Every time the markets dropped, Pratik Shah had his task cut out. He knew his investors would use this opportunity to invest. “My clients look forward to such opportunities to invest. However, I did not have the technology to make it happen for investors wanting to get the same day’s NAV. Those days were tough,” recalls Bharuch-based adviser Pratik Shah.
When news about BREXIT hit world markets, Pratik Shah executed more than 90 transactions in mutual funds using mobile applications of AMCs to execute these transactions. Interestingly, this was the first time Pratik used apps to execute these transactions. Encouraged by the ease and convenience, Pratik has now registered himself on a leading stock exchange platform to enable execution of bulk transactions. He says that his number of transactions have gone up twice over ever since he started using mobile apps. Pratik also has a website which provides links of AMC websites which is used by his many of clients to invest online through net-banking. Even providing a facility as simple as this has helped him increase his volumes.
Like Pratik, many IFAs across the country are taking to technology in some way or the other to provide convenience to their clients and boost their own productivity.
Mumbai based Mukesh Dedhia is one such IFA who is using technology extensively to boost his team members’ productivity. Mukesh has created 6 WhatsApp groups of different departments like sales, operations, RMs which helps his colleagues co-ordinate with each other better. He also uses Google Calendar which records his meetings. This can be accessed by all his colleagues to know his schedule. He plans to use Skype to increase his client meetings. “I’m planning to give iPads to RMs so that they will be able to connect with some senior official through Skype in office even if they are out for meetings with clients. They can resolve any query through Skype on the go,” says Mukesh. To communicate with clients, he has formed a broadcast list of clients which is used to share important news, developments and educational articles.
A slow revolution is brewing considering the way mutual funds are now being sold to investors. So far, mutual funds have been by and large sold physically. With the emergence of stock exchange platforms for sales of MFs and now with SEBI’s plans to sell mutual funds through e-commerce platforms, the future seems to bring variety of transaction methods with online being yet another option.
Bhadresh Jhaveri, a Vadodara based IFA, says that a majority of his clients use exchange platform to transact in mutual funds. His clients use online platforms provided by NSE and BSE to invest in mutual funds. “Technology will help me build scale and volume,” believes Bhadresh.
Bhadresh says that exchange platforms have helped him cut down costs, save time and grow his business. In fact, his transaction volumes have increased substantially since he started using the exchange platform. Besides, exchange platform help distributors expand their geographical footprint by catering to outstation clients.
Mumbai based adviser Vatsal Shah says that using the exchange platform to transact in MFs has helped him increase volumes. The exchange platform allows him to execute bulk transactions at one go. “Imagine how difficult would it be if we were to inform 100 clients to switch from equity to debt or to make fresh investment. The exchange platform helps us execute transactions faster without the hassle of filling up forms,” says Vatsal.
For providing a basic service such as giving account statements, IFAs used to send physical copies to clients. Now, many IFAs are providing this service on their websites. Vadodara based adviser Ulpesh Raj has a website which provides log in access to view portfolio to his 5,000 clients. Thus, he is able to save money on sending physical statements like portfolio summary through courier. “A lot of my clients see their portfolios online. So technology makes them self-reliant and less dependent on me,” says Ulpesh. His clients no longer have to call or visit his office every time they wish to invest, redeem or get a copy of their portfolio statement. This automation helps him concentrate on business development activities.
Also, having a website increases his visibility. Today, many of us like to do an online research on any product or services we wish to purchase. Thus, a website helps him showcase his services and expertise to a large number of prospects.
Similarly, Delhi based IFA Madhu Sudan Uppal has a website which allows his clients to log in and see a consolidated view of their portfolio. “They can log in from anywhere and see their portfolio. This cuts down on paperwork,” says Madhu.
Besides using technology to transact and acquire new clients, advisers are automating their back office processes to streamline their operations. Pune based adviser Bharat Phatak who manages Rs. 2,800 crore AUA has adopted technology in a big way. He has automated the four important operations – planning, analytics, transaction and compliance. Since a lot of his operational tasks are automated, this gives Bharat enough time to engage with clients on a personal level, which is essential in advisory business.
Technology is helping IFAs in every aspect of their business - from planning, back office handling to client servicing. For instance, earlier advisers used to prepare financial plans physically (many of them still do). Slowly, they are using software which helps make this process faster and simpler.
Like Bhadresh and Vatsal, Mukesh also uses NSE MF II platform to execute transactions in MFs. In fact, he has converted 80% of his offline clients to invest through NSE MF II. “I’m able to execute more number of transactions as compared to earlier. It saves time, money and cuts down paper work,” says Mukesh. Mukesh currently uses different software’s for mutual funds, insurance and broking. Now, he is planning to club all clients under one platform. He’s getting this custom software developed by a software firm.
To sum up, the scope for mutual funds in India is significant. India is getting younger, and clients are getting more and more discerning. Delivery of timely and quality service is soon becoming critical to growth, and business development. Use of technology has empowered several advisers to meet and surpass their client’s expectations. If you are one of them, do tell us your story here.
