Fintech to bring down operation cost as well as acquisition cost: Srinivas Jain, SBI MF

economictimes.indiatimes.com:

Srinivas Jain, Executive Director, SBI Mutual Funds, spoke to ET Now on the sidelines of the Global Fintech Fest (GFF). Jain said: “Fintech will be big. There is this beautiful saying in English that we always overestimate the short term and underestimate the long term. So whatever I am going to say, what it is going to be in five years will surely be 5x of that. It is very difficult to articulate what it is going to be in five years. But for sure, we are still underpenetrated when it comes to fintech technologies reaching the masses.”

How fintech helps banks and mutual funds
The cost of acquisition of customers will only keep going down. Digital gives the capability to bring the cost down over a period of time. In fact, the acquisition costs have already come down thanks to all the DPI stacks that are there, whether it is Aadhaar, UPI, and things like that. So operationally cost will come down, acquisition cost also will come down.

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Is the coming down of cost impacting the consumer in any sense?
100% it should impact the consumer, because at the end of the day, if operating costs are going to be lower, the benefit of the operating cost will be passed on to the customer. And that is what regulators, all the large institutions are pushing for.

So the mutual industry reached 3x. How big part did Fintech play in this?
Fintech is playing a very important role. For example, in the case of onboarding of investors, Fintech has been one of the most critical places for the entire