Technology has become one of the biggest focus areas for stock brokers even as a large chunk of the broking community does not seem to be adequately prepared for the changing technological landscape, revealed a survey by the Association of National Exchanges Members of India (ANMI), the umbrella body of stock brokers.
While the survey showed that nearly 80% of the brokers are actively investing in technology and ‘algos’ (or algorithms) are becoming increasingly popular, a majority do not have a dedicated technology budget.
“More than 72% respondents said their technology spend was ‘as and when required’. This indicates the lack of preparedness among broking industry players for dealing with the challenges of an ever-changing technology landscape in the industry and their need to keep pace with technology developments around the world,” a release stated.
The survey, among the 900-member broker community, also showed nearly 80% of brokers were actively investing in technology and ‘algos’ are becoming increasingly popular.
“The other technology software that most brokers — around 58% — will invest in, in 2020 is the algo, which indicates precision and speed in execution of trades will continue to be the focus areas for brokers even as broking services move towards automation and do-it-yourself models,” it said.
About 86% of respondents said they believed technology would be a key criteria for their business in 2020. A majority also said they were ready to increase technology budgets, with some even willing to raise the allocation by 50%.