Strategy of Unfolding a Mobile Trading Application

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The pattern of taste of each individual is contrasting and disparate. This is no one-size-fits-all recipe that will satisfy and earn a badge of a universal harmonious palate. The common strategy adopted is the preponderance of affection and antagonism to decide an upshot, a common minimum programme in Indian context. How far will this be successful?  Unfortunately the affection quotient is spontaneous & dynamic; influenced by epigenome, emotional framework consciousness, observations , knowledge, environment, cognitive morale, physical state and plenty of other coerce forces.

In short, the underlying statement being, there is no single universal preference!!

In my short exploration of a preferred mobile trading application within my selected circles, I realised that product owners are equally confused about the end user’s need. They were completely inconclusive in positioning the product flavour; ended up either in making a plethora of distinct products or a heavy weight massive application with an ocean of features. In both the above choices, they force the user to use the application in the way it was structured without providing a flexibility of any choice of usage or what they seek. I couldn’t sense an affinity or belonging in this approach and design.

I will classify the general sentiment, the genuine demand and a traders emotion into three simple entities.

  1. Opportunity
  2. Curiosity
  3. Realisation

Any features in a trading app can be classified into these attributes. The density of these sentiments are proportionate to the nature of investor you are , in general , aggressive/ moderate /conservative ; or the tenor of segment viz, a trader / investor / hybrid.

In this post , I will limit to a few analysis of Opportunity with a few relevant feeds gathered.

Opportunity bucket and its criteria will vary with each person. However in most of the applications that I have navigated was trying to plug all use cases in a single screen/module. A cumbersome tool leads to an opportunity loss and a customer dispossession. How can we make life easy for a user by using the app the way he/she wants ? Only solution is to create a platform to analyse the data effectively, navigate and fulfil a dimension as he/she is in quest for.

(1) My Priority of Data

The analysis of quote screens in multiple apps proves a point that there is quite an uncertainty in the prioritisation of data points. Majority of the applications have a tab structure with the following data classification.

  1. Quote Snapshot: OHLC info, Chart and News
  2. Quote Detail: Detailed Info about Symbol, 52 Week High Low, Average Traded Price, Volume
  3. Market Depth: Top 5 Bid and Ask
  4. Chain: Options/Future Chain

A simple thought , how can a quote screen vary for a trader and an investor?

For an investor why are you displaying a Market Depth or ITM Option Chain in a quote snapshot ?

Why is that , the data points I want to analyse and compare are spread across in four different tabs ?

Possible answers are,

  • The information architecture of a trader , investor or a hybrid persona is not classified and reinforced.
  • I don’t know the type of trader you are.
  • The excuse of the screen real estate restrictions.
  • API / Data limitations.
  • Judgemental error in alignment of the priority of data with end user.

(2) My Usage 

Many of the responses I received from my introspection belongs to the clog in navigation and accessibility of a feature. Complaints were numerous that more than four clicks are required to access a particular entity. In one of the applications, a square off from the Net Positions data was a fixed five clicks away , post login.

A person accustomed to shortcut keys in a desktop are still not comfortable with new generation smart screens. More than 56% of the users are finding the fixed bottom menu navigation not in alignment with their frequently used screens.

(3) Relevant Push Notifications

Push Notifications are “rich” in SPAM and “poor” in content inclination even with contextual targeting. The significance of the information requirement for the user has to be in alignment with the instant intelligent notifications. One of the most sought features in push notification is a “mark as SPAM” option. Unless this changes , the harder the push , will retard its use.

(4) Readable Signal from Charts

Deciphering a MACD Crossover from a chart or a PSAR Reversal is not my ploy. A readable trading signal is what is needed , especially for the newbies. Majority of them queried , “Can we have a descriptive note of the advanced chart with indicators , with possible trends ?”. Maybe Siri or Alexa is required to decipher the chart and trend.

The requirement of advanced charts varies with a professional trader and a market entrant.

(5) It’s my Data Network

Can the User throttle the streaming or categorise it based on his network strength ? I don’t want to have real time streaming on a poor network , instead a 30 sec update is good for me. Can I set my priority of fast feed or a polling based on my situation/need/preference ?

