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What was the rationale behind launching Aditya Birla Financial Services (ABFS) Privilege Club?
We believe that IFAs are one of the most important links for mutual funds to reach and serve the common man. Over time, we observed that this critical relationship had a tendency to become transactional. While it was business as usual, a certain warmth and a community concern was missing. Thus, we launched Aditya Birla Financial Services (ABFS) Privilege Club in January 2011 to nurture and support this vital community through the course of their career across aspects ranging from both personal security as well as long-term professional security. What we sought to create is a genuine long-term partnership and not just a yearly incentive or convention qualification program.
What changes have you brought about in this scheme?
It remains a priority for us to keep evolving our engagement with IFAs to keep the program aligned and relevant to changing times. We recently launched ABFS Privilege Club 2.0 based on the feedback from our IFA Advisory Council and Privilege Club members. The new design is more inclusive and yet competitive. It offers a level playing field by having separate criteria for IFAs from small and large cities for each club. IFAs representing smaller markets now would have an opportunity to participate in the most elite segments of the club. Also, new benefits like the Management Development Program (MDP) have also been introduced to support the professional as well as personal growth of the members.
What benefits do advisors get as a part of this club?
We believe that the opportunity for growth in the mutual fund space is vast. Our new Privilege Club reflects this belief through a Benefits Model called ‘SKY’ - Success, Knowledge and You.
‘Success’ recognizes and celebrates the contribution of our IFA Partners across our Annual Award Functions where members get the opportunity to interact with the leadership team from BSLMF and network with like-minded partners.
‘Knowledge’ focuses on the continuous development and refinement of IFA’s skills through a variety of training programs through our ‘NIPUN’ platform. ‘Knowledge’, now includes Management Development Programs which offers members professional courses from premier institutes in India.
‘You’ offers benefits like Golden Age Plan, Life Insurance (up to Rs. 80 lakh cover for the IFA), Medical Insurance and Child Scholarship for the IFA and his/her family. Benefits from ‘You’ offer IFA members personal insurance even beyond their years of active service.
How many advisors are in this Club?
Currently, the ABFS Privilege Club has over 12,000 IFAs spread across 170+ locations.
How have the advisors responded to this initiative?
The response to Privilege Club from the IFA community has been overwhelming. We have had over 1,300 IFAs enrolling for the Golden Age Plan (GAP). Over 900 of these IFAs voluntarily contribute 10% or more of their net brokerage to GAP and over 35 contribute 100% of their monthly brokerage towards their retirement. This kind of commitment from IFA members is a testimony of how much these benefits are valued by them.
What is the criteria to be a member of this club?
ABFS Privilege Club is a loyalty and engagement program that acknowledges and rewards the loyalty and continuous support of our IFA partners. To be eligible for various privileges, IFAs need to maintain a certain Quarterly AAUM market share with BSLAMC. Once the threshold number is achieved, the higher the long-term assets and the gross sales market share, higher the club points, club status and the privileges.
With so many regulatory headwinds facing distributors, what is your advice to advisors at this juncture?
The opportunity in the advisory business is immense and the supply is limited (only 10,000 active IFAs). Any change in regulation will be in favor of advisors and a well regulated market will enhance and reinforce the credibility of the profession and its business prospects. IFAs efforts will be supported by robust fund performance, various investor education initiatives and operational conveniences like eKYC. Quality entrepreneurship in your business will be rewarded more than ever before! Therefore, it is time to put our faith in the robustness of the system and this grand opportunity and go brave to garner more customers.
