Why fintech apps ask you to open a demat account
SummaryDirect mutual fund apps require users to open a demat account, leading to concerns of cross-selling other financial products to generate revenue.
Babu Lal is the go-to finance guy for his family, friends and acquaintances. So when his cousins decided to start investing in December 2022, they sought Lal’s help. Lal, a 32-year-old fintech consultant based in Churu, Rajasthan, recommended that they start with direct mutual fund (MF) plans, without going through distributors and save on commissions. The next step was to help them open a mutual fund investing account. But that proved to be cumbersome.