(6) Opportunity Validation ?

I sense an opportunity and I am ready to act, if my inference is validated . Throwing a query to a community or a forum and waiting for information digest is time consuming. Can the chatbot be an Intelligent Advisor rather than a Support Ticketer ?

And the list grows with conflicting needs, cross pollinated data , simplified tools and more demanding new generation users.

The bottom line is how much customisations/ personalisations can we bring into the app , to make the customers feel a sense of belonging to the tool they use. An Open API won’t solve this problem since the customer is not a tech-savvy person who will invest to build an app. The customisations of today are limited to a theme and multi-language which is just a basic premise. On top of this personalisation with high level demographic, contextual and behaviour segmentation is not enough. The minimal demand of the customer is to have flexibility for limited customisation on what to see, make short and quick navigations and tools with more intelligence and interpretable results. Only effort which is required is to have the right ingredients and the place holders for the customers to make their own DIY (Do It Yourself) screens.

Personalisation is a key part of customer experience, with intelligent use of data allowing marketers to create relevant and unique experiences that hold attention for longer (and generate loyalty in the long-run).That being said, this is perhaps more indicative of organisations’ maturity levels when it comes to the skills and structures needed to implement effective personalisation. (credits: EConsultancy)

For the product managers who are constantly in rummage for TD Ameritrade’s successful products has to follow and digest their tagline; “TD Ameritrade: Power to trade in your own terms”. This alone speaks about their user base growth , loyalty and stickiness factor . Next step to the ambitious SuperApp should start from the fundamental practice of flexible customisations , which should be the next target for any new application initiative.

About the author: Prashanth is Chief Operating Officer at Market Simplified and his forte includes delivering innovative business strategies and client-focused solutions to improve margins for SBU- BFSI segment. He is obsessed with movies and cooking and is also a cricket buff.

Interactive session with ‘Walk for Plastic’ founder Mr.Gowtham

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Walk for Plastic is a classic example of how a person with a good cause can have a snowball effect on the society. What started as a single man mission has now spread its wings across the globe and has become a catalyst of change across all age groups. Initially a 3D artist, now renowned for his works in the field of social service, Mr.Gowtham is the man behind making Walk for Plastic a global phenomenon. He is recently felicitated by Radio city as Chennai’s best citizen for 2020.

As an artist, his works majorly revolved around social issues like saving water, abolishing GST on sanitary napkins, preventing food wastage, women safety, etc. Mr.Gowtham visited the Market Simplified office in Chennai and interacted with the employees. He shared his journey in spreading awareness about various social issues and how Walk for Plastic took birth. Gowtham believes that littering is a psychological issue as well as unethical behavior where people do not consider its environmental impact. As a way to combat this problem he began Walk for Plastic which is practiced in over 10 countries and 13 states across the country. With this movement he has changed over 1500 plus minds. He has inspired shopkeepers to install segregated bins to further recycle their plastic across Chennai and had also used the funds gained from this to provide education and cycles to the rag pickers and sanitary workers’ children.

So far Gowtham has recycled over 5 tons of plastic in just 206 days which has led to saving over 80,000 plus sq. feet area from landfills. He has collected over 100kgs of plastic in Chennai for 25 km continuously in a single day and donated the funds acquired to Chennai Corporation for the Welfare of Sanitary Workers. He has also spread awareness through presentations in 13+ colleges and schools which led to over 1500 volunteers.

The session was informative and interactive. Mr.Gowtham ended the session by letting the team know about his further awareness activities and answered to various doubts and questions raised by Market Simplified employees. Team mCube from Market Simplified took the initiative for arranging the talk and were delighted with the response from the team.

About the author: Deepti hails from the Business Development team at Market Simplified and her business card reads Business Development Executive. She is obsessed with wanderlust and never says no for trips and tours. She claims herself a foodie and cooks well too.

 

Another occasion where MSFers got Rajinified

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In this part of the country he is a phenomenon. A 69 year old has done it again what he has been doing for decades now. A wave of magic swept the country again with his new flick hitting the screens on January 9th 2020. Undisputed Super Star of India yet again delivered his magic and by now you must be aware that we are talking about the movie ‘Darbar’ and the man himself ‘Rajini’ sir.

