Ever wonder why the instant start-up kits provided by banks upon opening a new salary account for an employee contains a cheque book which has only 5 or 10 cheque leaves? Yes, it is a cost-saving method, but the question to ask is, why giving fewer cheque leaves would cost less when cheque books are costs that banks take on for giving customers a certain number for free in a quarter?
The answer to this lies in asking yourself when was the last time you actually issued a cheque for something. The digital economy is not a catchphrase or a dystopian concept because it became a reality many years ago and then became a way of life with demonetization two years ago.
The digital economy, deeply rooted in innovative technology, was encouraged by the government so that all transactions are above board and traceable. It was also embraced by tech-savvy users who were more than happy to get their friends and family members on to the bandwagon. That is one of the reasons that Paytm has over 300 million users.
Customers of all ages now expect and demand digital transactions, and this has steadily permeated into the investments they make into mutual funds or the stock market. To stay relevant to these smart digital investors, AMCs and intermediaries need to meet this expectation head-on, or else they stand to face difficulty in acquiring new customers and retaining existing ones.
Paytm has the perfect solution and guide to help financial institutions face the expectations of investors and deliver a great experience to them.
Paytm All-In-One Payments solution suite designed for the smart digital investor
Based on our research on investor behaviour, we have classified them into two categories: Aggressive and Passive.
Aggressive investors are those who have set clear goals and milestones for their investment portfolio. They understand the risks in Mutual Funds and the Stock Market and are willing to take calculated risks to make their money grow. They watch the market, research funds, and make informed but quick decisions on putting in an order for Mutual Funds and Stocks. The last thing they want is to get caught up in red-tape and regulations that cause any delays in their investment going through. To provide these investors with an almost-instant-gratification, AMCs and intermediaries need to provide them with a payment solution where their money is realized for placing the order in the market before the cut-off time specified by SEBI. This is possible with the direct settlement option in the Paytm payment solution suite, which has a tie-up with eight banks, allows financial institutions to trigger direct settlements on-demand from a dashboard provided to them by Paytm.
That’s not all. The Paytm All-In-One Payments solution suite also comes with third party verification with 31 banks and UPI verification for all banks so that there is no delay in checking that the investor is making the transaction from the account they have registered with SEBI. This helps AMCs stay compliant with regulations without causing any inconvenience to the customer.
Passive investors see the value in making regular investments into Mutual Funds but are not people who track performance or research funds. They usually set up a SIP to have a certain amount of money deducted from their account every month. While they do not watch the market every day, they are still worried about their investment portfolio and do not want to have to deal with any challenges in having their SIPs go through. AMCs who have implemented the Paytm payment solution suite have gained access to a system that has a proven track record in eNACH Mandate setup up and one of the highest successful debit rates in the industry.
Paytm has blended their understanding of the smart digital customer and the challenges faced by AMCs and intermediaries to create the Paytm solution suite to benefit both investors and the financial institutions.