Motilal Oswal: Reducing account opening TAT

Motilal Oswal Securities successfully cut down the time lag from the date of signing customers to activating their accounts from 10 days to four, to emerge a winner in the services category at the 22nd Qimpro Convetion.

Motilal Oswal Securities Ltd (MOSL) was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it is a well diversified financials services firm offering a range of financial products and services such as wealth management, broking and distribution, commodity broking and others services.

The turnaround time (TAT) for account opening at the branch operations level during June-Jully 09, (from the day form is signed by client to account activation for the client was 10 days whereas the management expectation was 4 days.

The problem was thoroughly analysed using various tools and methodologies and improvement action taken in following areas

Ready Reckoner for major objection for field executives

Capturing of sign date in MIS and regular MIS sent to senior management

Single KYC data entry to replicate data in softwares

Automated SMS to client intimating objection in form

Benefits realised

Tangible

Reduced TAT of new client account opening from banach oepartions, from 10 days to 4 days which causes financial savings of Rs66 lacs annually
The savings are mainly coming from

Client loss on objected forms: Customer applied for opening an account but never came back after an objection was raised

Additional revenue through TAT reduction (including the interest cost)

Intangible

Higher CSAT due to faster process and satisfied clients spreading the good word about MOSL to other prospective clients

Reduction in logistics and operational costs

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