It has been a tradition in Market Simplified over the years to witness the Rajini mania on screens on the day of release. This year is no different. With the HR’s mail confirming the show details, the excitement has reached new highs. Rajini mania gripped the office and that has been the talk of the day.

It was show time and Rajini mesmerised again in the super cop role. It was vintage Rajini all the way and was a stellar performance from the seasoned actor yet again. For the team Market Simplified, it was another team outing which strengthened the bonding and instilled the spirit of the team. Team was thankful to the management and organizers for making it possible and the wait continues for Rajini sir’s next celluloid magic.

About the author: Deepti hails from the Business Development team at Market Simplified and her business card reads Business Development Executive. She is obsessed with wanderlust and never says no for trips and tours. She claims herself a foodie and cooks well too.

Celebrating 15 years of Glory @Market Simplified

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It is not just a journey of 15 years. It is about the people walking alongside, the tenacity of dreams, and the partnerships that made them real.We’re celebrating 15 years of Market Simplified India Limited.

More than a decade of delivering mobile solutions for financial institutions across the globe, it’s always nice to mark special occasions with employees who are the backbone for any organisation. Market Simplified was reminded of that pleasure on 25th September 2019 as we held the first of several celebrations to mark our 15th Anniversary.  Surrounded by our employees and a host of special guests, we hosted a gala event at Taj Fisherman Cove, Chennai.


Not every company successfully competes – let alone leads in their industry for 15 years, so Market Simplified is pleased to take a few moments to celebrate this success.

The event marked wide and avid participation from MSIL family. In the first half, Senior management enlightened us by their speech. Various team building activities took place to get everyone engaged. Numerous games were organised by the HR Department and received utmost engagement from the team. The first event was a dance competition between 4 teams of 25 members each.  Each team was given a music clip which would stop in 2 minutes, and the contestants would freeze in the same position for 2 minutes, the ones who move are out of the competition. There were 3 winners from each team and were awarded with goodies by the senior employees of MSIL for their performance. Many such entertaining events followed prior and post lunch also.

It was a prominent event which played the role of a stimulant to happiness and acted as a stress buster, letting everyone take their minds off work. It was truly an incredible event which will remain in the memories of the employees. Team mentioned their special thanks to Abhilasha (HR) and Rajesh (Operations Manager) for conducting such a successful event.

About the author: Deepti hails from the Business Development team at Market Simplified and her business card reads Business Development Executive. She is obsessed with wanderlust and never says no for trips and tours. She claims herself a foodie and cooks well too.

Millennial Banking – Is Customer Loyalty Still Possible?

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Millennials are 2.5 times more likely to switch their bank compared to Baby Boomers. Should banks be worried? Can customer loyalty be restored? Where do banks go wrong and lose their valuable millennial customers?

Millennials wish for minimum fuss in their banking activities. They have high expectations on technology to make things simpler for them. The sheer size of this segment in the Indian market makes it difficult for banks to give it a miss. At 440 million and growing, millennials currently make up 46% of the workforce and 70% of the total household income.

A sea of change is needed by the banks in the way they conduct their business to focus more on solutions which are not just simplified but also engaging. It may also require the banks to be present on non-banking platforms such as social media, e-commerce, entertainment, etc. Following elements form the basic blocks of millennial banking:

  • Personalization, 
  • Innovation, 
  • Rewards  
  • Transparency
  • Financial Advisory

A combination of agile and innovative technologies is need of the hour to keep customers engaged and loyal. Artificial intelligence, augmented reality, omni-channel solutions and hyper-personalisation are few aspects which must be considered by the banks willing to serve millennials. 

To be relevant and achieve traction, personalization becomes the go-to element. One such way to engage customers is a contextual push notification based on behaviour & financial activity. The number of ‘wow’ moments delivered to the customer is directly proportional to the loyalty a bank receives.

Big brands are already banking on the above mentioned basic blocks to engage with their customers. By providing seamless digital experience across all customer touch points, banks can assure customer loyalty and win the hearts of customers. However, intimate customer understanding over a period of time plays a crucial role in sustaining the trust of millennials. 

