TechProcess Solutions ties-up with leading private and nationalised banks to boost Mutual Fund transactions online
TechProcess Solutions Limited (TPSL), India's leading provider of transaction processing, data processing and document management software solutions, has announced some major upgrades to its integrated 'Online Mutual Fund' platform, provided as a hosted solution to financial services distributors in India.
Tweet-- TechProcess Solutions Limited (TPSL), India’s leading provider of transaction processing, data processing and document management software solutions, has announced some major upgrades to its integrated ‘Online Mutual Fund’ platform, provided as a hosted solution to financial services distributors in India.
Firstly, the platform now boasts online payments integration with 15 banks such as Axis Bank, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Rajasthan, Deutsche Bank Citibank, Corporation Bank, Federal Bank, HDFC Bank, ICICI Bank, Karnataka Bank, Oriental Bank of Commerce, South Indian Bank, Yes Bank, Union Bank of India and Vijaya Bank. This enhanced bouquet of online payment options is expected to provide an impetus to online mutual fund trading volumes in India.
Secondly, TechProcess has also built an ‘online SIP’ feature into the platform, which is expected to be a major attraction to retail investors desirous of steadily building up a retirement corpus while negotiating market volatility.
The platform enables clients of various broking houses to link up their existing bank accounts with their brokerage account; in order to make payments or receive redemption proceeds effortlessly. It also helps investors and distributors to buy, sell and redeem mutual fund units in a seamless fashion, thereby speeding up the procedure of online mutual fund investments. In addition to that, it also helps reduce transaction costs considerably from the distributor’s perspective, with some of the cost benefit being passed on to the investor.
A recent study in the early part of this year to understand “Online Indians” and their net usage bahaviour has shown that there are currently over 47 million internet users in India and the regular internet users are growing at an annual rate of 10%. Moreover, 75% of them belong to the consuming and aspiring class and a sizable portion of them are exposed to transactions through credit card, internet banking as well as transacting on shares online.
“The integrated web based Online Mutual Fund platform along with the tie-ups with leading banks as well as financial services distributors will certainly make a significant contribution in bringing about an increase in volumes of Mutual Funds transactions in India. While industry bodies such as AMFI do not report online transaction volumes separately, it is estimated that online mutual fund sales do not exceed 5-7% of overall sales. TPSL now provides a wide choice of 15 banks, this will ensure that clients can transact from their banks or existing banks and are not forced to open an account with a particular bank, just to be able to transact online.” said Mr. Bikramjit Sen, CEO, TechProcess Solutions Ltd.
Also relevant here is the SEBI’s decision to do away with entry loads on mutual funds in India w.e.f. August 1, 2009 means that distributors are looking beyond the paper-based model, for more efficient and cost-effective ways to process large transaction volumes. TechProcess has been receiving on average an enquiry per day from distributors and IFAs on its online platform.
Distributors already on the platform have seen significant traction in recent times. Online transaction volumes as a whole, being managed by TechProcess, have jumped 63% in the month of June’09 over May’09.
Entry load is a load charged by the mutual funds to meet distribution and marketing costs. Previously, the entry load was deducted by the Mutual Fund/ AMC upfront from the investment amount of an investor and then passed on to the Mutual Fund Advisor/distributor. However, as per the new norm passed by SEBI, from August 1, 2009 the entry load on all Mutual Fund Schemes will be eliminated. Therefore, any commission paid to the AMCs for the distributors will be now paid by the investor directly to the distributor. These initiatives will go a long way in empowering retail investors as they will have the freedom to directly negotiate on the fee that they pay based on services rendered by distributors while purchasing mutual funds. Moreover, this initiative is also expected to provide an impetus to online and automated approaches to mutual fund transaction processing.
“Online Mutual Fund” Platform is a web-based hosted service which offers complete data integration with Asset Management Companies and Registrars, thereby empowering clients of a mutual fund distributor to buy and redeem mutual fund units online.
Investors, who are customers of distributors, can log on to the distributor’s web site and perform activities like purchasing, redeeming and switching fund units in a paperless fashion. Funds are seamlessly channeled from the bank account they have chosen to map to their trading account. Likewise, redemption proceeds are also deposited automatically into the same bank account.
Distributors get a plug-and-play, full service proposition, including automated synchronization of transaction feeds with all transfer agency systems such as Karvy, CAMS, Templeton etc.
Notes to Editor
About TechProcess Solutions Limited:
TechProcess Solutions Limited (TPSL) is India’s leading provider of transaction processing, data processing and document management and software solutions in India. The company offers a wide range of solutions spanning electronic transaction processing, under RBI’s leadership and constant support.
The company commenced its operations in the year 2000 with the launch of the unique and innovative concept of Electronic Bill Presentment and Payment (“EBPP”) in India. It was initially incubated by ICICI Venture and subsequently the company raised capital from other reputed international Private Equity majors.
Currently, TechProcess Solutions Limited (TPSL) provides customized solutions to over 200 institutions and commands substantial market share in the Transaction Processing industry in India.
The Industries covered are:
· Banking and Financial Services
· Asset Management Companies
· Depository Participants and Broking Houses
· Credit Card Companies
· Insurance
· Telecom
· Power
· Not-for-Profit
TechProcess Solutions Limited (TPSL) is a leading provider of transaction processing services in the financial services vertical with client share amounting to:
100 % in the telecom vertical
70% in the Insurance domain
80% in the mutual fund vertical
and a majority of the leading banks in the country.
Over the years, the company has developed significant expertise in processing large volumes of financial transactions through diverse payment systems available in the country. TPSL has processed 100 million electronic transactions (amounting to a value of Rs. 40,000 crore), in addition to about 7 million documents in the year 2008-09.
TPSL has ISO 9001 – 2008 and BVQI certified Best Process Management practices in Operations, Quality and Technology. The company has a pan India Presence through 80 locations with a team of more than 2000 talented professionals backed by an in-house technology team providing proprietary software applications. We are ISO 27001:2005 compliant. The Technology Unit of TechProcess Solutions Ltd has been recommended as fully compliant at Maturity Level 3 within the Software Engineering Institute’s Capability Maturity Model Integration for Development (CMMi – DEV) version 1.2.