Digitalization of Securities Market

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DIGITALIZATION OF SECURITIES MARKET


CONTENT

 Implication
 Example
 Management required for digital adoption
 Asset Digitalization
INTRODUCTION

The technological revolution has had a profound and


lasting influence on the world, and the Indian securities
market has also experienced similar developments.

In 2020, India had over 749 million internet users across


the country

Investor are participating in the purchase and sale of


shares over the internet.
WHAT GOING DIGITAL REALLY MEAN IN BUSINESS CONTEXT…

What going Digital really mean in Should organizations utilize Digital as a


business context… Backbone or only as a Support…
Digital methods include company sites, external The financial services business is customer-facing,
portals, social-media, smartphone applications, web- competitive, distribution- sensitive and turnaround-
chat, IVR phone facility, presence on web- time sensitive and as the target audience is becoming
aggregators, SMS, email, etc. digital, it makes sense to use digital as the Backbone
The purpose of digital methods is to inform, engage rather than a Support.
and execute clients/prospects with their business. It
started as an ‘addon’, but has moved to a ‘must-
have'
In terms of devices, smartphones is the largest and
fastest growing medium
IMPLICATIONS OF DIGITALIZATION

Technologies such as cloud, distributed computing and mobile will increase


operating leverage

Digitalization of existing business processes will enable automated decision


making, reduce risk in fraud management and regulatory processes, and
streamline operating models
Market-making revenue will be migrated to alternative firms and electronic
options

Opportunities will arise in mining, packaging, and redistributing actionable


information, from the large amount of data collected through digital channels

Regulatory supervision would be less complicated as asset holdings would be


This Photo by Unknown Author is licensed under CC BY-SA-NC transparent across the system, leading to reduced chances of fraud
IMPACT/BENIFITS OF DIGITALIZATION IN SECURITY MARKET

Engaging with Existing Clients

• Digital methods give clients access to buy the product(Financial Securities). Product information is available on
multiple platforms. Hence, product information may not always be the main requirement of clients when they
visit the company’s digital platforms, but the access to the product for buying would be. For example: clients
may compare information on mutual funds on third-party web-aggregator platforms rather than on the fund’s
platform but may visit the fund’s platform when they want to buy directly.

Prospect Engagement

• This is a high-impact area where digital methods help in brand-building, information-sharing and deepen the
awareness of the products, with the aim of converting them to buy. Which is major reason that the retail
participation in Indian Stock Market is rising. As per SBI report 44.7 lakh retails investor accounts have been
added during the two months of this fiscal. 
IMPACT/BENIFITS OF DIGITALIZATION IN SECURITY MARKET

Product Promotion & Comparison

• A high-impact area wherein company owned, and external-owned platforms give access to product
information. This includes product-comparisons, where clients can directly compare product
features. For example, Moneycontrol and Value Research are platforms which allow comparison of
mutual funds

Reporting and Notifications:

• This is a must-have for financial firms to ensure ease-of-access and fast response. Periodic
portfolio reports, account statements, transaction confirmations, payment confirmations, etc. are all
conveyed to clients instantly using digital mediums like emails. For example, Zerodha, Largest
stockbroker in India, sends the monthly reports of all the transactions made by investor
CONCLUSION

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