Millennials expect instant gratification and to serve the same we have chatbots backed by artificial intelligence, intelligent voice assistant and more. Increasing debt and diminishing savings trend among millennials also emphasises on the need for exclusive financial advisory.

About Market Simplified: Market Simplified is a thought leader in revolutionising and digitising products for financial institutions by continuously innovating and simplifying finance. We empower our customers with a cutting-edge digital experience that is highly personalised and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning, and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India, and many others across the globe.

About the author: Deepti is currently taking care of Inside Sales at Market Simplified India Ltd. She is an MBA graduate with specialisation in Marketing and has a flair for marketing & branding assignments. She loves cooking, travelling and spends time watching Netflix series.

 

Maintaining the lead with Market Simplified

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Less than two months ago, Karur Vysya Bank (KVB) was awarded Best Retail Bank of The Year by India Banking Summit. How did they beat the competition to get there? What gave them that competitive advantage? Most importantly, can other banks pull off such a feat too?

About KVB
Founded in 1916, KVB is a veteran private sector player in the Indian banking industry. Through its extensive network of 788 branches and 1803 ATMs, KVB has deposits of 56 thousand crores, and a total business of 1 lakh crores. With a capital ratio of 11.79%, KVB is a stable and reliable bank conforming to RBI’s standards. However, KVB had a thorn in its side — legacy systems.

Problems faced by KVB
KVB was started to address the need for SME loans and agricultural loans. It has since diversified its portfolio, but lending is one thing KVB has lots of experience in — all the more puzzling since KVB was being plagued by issues caused by not going digital. The loan application process was a lengthy offline process, and many customers were dropping off as a result. With dwindling customer engagement, KVB also began to witness its market attention declining proportionately. The solution to these issues was to digitalise — in fact, go paperless entirely. But how would a bank — a financial entity — do something so technically different from its core competencies? That is where Market Simplified came in.

Challenges for Market Simplified
Digitalisation is not just a matter of designing a mobile app and/or a web app, and connecting these apps to the banking system. When a client wishes to go paperless, we work closely with them to create a strategy that bakes a digital and paperless approach into the very DNA of the client organisation. The mobile/web app is mostly a supplement to a larger solution, and not a complete solution in and of itself.
In KVB’s case, the mobility solution provided by KVB’s core banking vendor was very barebones and devoid of features. This would be a concern as the mobile app would have to be designed to account for a simpler backend, which could not be altered. The journey from offline to online would need some significant changes inside KVB as well, since personnel would have to be retrained on how to deal with the new, more efficient processes. Smartphone penetration was another challenge – unless KVB had enough customers banking through their smartphones, it would not be cost effective. A closely related challenge was to drive smartphone-using KVB customers to install the app in larger numbers, by getting it good visibility on the concerned app stores. Ultimately, all this would only be applicable if customers continued to use the app — in other terms, customer engagement was a critical factor. To allay these concerns, we first analysed why KVB wanted to go paperless.

Why KVB wanted a digitalised loan module
India is one of the most complex, vast, and competitive markets for pretty much any large company to operate in. Given that the average Indian makes spending decisions by an eclectic mix of price consciousness and brand trust, the banking industry was a battlefield. KVB needed to entrench its market presence firmly, especially in the face of the upstart NBFCs which posed a threat. KVB also needed a solution to reach more customers quickly, as time was running out. A larger, more engaged customer base, KVB concluded, would help them stave off the competition and stay ahead of the curve.

Market Simplified’s solution
Any front-end solution we develop is meant to be simple to use and easy to understand, thanks to our carefully thought-out UI and UX approach. Our mobile app for KVB is based on an assisted model, which means it is not for the use of end customers, but for bank staff. The mobile app can be used for vehicle/retail/home/personal loan applications. The web app is for SME loans for small and medium scale industries. It is a self-service application.
Ultimately, we created the following modules for KVB and helped them go paperless:
Home loan
Loan against property
Personal loan
Vehicle loan
SME loan
Term loan

Results
Our solution reduced turnaround time by >50% for SME loans and ~33% for retail loans. The customer experience improved, owing to paperless processes, and without the need to run around filling forms. Time to market dropped significantly, and overall loan processing time also reduced. The improved strategy and its effective implementation, helped by our solutions, made it possible for KVB to win the Best Retail Bank of The Year award at the India Banking Summit in 2019.

