One for all: finnate pioneers omni-CRA integrated solution for digital NPS journey

One for all: Finnate pioneers omni-CRA integrated solution for digital NPS journey

The National Pension System (NPS) is a Government of India initiative that aims to create a pensioned society in the subcontinent. Earlier developed for government employees, this defined-contribution-based scheme was opened to all Indian citizens in 2009.

Managed by the Pension Fund Regulatory and Development Authority (PFRDA), the NPS architecture broadly comprises an NPS Trust (the repository for contributions), three Central Recordkeeping Agencies or CRAs (who administrate data and records) and over 390 service providers called Points of Presence or POPs who are usually major banks, brokers, and stock-holding corporations (who deal with collection, distribution, and servicing). The system also involves pension fund managers and trustee banks to handle investments and banking operations, respectively.

Until recently, each CRA functioned as a separate entity, dictating the NPS experience for consumers. Consumers signed up for the NPS scheme only through a CRA and could shift their agencies only through a time-consuming and offline process.

The many challenges in this journey for POPs

The PFRDA’s decision to let POPs deliver services to end-users was hailed as a positive move but it did not increase transparency, had no back-end integration, and left consumers still facing complicated journeys for CRA-changes, investment plans, and more.

For POPs, there were multiple hurdles including:

Disparity between CRA data formats and API protocols that hindered interoperability and session data integrity
Lack of insights into consumer actions like dropoffs, pain points, etc
Intensive manual efforts related to compilation of data from the different CRA portals
Time-consuming manual processing of payments and refunds
Delayed response times due to lack of integration that impacted ease of transactions for users

Finnate offers POPs an integrated solution.

Cloud-native fintech platform Finnate has pioneered a redirectional NPS solution that changes the landscape for POPs and end-consumers. By seamlessly integrating with all three CRAs, Finnate offers POPs streamlined onboarding, complete visibility of user actions, fortified back-office capabilities, and insights to improve CX.

1 in 4 users never complete NPS registration.
Finnate helps retain investors.

Having deployed the solution for a leading insurance POP in India, Finnate demonstrates the following proven benefits:

Integration of all three CRAs through a redirectional model solution
Standardisation of disparate CRA data fields, ensuring interoperability, and digitisation of transactions like change of CRAs etc
Easy consumer onboarding through 10+ external API identity integrations (i.e. Aadhar, CKYC) that also avoid duplication and fraud
Minimised dropout rates of with form progress saving and reminder alerts for registration completion
Digitised fee collection during registration for revenue growth from one of India’s biggest investment programs
Actionable consumer insights through incorporation of customisable MIS data analysis
Data security and safety as per the mandated KYC/AML/CFT government regulations as well as vulnerability testing
Increased freedom of choice in NPS journey, resulting in consumer satisfaction
Access to a centralised, ID-verified database of potential investors across the country
Ability to personalise services, increasing the odds of consumer retention and acquisition

Finnate accelerates the NPS journey, with investor PRANs in <5 minutes.

For consumers, the benefits are:

Ability to begin or continue their NPS journey with a POP of their choice
Increased transparency and thus enhanced trust
Ease of operation in NPS transactions including user profile updation, etc
Smooth digitised onboarding that avoids duplication of ids
Frictionless registration journey with form progress saving and reminder alerts
One-time, upfront online payment of registration fee
Lower risk of data loss or theft

A golden opportunity now made accessible.

The NPS scheme has subscribers numbering in the millions, with the total number on March 31, 2022, being 5.2 crore, up 23% from the previous year. The total NPS assets under management stood at INR 7,36,000 crore as of March 31, 2022, up from INR 5,78,000 crore from the previous year. With steady year on year growth, and consumers eager to invest large sums for their golden years, this is a fantastic opportunity for those in the fintech space. With Finnate’s solution, potential banks, investment firms, stockholding firms, brokers, and more can leverage a huge database of validated consumers for mutual gains and profits. If you would like a demo of Finnate’s solution, please write to us at contact@finnate.ai or visit https://finnate.ai/company-contact/ Finnate is a constantly evolving, modular, cloud-native fintech platform created to help financial services providers accelerate innovation as well as deliver friction-free customer and product lifecycle experiences. Offering solutions related to alternative investments and business lending, Finnate is an end-to-end fintech solution.