Automating Mandate Collection for Mutual Fund Investments –

Summary

Loan Aggregator Platform improved its mutual fund investment process by replacing the physical NACH mandate system with an automated e-Mandate solution. This change reduced processing time, improved registration rates, and enhanced customer satisfaction, leading to operational efficiency and cost savings. Loan Aggregator Platform

Background

With the surge in mutual fund investments in India, Loan Aggregator Platform aimed to streamline its online money collection and disbursement process, which was hindered by manual mandate processing.

Business Challenges

Slow Processing: Physical NACH mandates took 30 days for approval.
Low Efficiency: Only 50% of mandates were successfully registered.
Customer Attrition: Slow processing times led customers to switch to competitors.

Solution Implementation

Loan Aggregator Platform adopted an e-Mandate solution with Net Banking authentication, enabling:

Faster approval times.
Increased bank support (from 48 to 70 banks).
Lower registration costs (by 70%).
Unique transaction references (UTRs) for easy reconciliation.
A streamlined payout process to Asset Management Companies (AMCs).

Business Impact

Higher Registration Rates: Monthly registration growth increased to 22.24%.
Improved Customer Satisfaction: Higher efficiency led to a 5% increase in AUM per transaction.
Reduced Payment Failures: API-driven bank account validation reduced errors.
Rapid Integration: Implementation was completed in just 9 days.

Conclusion

By transitioning to an automated e-Mandate system, Loan Aggregator Platform enhanced operational efficiency, reduced costs, and improved customer experience. The success of this transformation highlights the importance of fintech-driven solutions in optimizing financial services.

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