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About The Author: Khushboo Lahoti is currently working as a Business Development Executive in Market Simplified India Ltd. She is a humble renaissance person. Inventive and creative ideas are her thrust.

Behavioural Banking: Where health meets wealth

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Gone are the days when banks moved from paper to computers and considered that the cutting edge of technology. First came the data, then the analytic tools. We are now in the epoch of using that data.

Today, banking is all about providing financial services, but we all know that in this smart world, banking somehow still lags behind on one crucial thing – Intelligence. Banking is an age-old industry sitting on a mountain of customer data. If we analyse the data with AI, we should be able to develop a completely different experience for customers.

Behavioural banking is a system where the good behaviour of the customer is rewarded. A new form of banking which is still in its infancy, it was first implemented by Discovery Bank in South Africa in March 2019. This combined healthy behaviour with banking and financial services.

Why is physical health important to a bank?

At a macro level, a healthier person is more likely to keep the economy moving for a long time than a sickly person. At a micro level, the healthier person is also more likely than a sickly one to be financially prudent. In other words, a bank that incentivises its customers to stay healthy can ensure that they become/stay wealthy.

Is this incentivization beneficial? Will it really work?

Research from Discovery Bank says, when individuals are rewarded for behaviour, they do change. In simple terms, it’s like if you asked your child to do well in exams and promised to buy him a new toy or a bicycle as a reward; chances are he will outperform himself.

Likewise, this bank will reward your good health, your family’s good health, and your healthy behaviour with vitality points. That means good health will help generate wealth. The bank can enable this by offering dynamic interest rates, vitality points for visiting the gym, getting flu shots, or buying healthy groceries and so on. This makes use of the 5-3-80 model of financial health. Five controllable behaviours of spending less than we earn, saving regularly, having insurance in place for serious events, paying off property, and investing for the long term can alleviate three key risks of unaffordable debt, exposure to unexpected expenses, and insufficient income in retirement. These risks result in 80% of events where individuals fail to meet their financial obligations. According to Discovery, the extent to which someone engages in the five behaviours correlates with their risk of struggling with debt they cannot afford, being hit with expenses they did not anticipate or retiring without enough money. Focus on these behaviours, and the financial obligations are certain to be met.

The big question is… Do we actually need this?

Early adopters and trendsetters are millennials. If we want a change or any disruptive technology to work, then the generation we should focus on is this one. Behavioural banking is very important for millennials. The reason for this is that their generation as a whole lacks the ability to save smartly, spend wisely, and meet financial needs promptly. At the same time, their erratic and fast-paced lifestyle is causing deterioration in their health as well. So by fixing their health, banks can go from being seen as money-shilling faceless corporations to being trustworthy advisors and financial partners. That’s where the future lies, and it’s up to banks to move towards it.

 

About Market Simplified: Market Simplified is a thought leader in revolutionising and digitising products for financial institutions by continuously innovating and simplifying finance. We empower our customers with a cutting-edge digital experience that is highly personalised and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning, and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India, and many others across the globe.

About the author: Pranay is currently an intern at Market Simplified India Ltd. He is pursuing MBA from Great Lakes Institute of Management, Chennai. He loves cooking, travelling and watching movies.

Tamil New Year celebration @ Market Simplified

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Puthandu, the Tamil new year, falls on 14th April every year as per the Gregorian Calendar; it marks the first day of the year on the Tamil calendar. However, at Market Simplified, we celebrated it on Friday, 12th April.  It was a great event which saw wide and enthusiastic participation from the MSF family. Three games were organized by the HR Department to get everyone engaged. 

