Investment & Trading: India’s New Digital Obsession

view original post

Technology is reshaping finance. Services like banking, insurance, and investment are undergoing a profound transformation – a process accelerated by the recent pandemic.

Rapid internet penetration, a preference for digital convenience, and a booming fintech space have contributed to this transformation making financial services 100% online. 

How Technology Has Transformed Financial Services

Self-service capabilities through banking apps have rendered visiting a bank branch unnecessary with technology. Similar is the case for investment services today. The investors had to buy or sell a stock by calling their stockbrokers before the advent of online trading. High commission costs and information asymmetry made the earlier process inefficient and costly. Investors today can trade in the stock market through a 100% online process. Apart from the obvious benefits of convenience and seamlessness, this 100% digital process has reduced costs, increased transparency and price discovery, and has produced a new generation of informed investors. 

Better internet connectivity and new-age mobile apps helped attract new investors. However, several newcomers lack the financial know-how to make decisions confidently. Thankfully, social media is filling this gap. While experts advise against following the herd, when it comes to investment decisions, the presence of ‘Finfluencers’ (Social media influencers who explain financial subjects) has ensured that new users get aware of the stock market. The rise of ‘finfluencers’ has hooked the new generation of investors who prefer receiving advice and quality market analysis in easy-to-consume formats. Investor awareness about investments and market developments is increasing because of social media.

The rise of new-age investment services

Financial firms are incorporating innovative solutions to offer better services to their customers. Firms have realized that an investor today is looking for more than operational and transactional services. They need additional value, like digital personalized investment advisory and portfolio management services.

The digital advisory includes the expertise of an investment advisory with the accuracy and efficiency of algo trading and robo-advisory. In the case of portfolio management, technology has enabled investors to track their portfolios and receive expert advice from the comfort of their homes. These digital advisory firms use Artificial Intelligence and machine learning to build portfolios. 

A conversation about the technological disruption in financial services is incomplete without algo trading. Robust algorithms make intelligent trading decisions by analyzing every quote and trade in the stock market. They constantly monitor the market movements and execute trades when conditions meet the required parameters like price and volume. As per a report by the Department of economic affairs (DEA), close to 50% of total orders on the client side are algo trades on the BSE and NSE platforms. Algorithm trading has become a common feature of the Indian trading landscape with an increased interest by investors and financial firms. 

Theme-based investments

Bajaj Financial Securities Limited is a rising name in the Indian stockbroking segment and offers lower brokerage rates in the market in Demat account and delivery trading. It has tied up with a SEBI registered digital advisory service provider – PickRight to offer thematic investment ideas for long-term portfolio creation on its trading platform, the BFSLTRADE app. With this partnership, BFSL customers will benefit from research, advisory and intelligent monitoring services to build long-term portfolios. 

PickRight uses deep tech, Artificial Intelligence, and machine learning to curate stock baskets and rebalancing suggestions.

BFSLTRADE app offers extensive features that aid investors in stock trading. Easy buy and sell options, easy watchlist creation, portfolio building, and market reports are existing features that help investors in stock trading. BFSL clients can choose from the affordable Freedom Pack, Professional Pack, and Bajaj Privilege Club (BPC) based on their knowledge and experience in the stock market. BPC subscribers can enjoy as low as Rs.5/order for Delivery, Intraday, and F&O trades. It also offers the lowest MTF interest rates in the industry -9.25% only. 

The digital revolution in financial services has led many young investors to the stock market. While social media finfluencers share stock market knowledge, many new investors need personalized guidance for stock selection and long-term portfolio creation. BFSL’s partnership with PickRight will provide the new investors with expert assistance to help them seamlessly invest and manage their wealth. 

PickRight Disclaimer:

“BFSL is only the distributor of this product; These are not exchange-traded products and all disputes concerning the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. BFSL is not a registered Investment Advisory or Research entity. User discretion is required before investing.”

Investments Disclaimer: 

“Investments in securities markets are subject to market risks, read all the related documents carefully before investing.”