'Earlier, not many knew of mutual funds; now SIP is a verb'

The CMO also explains how 4G, fintechs have elevated mutual funds’ reach

How has online access to mutual funds impacted the interaction between investors and your business? Looking ahead over the next decade, how do you expect this to evolve? 

The mutual fund industry has been one of the most progressive industries within financial services to embrace digital innovation ahead of the curve. Over the last five years, the customer journey has become much easier with the government’s rollout of the India Stack and regulatory support.

Two events have been pivotal to the shift to digital. The first was the increasing penetration of 4G in 2017-18, and the second, albeit unfortunate, was the pandemic. Investors have been consuming products and services digitally - eCommerce, food, etc. Hence the transition to buying mutual funds and interacting with AMCs digitally has become seamless. AMCs welcomed this shift – it has become easier and cost-effective to engage and interact with investors and prospective investors. Another significant element is the ability to deliver personalised content and services.

One unique aspect of India is that we have significant leapfrog moments – we skipped the pager revolution and leapfrogged straight to the mobile, skipped 2G and 3G, jumping ahead to 4G and 5G. Our entire ecosystem has benefitted and will continue to benefit from the digital playbook.

Looking ahead, with digital breaking down geographical barriers, the whole world is a distributor’s customer base. Plus, with all the processes and platforms already in place, email, social, WhatsApp, chatbots, etc., servicing investors has become all the easier and more efficient.