Customer Onboarding, KYC Verification and Follow-Up in Mutual Fund and Insurance Distribution: A Process-Based, Theory-Grounded Study of a Small Pune Distributor (International Journal of Creative and Open Research in Engineering and Management)

Summary

• The study traces the client journey at AL Investment and Insurance, an AMFI-registered mutual fund distributor and IRDAI-registered insurance intermediary in Pune, during an eight-week on-the-job training period.p.1
• In an illustrative reconstruction, weekly onboarding rose from 5 to 13 accounts (a 160% increase; 69 in total over eight weeks).p.6
• In the same illustrative series, average KYC turnaround fell from 4.5 to 2.5 days, a reduction of 44.4%.p.6
• Mutual fund clients raised more queries (93, or 56%) than insurance clients (72, or 44%).p.7
• In an informal check-in with 40 clients, 35% were very satisfied and 40% satisfied.p.7

Key insights

1. The observed client journey is a ten-stage sequence from requirement identification to daily consolidated reporting.p.4
2. The firm declined documentation shortcuts even where they would have closed a case faster.p.5
3. About a third of insurance cases sat in the pending category, suggesting most pending cases are recoverable through better-scheduled rather than more frequent calls.p.5
4. KYC turnaround fell from 4.5 to 2.5 days as the pre-submission checklist came into consistent use, though an illustrative series cannot establish causation.p.6
5. Delay can be reduced by catching two predictable errors, address-proof mismatch and PAN-Aadhaar linkage, which account for 60% of rejection events.p.6
6. The renewal conversion rate in the illustrative data is 41.3% of 150 logged cases.p.6
7. The quantitative illustrations are reconstructions rather than empirical observations, and the study is a single-firm, single-location qualitative design.p.7