Mumbai, Oct 13: The Unit Trust of India has embarked on a major technology drive that will bring about a sea change in its investor service and relations. The Rs 90-crore project when completed in a year will change the face of UTI, said UTI chairman PS Subramaniam. The technological changes will also enable the Trust to offer information on unit holdings on the Internet. With the US-64 turbulence behind, the mutual fund giant is silently shifting its focus to technology.It has appointed TCS to develop a generic software that will help offer investors any-time investment facility including repurchase/switch over to other schemes. The web-enabled software will have features for E-commerce also. The project is proposed to be completed in 2000.
UTI has already installed an ERP software at 17 locations which will be installed in all its branches and offices by February, 2000. Intended to resolve inter-branch reconciliation, it will also enhance the quality of MIS by using V-Sat connectivity. ERP along with an M-Fund software (under implementation) will improve UTI's ability to compute daily NAVs.
UTI has embarked a business process re-engineering (BPR) exercise, for which McKinsey has been retained.
The BPR and the generic software will help the Trust streamline all sales and after-sales processes across schemes and branches. This solution will provide flexibility to take care of the complexities involved in adding new features each time a scheme is launched or modified, leading to better time management and lower costs.
With investible funds of over Rs 63,000 crore and about 45 million accounts, UTI despatches more than 20 million income distribution warrants, six million repurchase/maturity cheques and 10 million certificates/membership advices/statement of accounts to its investors. The benefits of a technological change is unimaginable.
UTI has already implemented an automated processing system for servicing US-64 investors at all branch offices. This has helped access information online and has led to better utilisation of office space doing away with voluminous paper based unitholder registers. It has been able to process income distribution in-house at its 43 branches. UTI branches and registrars have been networked through V-Sat.
UTI has also been using its electronic clearing system aggressively for income distribution. Over 1.8 million investors have opted for the ECS facility. UTI has also sought Sebi approval to become a limited purpose depository participant mainly to cater to its unit holders. This service will be offered to investors from July, 2000. So far, 28,800 unitholders have dematerialised their units worth Rs 569 crore (face value). UTI's depository service facility is available for US-64, Mastershare, Masterplus, Mastergain, Mastergrowth and Grandmaster.
The project also proposes to link up wide-network of agents to enable them access to relevant information.
TRUST IN TECHNOLOGY
IT strategy to provide anytime, anywhere service to investors
Information on unit-holding through Internet planned
IVRS in metros to provide income distribution details over phone
ERP being installed for branch accounting
Branch offices and registrars networked through V-sat connectivity
US-64 income distribution processed inhouse through automated-processing system
M-Fund software to help compute NAVs on daily basis
Over 1.8 million investors have opted for electronic clearing system for income distribution
Over 28,800 unitholders have opted for demat of units worth Rs 569 crore
UTI to become limited purpose DP to cater to its investors' needsCopyright © 1999 Indian Express Newspapers (Bombay) Ltd.