- May 5, 2017
- Posted by: Admin
- Category: Banks, Mutual Fund, SIP Audit
With SIP, volumes are high, the probability of data entries being erroneous is considerable, and customer dissatisfaction tends to be on the climb. The common errors that one finds are:
- incorrect amounts
- wrong SIP start date
- wrong SIP end date
- improper periodicity
- incorrect schemes
- inaccurate bank details
These errors have a significant monetary impact. Mistakes that stem from unchecked data entry errors in SIPs can lead to the onus of further faulty and repetitive deviations.
The two primary areas where errors occur are during the time of data entry and then during transaction trigger. However, in keeping these errors constrained, there are 4 distinct benefits to gain from.
- You address errors at the root: By identifying errors at the time of registration of the SIP, you avoid multiple errors that could result subsequently. For instance, if the SIP amount is incorrect, then all the following transactions will inevitably be incorrect. By identifying that error right at the time of the registration itself (i.e. even before the first SIP transaction is triggered), the RTA can avoid all later errors for that SIP account.
- Reduced investor dissatisfaction: By reducing errors relating to the amount, scheme, from date, to date and so on, the investor’s dissatisfaction can be brought down. The number of queries from investors reduce, too. This also leads to the RTA needing to have fewer people to handle these investor requests.
- Increased AMC satisfaction levels: By implementing the Smart999 program for SIP, tracking is done (based on feedback from investors and AMCs) to ensure 99.9% quality in all SIP transactions. This means that the AMC does not have to lose sleep over quality at least as far as the SIPs are concerned.
- All records are matched without discrepancies: When a comprehensive monthly reconciliation is performed to ensure triggered transactions are reconciled with ECS debits, there are no miss-outs. This further reduces errors at the transaction level.
When the first transaction is error free, you prevent future transactions from being inaccurate, too. Do the math!