Since its establishment, approximately 30,000 accounts in various mutual funds have been opened by investors, according to Asset Management Companies (AMCs).
Until 2020, more than 8,000 accounts were opened online, according to government data. As of March 2021, 21,000 accounts had been opened online in the first five months of 2021.
SECP created the digital onboarding method to attract investors in asset management businesses’ instruments through the simplest permitted process and rules.
The digital onboarding method not only provides investors with a smooth account opening process for mutual fund investments, but it also eliminates the need for physical presence and the submission of physical papers.
When registering online accounts, asset management firms undergo an online customer verification process to assure investor protection and compliance with all applicable legal and regulatory frameworks.
The system employs digital verification to authenticate the investor and original identification documents via virtual meeting applications (WhatsApp, Skype, etc.) that allow for real-time online face-to-face interaction.
A streamlined account opening process also eliminates the need for investors to physically sign several documents and statements. The apex regulator has devised a digital onboarding method with AMCs in order to attract investors to mutual funds that focus on investment and savings.
