Soon you will not have to wait for the start of a new month to withdraw your commission. KFintech has developed a technology that computes commission on a daily basis and is working with partner AMCs to introduce instant commission withdrawal facility for MFDs.
Sathish Nuggu, Chief of Operations & Technology, KFintech said that the new initiative will allow MFDs to view their daily commission earnings and withdraw it as and when they need. "They will be able to withdraw the accumulated commission partly. It's up to the AMCs to decide what percentage MFDs can withdraw before the month end," he said.
KFintech will introduce a new platform for the purpose.
UTI and Axis Mutual Fund are likely to introduce the feature this Diwali. LIC and Mirae Asset India will also do it soon. The RTA plans to take the technology to all its associated AMCs by the end of this year.
At present, KFintech computes commission earnings within 3 days of the start of a new month. The data is then sent to AMCs, who release the payments from their end.
How did KFintech make it possible?
Calculation of commission is a lengthy process as it involves a lot of data crunching and checks. This is the reason why your commission statement takes around 3-10 days to develop.
To find a way around, KFintech has invested heavily in new age technologies like big data and cloud to minimise the processing time.
"The entire logic has been re-engineered to make it straight forward. We have used big data and cloud to hasten the process further," Nuggu said.
What's next?
KFintech has plans to introduce a pre-paid card that will allow MFDs to withdraw money directly from ATM. The RTA says it will look to collaborate with banks, NBFCs and AMCs for the purpose.
