Nilesh Shah: There needs to be a balance between technology and people in the mutual fund space

A balance needs to be struck that caters to both tech-savvy investors and those who prefer physical interaction in the mutual fund space, Kotak Mahindra Asset Management Company Managing Director Nilesh Shah said on Thursday. He also advised the industry to avoid creating a digital environment that could lead to digital exclusion or captivity.

He further said that in India, in all models, there is a need to use technology but also consider the human touch.

“I have to strike a balance where I can serve both. Not everyone has a smartphone. Not everyone is really smart. There is both – India and Bharat. My technology should be such that it can work on both sides,” said Shah, who was participating in a panel discussion at the Global Fintech Fest 2024 here.

He recommended preventing the emergence of a digital era where digital exclusion or digital entrapment occurs. He stressed that the industry must work to prevent digital entrapment and fraud.

“I think we can survive despite this digital exclusion and digital imprisonment,” he said.

Shah explained that one needs to use technology to cut through noise and impart wisdom, but said that knowledge alone is necessarily wisdom. “We need to reach out to people, no matter what anyone says, the opposite is also true. If technology is needed, human intervention is also needed,” he said, adding that there are still people who prefer to fill application forms manually.

“We also need to reach out to every section of society through human interaction and technology to ensure that every Indian is financially literate,” he said.