The first was a competition between eight teams of 8 – 9 members each. Each team was given some random items like paper cups, plates, wooden spoons, sticks, balloons, chart papers, and more, which they had to use to make something meaningful. The teams came up with really good themes like Save The Girl Child and Follow Traffic Rules; some even came up with musical instruments. Two teams ended up in a tie for the win; one team had created beautiful toys like plane, car, doll etc. from the artefacts provided, and the theme they followed was ‘Zero Waste’. The other team created some art pieces based on the theme of Tamil New year, creating some dolls and depicting some celebratory activities. The competition was judged by senior management of the company, and the winners were awarded prizes.

Another game held was “passing the ball”. In this game, people were seated in the amphitheatre and a ball was passed as music was played. When the music was stopped at a random moment, the person who had the ball had to pick out a chit and perform the task specified on it. The game was fun-filled; various tasks, such as reciting a tongue-twister, giving a small speech, and some enactments, were performed by the Market Simplified family. Another game of blowing up the balloon in 1 minute also saw a great participation of my colleagues.

It was a great event which played the role of a catalyst to happiness and acted as a stress buster, letting everyone take their minds off work. It was truly a remarkable event which will remain in the memories of the employees. I would like to thank Abhilasha (HR) and Meena (Accounts) for conducting such a successful event, and to all my colleagues for making it a success with their participation.

About the author: Aditi Jain is currently an intern at Market Simplified India Ltd. She is pursuing MBA from Institute For Financial Management And Research (IFMR), Chennai.

Gamification meets banking

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The word ‘game’ takes us back to the games of our childhood days, where we actively used to play games and sometimes tried to work around the rules to win creatively. If you remember those games with your friends, what element made them hold our attention? They weren’t a source of income, and definitely not a real career option. And yet they were highly engaging – in many cases, more engaging than reality itself. Times changed. We’ve all grown from being kids crazy for games to being professionals doing serious real work. But games still invoke the child within us. So what was that magic sauce?

Meet the basic foundation of modern day gamification.

Gamification is defined as the application of typical elements of games (such as point scoring, competition with others, rules of play) to other areas of activity, typically to encourage engagement with a product or service. (If you are a person who likes formulae, Gamification = Existing Environment + Game Mechanics.)

Gamification in essence attempts to combine work with fun, creating an exciting experience for the user.

The basic idea of gamification is to incorporate the elements, design, and principles of games into a non-game environment in order to engage, educate as well as bond with customers. It can be said to be one of the best ways to painlessly and cost-effectively drift towards increased usage of digital channels instead of physical. And digital channels, as anyone can agree, result in significantly reduced operational/processing costs.

The concept of gamification may sound interesting. But are you wondering how such a concept can be applied to a transactional and unrelated segment such as banking? The trick is simple – ultimately, you – a banker – are dealing with a user who most probably would love to re-live the fun part of his/her childhood.

Gamification is the not the product that you are selling them. Gamification is the process through which you are going to guide them to buy.
By offering a unique experience, you sustainably create more chances to make a sale; rather than waiting for demand to catch up with supply, you are creating demand.

The next question a bank would ask is: Why? I’m doing great, I have plenty of customers and plenty of offerings to keep them happy. Why should I be interested in gamification? The answer lies in the changing demographics of your customers. Enter the new generation – the millennials.
Remember the long queues in the banks a decade ago? Don’t expect millennials to follow the same path. For millennials, everything revolves around convenience.

Banks can no longer afford to sit back and wait for customers to come by themselves to open accounts or use any other products.
Banks can no longer take customer loyalty for granted. Millennial customers of today are spoilt for choice. Give them a better deal and they will change teams in a jiffy. The modern user is driven by quality of experience, and hence always seeks a better experience. Gamification is a great way to give them that better experience and engagement. Apart from just increasing engagement, loyalty and financial literacy can also be grown via gamification.


What’s the way forward?

Gamification is not something new. It has been gradually evolving for a century now. Customer loyalty programs, earning bonuses, and redeeming points – all of these are gamification in action.

Technology in the form of wearables, fitness apps, and trackers, has enabled tracking of fitness and health data at unprecedented levels of detail, and can generate valuable insights regarding users’ health and well-being. The same concepts translate into the financial services world as well. For example, banks can gamify customer-facing tools to improve customers’ understanding of their own financial health, and also allow them to monitor progress towards other aspects like personalised savings targets.

