HDFC securities, a leading stock broking company, and a wholly owned subsidiary of HDFC Bank, announced a strategic partnership with KFin Technologies Limited (KFintech), one of the largest Central Recordkeeping Agencies (CRAs) in the country, to enhance the accessibility and adoption of National Pension System (NPS) amongst its subscribers. HDFC Securities has an extensive network of over 3.5 lakh subscribers and over 2700 corporate clients.
CRAs are crucial to the NPS ecosystem, providing centralized management of subscriber records, ensuring transparency, and streamlining account management. It enables subscribers to track contributions, monitor investments, and make changes easily. KFintech's CRA platform offers several innovative features designed to enhance user experience and security, with subscribers benefiting from flexible transaction statement downloads across any date range, and real-time SMS notifications for all contribution modes. The platform combines enhanced security features like dual-factor authentication through password and SMS OTP with dedicated portals for subscribers, complemented by WhatsApp services and a missed call facility for easier access.
Commenting on the partnership, Mr. Dhiraj Relli, MD & CEO, HDFC securities, said, “We're excited to partner with KFintech to enhance our service offerings. This collaboration will enable us to provide our subscribers and corporate clients with a superior technological platform for NPS management. The timing couldn't have been better, as we're seeing increased interest in Corporate NPS following the enhanced tax benefits, and typically, these are the initial months of the year.”
“KFintech has demonstrated its technological leadership in the industry by contributing to 47% of new registrations growth, the highest among CRAs. This partnership will leverage the technological advantage to streamline the onboarding process and enhance the user experience for our new subscribers and corporate clients. Together with KFintech, we're well-positioned to drive greater pension penetration in the corporate sector.” added, Mr. Relli.
Sreekanth Nadella, MD & CEO at KFin Technologies, said, “The rapid digitization of financial services has created a unique opportunity to reshape the pension landscape in India. As part of our commitment to democratizing pension coverage across the country, this partnership with HDFC securities marks a transformative step forward. By leveraging our comprehensive digital solutions, combined with HDFC securities' robust corporate network, we aim to create a powerful synergy that will significantly enhance access to NPS across the country.”
The partnership comes at an opportune time as the Government of India has recently enhanced tax benefits under corporate NPS from 10% to 14% of basic income, driving increased interest in the corporate NPS market. Currently, with only 18,700 corporations registered under Corporate NPS and 21.6 lakh subscribers, there is substantial growth potential in this segment.