters. Additionally, playing music related to SIPs during the yatra can attract huge crowds and arouse curiosity amongst them. This could be an effective way to connect with rural people and educate them about mutual funds.
Pankaj Ladha, Kota, Rajasthan - Disclosing commission break-up
Transparency is the key to building client trust and confidence. While the industry discloses MFD commissions in statements, there could be a break-up of the total amount like GST and net commission. Also, it should also carry a message that commission income is subject to taxes like GST, income tax and so on. This gives investors an idea about tax liability of MFDs and improves transparency.
Vivek Mallik, Haridwar, Uttarakhand - Joining hands with NGOs and fintechs
Many NGOs and fintechs have a strong presence in rural markets. They have a good understanding of these areas and know their financial requirements. We can leverage this expertise to expand our investor base.
The industry could design a formal structure and involve MFDs as intermediaries to conduct educational sessions on incentive basis.
