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Over the last few years, tools like artificial intelligence have become major talking points. One topic that is often discussed is the impact this technology can have on distributors.
To gain insights on this, Cafemutual Confluence 2024 (CC24) hosted a panel discussion on Technology disruption in distribution. The panel consisted of Amit Basu, Founder, Director & CEO, Symphonia, Girish Ajgaonkar, COO, Happyness Factory and Shirish Patel, CEO, Prudent Corporate Advisory Services. It was moderated by Hyderabad MFD Ravi Kiran Monigari.
Let's look at the major points covered by the panel.
Amit Basu outlined three ways the market can be disrupted. First is creating better products or services, second is offering products or services at a lower cost than currently available, and third is providing access to products and services for previously unreached segments. He brought up how time is a critical commodity that's limited, perishable, and cannot be stored, making efficiency crucial in business operations.
Amit believes AI can help maintain consistent asset allocation despite market movements, purchases, redemptions, and switches. Technology can also predict which clients are likely to transact in the coming month. Amit said that the predictive model used by him had a 74% accuracy rate, which will go up as it continues to learn.
Shirish Patel emphasized that MFDs need to look beyond basic transaction capabilities. He believes technology should provide end-to-end solutions for acquiring clients, tools for content creation and video production, and all-round campaign management capabilities. Furthermore, AI should help categorize clients based on multiple products, and automatically communicate with clients for key information like the monitoring of portfolios. This will help clients feel connected. Shirish also brought up how automation can save 20-25% of time spent on daily operations.
Girish Ajgaonkar stated that technology should solve specific problems rather than being implemented for its own sake. He gave the example of how technology can help appeal to investors by creating personalized goal-based emailers using information available about the prospect. He believes technology should ultimately help capture a bigger share of wallet from each client.
Shirish also outlined how MFDs can improve their digital presence through various means. This includes creating digital business cards and professional websites, implementing digital onboarding processes, and maintaining records by recording and storing meeting minutes for future reference. He focused on the importance of providing regular digital updates to clients and offering them the ability to track investments through mobile applications. He believes all tools should be integrated rather than working in isolation.
Girish also brough up how technology contributes beyond just client relationships, and modern tech infrastructure makes businesses more attractive for succession or sale. He explained that proper tech implementation helps sustain a multi-generational business, while the right technology can make business processes repeatable and scalable.
Amit ended the session by explaining that each business has offerings that fit into three distinct areas: hygiene factors (basic necessities), good-to-have features, and differentiators such as AI and advanced technology. Without embracing a differentiator like AI and technology, businesses risk being stuck in the middle instead of going forward.
