Balancing Technology and Human Touch in Mutual Funds: Insights from Nilesh Shah

Balancing the needs of tech-savvy investors and those who prefer physical interaction is crucial in the mutual fund sector, according to Kotak Mahindra Asset Management Company Managing Director Nilesh Shah. Speaking on Thursday, he stressed the importance of avoiding a digital environment that could lead to exclusion or trapping.

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Shah highlighted the necessity of integrating technology with a human touch in all models within India. "I have to create a balance where I am able to cater to both. Not everyone has a smartphone. Everyone is not legitimately smart," he said during a panel discussion at the Global Fintech Fest 2024.

Technology and Human Touch

Shah emphasised that technology should be inclusive, serving both urban and rural populations. "There exists both-- India as well as Bharat. My technology should be such that it can work on both sides," he noted. He warned against creating a digital age that might result in digital exclusion or trapping.

"Between this digital exclusion and digital trapping, I think we can survive," Shah stated, underscoring the need for the industry to prevent such pitfalls. He also pointed out that while technology can help eliminate noise and provide wisdom, it must be complemented by human interaction.

Preventing Digital Trapping

Shah advised the industry to ensure that technology does not lead to fraud or digital trapping. "We need to reach out to people, whatever one says, the opposite is also true. If there is a need for technology, there is also a need for human touch," he said.

He acknowledged that some individuals still prefer manual processes, such as filling out application forms by hand. Shah stressed the importance of covering every segment of society through both human touch and technology to make every Indian financially savvy.

"Also, we will have to cover every segment of society through human touch, and through technology to ensure that every Indian becomes financially savvy," Shah added.

In conclusion, Shah's remarks highlight the need for a balanced approach in the mutual fund industry, combining technological advancements with personal interactions to cater to diverse investor preferences and prevent digital exclusion.