For example, a prominent American Bank is using gamification in the form of different applications by the help of which customers are able to keep a check on their financials as well as health simultaneously. They introduced an app that helps people achieve their desired behavior of saving money by using a person’s daily activities to trigger automatic savings.

In the same manner, Banks now-a-days are trying to gamify customers daily activities. Each activity triggers a small amount of savings automatically with no extra effort. Notifications provide an instant gratification.

Gamification is also an effective tool to inform people about financial products, and therefore show a way to meeting regulatory compliance obligations on things like risk disclosures.

There is practically limitless potential in this domain. A few banks have already identified this potential, and are actively working towards incorporating gamification into their strategy at a grand scale. More players in the industry are poised to do so. The question is, are you?


About Market Simplified: Market Simplified is a thought leader in revolutionising and digitising products for financial institutions by continuously innovating and simplifying finance. We empower our customers with a cutting-edge digital experience that is highly personalised and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning, and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India, and many others across the globe.

About the author: Deepti hails from the Business Development team at Market Simplified and her business card reads Business Development Executive. She is obsessed with wanderlust and never says no for trips and tours. She claims herself a foodie and cooks well too.

Can Blockchain be a potential Game changer for the Stock Trading Industry?

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Blockchain for Trading Industry

Blockchain technology for Trading Industry

The Blockchain has certainly been the most talked about technology in the recent past, which was originally developed for digitizing and decentralizing the currency (bitcoin) by means of distributed ledger system. The technology is certainly not limited to digital currency, experts are now validating its application in areas such as shipping, supply chain, cross-border Trade Finance etc.

In December 2015, the Linux Foundation announced the creation of the Hyperledger Project. The objective of the project is to advance cross-industry collaboration by developing blockchains and distributed ledgers, with a particular focus on improving the performance and reliability of these systems.

Some of the early and prominent members from the financial sector of the initiative include J.P. Morgan, State Street, Wells Fargo, BNY Mellon etc

Can Blockchain technology be beneficial to the Trading Industry?

So, the imminent question in everyone’s mind right now is, can Blockchain technology be a game-changer for the stock broking industry?  Well, if we look at the Trading lifecycle especially the Post-Trade settlement, the process is broadly classified into the following steps

  • Comparing trade details of Buyer and Seller
  • Approval of the transaction
  • Change in records of ownership
  • Transfer of securities and cash.

This process takes around 3 days to complete a transaction, primarily due to the role of intermediaries, operational trade clearance and regulatory processes.

The use of Blockchain can potentially bring down the time required for the settlement process from days to minutes. This can reduce the cost drastically as trades are settled by peer confirmation. In this case there is no need for a clearing house, auditors to verify trades and custodians to ensure a fund has the shares they say they hold. Essentially, this is cutting out the middleman in the back office which means less costs in record keeping and in turn less overall cost of transactions.

Recently, SEBI has appointed the Committee on Financial and Regulatory Technologies (CFRT), for exploring the possibilities that blockchain platform has to offer, which has been making waves in the areas of fundraising and post-trade settlement.

The Front-Runners

nasdaq

Japan’s Financial Services Agency has allowed the Tokyo Stock Exchange, to use blockchain as its core trading infrastructure. Japanese brokerages have reportedly initiated a consortium, which is dedicated to hoisting the process of blockchain technology adoption, the founding members were organizations like Rakuten Securities, SBI Securities, Daiwa securities and Nomu.

Back In 2015, Nasdaq has unveiled the use of its Nasdaq Linq blockchain ledger technology which allows private companies not listed on a stock exchange to digitally represent their share ownership. Linq and blockchain provider Chain have successfully completed and recorded private securities transactions.

About Market Simplified: Market Simplified is a thought leader in revolutionizing and digitizing products for financial institutions by continuously innovating and simplifying finance. We empower our customers with a cutting-edge digital experience that is highly personalized and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India and many others across the globe.

About The Author: Shashidhar is currently working as a Manager-Key Alliances in Market Simplified India Ltd.

 

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