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We participated in the Analyst Day Meet held by CAMS Limited (CAMS) on Friday and gleaned the following key takeaways (1) In the MF RTA business, CAMS is displaying a clear ability to win new clients at the expense of KFintech, the other player in the duopoly (2) Digital onboarding has become a key thrust area for the alternatives business (3) CAMS’ payments business is a full-stack BFSI-focused payments platform (4) CAMS' KYC services offer an industry-first AI-embedded 10- minute KYC solution to onboard customers instantly (5) The fact the private sector life insurers are increasingly dematerializing new policies augurs well for the Insurance business (6) CAMS has, significantly, bolstered its tech capabilities with the purchase of Think360 (7) CAMSfinserv is the leading RBI-licenced Account Aggregator in the market.

In the MF RTA business, CAMS is displaying a clear ability to win new clients at the expense of KFintech, the other player in the duopoly The last 5 launches of CAMS are 360 One, Shriram, PPFAS, Mahindra and Whiteoak, which have AUM amounting to about Rs 650bn. In contrast, new customers for competition (KFintech) have been ITI, Trust, NJ, Samco and Bajaj, which account for an AUM of about Rs 140bn. Furthermore, CAMS has won 4 out of the last 6 new-to-market MF RTA mandates. These new customers are Zerodha, Angel One, Helios and Torus Oro.

Digital onboarding has become a key thrust area for the alternatives business There have been 100 plus signups on CAMS Wealthserv and Fintuple digital onboarding. Currently, 30% of the AIF and PMS traffic is being handled by Wealthserv. Tailwinds for the alternatives business include enhanced regulatory scrutiny, need to scale, new compliance requirements and digitization

CAMS’ payments business is a full-stack BFSI-focused payments platform CAMSPay services mutual funds, insurance, NBFCs and Ed-Tech. Clients prefer CAMSPay for its security, compliance, native interfaces and customizable UI/ UX. 8 out the top 10 AMCs and the largest private sector life insurer are among clients.

CAMS' KYC services offer an industry-first AI-embedded 10-minute KYC solution to onboard customers instantly CAMS offers KYC services for banks, NBFCs, insurers, fintech, brokerages, wallets and payment banks. CAMS has 18mn KYC records and processes ~200,000 fresh KYC every month.

The fact the private sector life insurers are increasingly dematerializing new policies augurs well for the Insurance business The share of demat policies in new issuance for private sector life insurers has risen from 27% in FY20 to 55% in FY23. This is a Rs 1-1.5bn revenue opportunity for CAMS.

CAMS has, significantly, bolstered its tech capabilities with the purchase of Think360 Think360 is a full-stack data science and AI-focused firm, which is a digital partner to marquee Indian BFSI companies. The company is a pioneer in alternative data and AI credit scoring solutions. In a sense, Think360 is a precursor to Account Aggregator (in terms of credit appraisal) and has the capability to scan one’s SMS and emails. The company has been transforming digital customer onboarding and KYC with AI journeys.

CAMSfinserv is the leading RBI-licenced Account Aggregator in the market CAMS' offering is integrated with TSP solutions from Think360 and Sterling Software. From a security standpoint, CAMSfinserv has the highest BitSight score of 800 among all AAs. CAMSfinserv is the most downloaded AA app with 15,000 downloads and 100 plus enterprises have signed up with CAMSfinserv. The total industry pulls amount to 3.5-3.6mn, of which CAMS handles 0.5-0.6mn, translating to a market share of 12%.

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