Upping the ante. Stock broking firms to ramp up IT spend

BL Mumbai Bureau Updated - November 22, 2024 at 09:31 PM.

Brokers increasing IT spend to adopt AI, algorithmic trading and blockchain for efficiency and customer experience

Stock broking companies are planning to increase their IT spend and embrace latest technology given the growing investors interest in stock market trading.

A survey by the The Association of National Exchanges Members of India (ANMI) revealed 84 per cent of stock brokers plan to increase their IT budgets in this fiscal, with 42 per cent targeting a 20 per cent rise.

The focus remains on deploying cutting-edge technologies such as Artificial Intelligence, algorithmic trading and blockchain to enhance efficiency, scalability, and customer experience.

Operational modernisation

The StockTech Survey found 34 per cent of brokers, who participated in the survey, prioritised AI and ML to drive predictive analytics and personalised trading strategies; while 33 per cent focused on algorithmic trading, emphasising precision and automation.

Over 60 per cent of stockbrokers have digitised over 50 per cent of their business processes, reflecting a strong push toward operational modernisation.

About 85 per cent of respondents cited safety as a critical priority, underscoring the need for robust risk management and cybersecurity strategies.

VS Sundaresan, Executive Director, SEBI, said by embracing emerging technologies alongside robust risk management frameworks, the industry can achieve sustainable growth while safeguarding the interests of market participants.

Harin Mehta, Chairman, ANMI, said with growing investments in AI, automation, and security, the industry is poised to deliver enhanced resilience and inclusivity.

Published on November 22, 2024 13:30

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