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The Indian mutual fund industry currently stands close to half a trillion dollars as against 45 trillion dollars of its US counterpart. In fact, the US MF industry is poised to reach 76 trillion dollars by 2025.
Citing these figures at the Cafemutual Ideas Fest 2023 (CIF 2023), Sreekanth Nadella, CEO, KFin spoke about the long way that the Indian MF industry has to go and the need to accelerate this growth journey. He said that the traditional ways of distribution may not work and an MFD’s role will transform into something profoundly different.
In this context, Sreekanth emphasized the need of embracing technology beyond transactions to scale up this growth faster.
Sreekanth suggested that every MFD, irrespective of their business size should adopt technology not only for creating client convenience but also expanding business.
The RTA CEO said that MFDs should use customer relationship management (CRM) software to simplify client acquisition, retention and engagement process.
Also, integrating business system with third-party Application Programming Interfaces (APIs) like transaction platform, KRAs and RTAs can further simply operational burden of MFDs.
In addition, MFDs can use technology to hire the right set of talent and build a business eco-system which equips the entire team to work remotely and collaboratively in clients’ interests, he said.
Given the existing pressure on profitability and economies of the asset management industry, MFDs can eliminate non value added/redundant activities and reduce back-office operating costs through technology.
