Consumer preferences are changing rapidly, which is evident by a huge shift towards e-commerce. So, in an era where technology will play a crucial role in taking your business to the next level, you need to embrace it rather than see it as a threat. So how does this changing consumer behavior impact you?
Take for instance the change in the mode through which AMCs are now getting inflows. The MF industry used to get majority of inflows through cheques. Now, many investors are using NEFT, RTGS and IMPS to invest in mutual funds.
So far, mutual funds have been by and large sold physically. According to rough industry estimates, only about 5% of industry’s inflows come through the online channel (directly and through distributors). But experts believe that this is set to change. With the emergence of stock exchange platforms for MF sale and now with SEBI’s plans to sell mutual funds through e-commerce platforms, the future seems to be digital.
To live up to investors changing preferences, AMCs are already coming with platforms, apps and other facilities like e-KYC to provide the ease and flexibility to invest in mutual funds. “When we talk about digital it is not just about improvising our app or website. It is about finding a way to engage with the new segment of audience who are reluctant to interact face-to-face. The new generation expects to get messages through the digital medium. So the challenge for the industry will be to cater to this new audience. Another area which we want to explore is payment banks,” said Suraj Kaeley in an interview with Cafemutual.
Apart from providing transaction facility to investors, advisors are adopting various tools and apps in their day-to-day operations to increase productivity. “Technology is indeed a boon. In today’s fast changing world, we cannot hope to work efficiently without leveraging the benefits of technology. In fact, we just saw the demise of telegrams in India. What was the cause for this and the answer is obvious - technology. We try to automate the processes as much as possible so that our teams can work really efficiently. I use Lastpass.com (for storing user id and passwords), Google calendar, Google maps, Scan biz cards, Dropbox (to store scanned documents) and other tools which make my life a lot easier,” said Gajendra Kothari of Etica Wealth Management.
To get more insights on this topic, Cafemutual is holding a panel discussion consisting of experts who will deliberate on the benefits of using technology in advisory business.
To sum up, advisors will get to learn about the three important aspects of technology at CIFA 2016:
- Client acquisition: Without using technology, scaling up business will remain a major challenge for you. Thus, using website/newsletters/blogs to generate leads, leveraging platforms and social media will play a key role in growing your clientele.
- Transaction and client servicing: The industry is seeing a gradual shift from physical to online transactions. Learning how to use apps and other tools will help you ease create a better client experience and improve your productivity.
- Handling back office operations: A study shows that advisors spend a substantial portion of time (29%) on operational/administrative activities. Thus, having a robust back office support will allow you to focus more on business development activities. Learning how to automate back office operations by using the best CRM, client reporting system and digitalizing documents will help you cut down costs, increase efficiencies and minimize human error.
Click here to know more about Cafemutual IFA Event 2016.