CAMS looks to position itself as a technology product company for mutual fund services and processes

CAMS looks to position itself as a technology product company for mutual fund services and processes thumbnail

Synopsis

The company’s digital properties, like the CAMS website and myCAMS, clocked new highs in investors usage while CAMS also expanded the digital suite for investors with the launch of MF central, the unified portal to service investors across all Mutual Funds.

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Registrar and transfer agent of mutual funds,

(Computer Age Management Services Limited) said it is veering towards being a technology product company for mutual fund services and processes rather than being a tech enabled service provider, which is how the company had positioned itself about five years ago, Anuj Kumar, Managing Director of CAMS told ET.

He said this shift in sensibility means that every component of the company’s delivery is conceptualised, imagined and designed in a product manner.

“So it is very different from a service fulfilment point of view and is more towards creating strong products and components on the overall platform. Most of it, we do ourselves but for other things we bring in either professional companies or startups to help out with the core design.”

This comes as the company reported revenue growth of 33% taking it to Rs. 227.60 crores for the quarter ended September. Further, the company’s Profit After Tax grew 48% to Rs. 72.56 crores when compared to the same period last year.

Further, the company saw a surge in new SIP registrations seeing a historic high of 44 lakh in the quarter. CAMS went on to add that mega New Fund Offers in the second quarter garnered over Rs 30,000 crore of AUM.

The company’s digital properties, like the CAMS website and myCAMS, clocked new highs in investors usage while CAMS also expanded the digital suite for investors with the launch of MF central, the unified portal to service investors across all Mutual Funds.

The CAMS website serviced 21 lakh visitors each month on an average in Q2FY22 while myCAMS has been adding 1 lakh new investors every month and crossed 1 crore logins in September, the company said in a statement. MFcentral went live in September 2021 and had over 75000 registrations in the first month.

“Today, you could go to a bank’s website, and ask for a loan against mutual funds, and you will be navigated seamlessly to the CAMS website, you can select the mutual funds where you have your investments, mull the limit of how you want to borrow, and within a five or six minute session, you would have bought the limit from the bank. This started happening in about 2019. But today, we are live with several NBFCs and banks and this whole product portfolio is broadening out,” Kumar explained.

He went on to add that another example of how the company has integrated with the other parts of the ecosystem lies with the reconciliation process. On a busy day, CAMS does payments and settlements work for up to 70 lakh transactions, he said. What makes the process challenging is that unlike in broking, for instance, where a customer’s brokerage account, bank and demat account are all very tightly linked, in contrast it is a loose relationship on the mutual fund side.

“You could come and pay us from any of your bank accounts,” Kumar explained. “You could be paying different mutual funds from different bank accounts and we are dealing with hundreds of banks every day pulling in information from them, both through API’s and non-API and doing the reconciliation through not tightly coupled relationships, and with sub-optimal information.”

To deal with this CAMS has developed its own smart algorithms which has almost 10 to 11 layered nuanced logic to do the matching. Kumar said the company rarely goes wrong with the matching as in a year the throughput is almost 250 to 300 lakh crore.

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