India’s digital revolution has transformed the entire economic structure of the country. With the demonetization effect, rapid digitization, government incentives, regulatory initiatives, and a deliberate push for improving investor education; the industry has seen a rising growth since 2016. It created a wave in the country to go cashless and that’s how it impacted the Mutual Fund Industry to go paperless.
Today technology has become an integral part of the MF industry and is used widely in each and every aspect—from fund management to transaction processing, and from customer servicing to distribution. Additionally, customers also feel more empowered and confident about their investments, as they have access to more sources of online trading, direct-to-consumer advisers and low cost automated solutions for portfolio and risk management.
The government, too, has played a significant role in digitization through extensive efforts towards financial inclusion—spreading financial awareness to the remotest parts of the country and bridging the geographical difference. Demonetization gave the much-needed push to those who were sitting on the fence about whether to go digital or stay offline. It has created a surge of inflows into structured investments of MutualFunds.
With the advent of Fintech and digital payment platforms the demand has only soared for digital way of investments. Two key innovation drivers, Aadhar and UPI have huge potential to push the Indian Fintech ecosystem ahead.
With digitalization the mutual fund industry is at an inflection point and set to become a part of investment consideration of every investor, thereby making mutual funds a preferred choice for savings and investments.