Importance of Technology in Servicing Clients

A decade back, mutual fund sales was a manual, paper-heavy process. Investors needed to deal with thick stashes of forms and paperwork to make mutual fund investment or even transact after making the initial investments. On the contrary, nowadays, one can make investments seamlessly by using a smartphone app on the go. This transformation of the mutual fund business is driven by pan-India internet and smartphone coverage as well as the digital-first nature of operations in recent years.

As a Mutual Fund distributor, there is no way you can generate business from the millennial and Gen Z investors without offering them technology access throughout their journey. In fact, mutual fund investment is an arena where the entire flow starting from receiving funds from the investor to investing and managing funds, and redeeming the units, can be virtual.

Before we take a look at ways of using digital technology for client servicing, let’s find out why technology is beneficial for the stakeholders.

Benefits for investors

Low paperwork

Online application forms, statements, and digital documentation ensure reduction in paperwork and greater convenience for investors.

Speedy processes

Investors get quick allotments of their units. Even the redemption process is hassle free and the timelines have become much shorter.

Convenience

One can look at different investment options and make mutual fund investments in different schemes through the same account anytime anywhere.

Benefits for distributors

Greater product offerings

Since investors can buy multiple MF schemes, there is a greater product diversity to offer.

Convenience

The online platforms are easy to access for distributors and user-friendly to navigate through.

Wider customer base

Unlike one’s personal network, online Mutual Fund distribution can allow distributors to reach out to a pan-India market.

Ways Mutual Fund distributors use technology in servicing clients

Client Relationship Management Systems (CRM usage)

Changes in technology have popularized CRM systems. Leading mutual fund distributors use advanced cloud-based CRM solutions to serve their clients. These are digital systems that help store necessary client data including personal information such as birthdays, anniversaries etc. Thus, by using a smart CRM, the distributors are not only able to manage the mutual fund investment needs of their customers, but also engage them on special days in their lives. This helps build strong rapport and trust.

Digital engagement through platforms

Social media platforms as well as websites and online communication tools are being regularly used by the distributors to connect with their clients from all over the country. They can seamlessly discuss the existing or planned investments, goals, reallocation of assets and various other topics. No matter what clients need or when and where, the online support system provided through such digital platforms ensures that the distributors are always available for the clients.

Online vaults

Data storage is a key concern in the new normal. This is where the Mutual Fund distributors are gaining the trust of their customers by encouraging them to use online vaults where they can save their personal documents. These documents can then be accessed anywhere, anytime as per the need.

At times, there are challenges faced by the distributors in the usage of technology, especially if they have earlier run manual operations only. However, the usage of technology has been critical in keeping businesses running during disruptive times and lockdowns. Moreover, the ease and speed of technology-driven customer support delivers superior client experience. There is a stronger and faster connectivity between you and your customers, and that forges a trustworthy bond. This kind of digital-first approach is going to be the new normal of Mutual Fund investment circles. By overcoming their aversion to technology, distributors can grow their business faster and wider.

A trustworthy bond between mutual fund distributors and their clients can be strengthened by personal relations. Nonetheless, advanced technology has given distributors the opportunity to improve client experience and at the same time, cement their relationship further by assuring them that they will always be there to guide them.

For AMFI/NISM certified partners only. For private circulation only.

Read More:

What is Mutual Fund?
What is SIP?

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.