BFSIMarkets & Economy

New-age Fintechs: Seamlessly connecting millennials from T2 & T3 cities with Indian equity markets

By Prabhakar Tiwari, Chief Growth Officer, Angel Broking Ltd.

Prabhakar Tiwari, Chief Growth Officer, Angel Broking Ltd.

After the lockdown, India has seen a spurt of new entrants make their way into the equity markets. Powering the market rally this time is a fresh crop of traders- in the 25 to 35 age group- that is thundering in from tier 2 & tier 3 cities.

For years now Indian youngsters have kept pace with the digital revolution transforming the global business terrain. The 18-35 age bracket in India is second to none in picking up on digital payment, online investment, and online lending and banking apps. The Fintech sector in India is thriving and has a vibrant future thanks to a generation whose transactions are increasingly digital, and less and less reliant on physical methods.

Top-notch smartphones, easy connectivity to high-speed internet, hassle-free account opening and seamless access to digital banking have jointly catalysed the markets as well as investors’ profiles.  Sebi data shows that between April last and January this year, 10.7 million new demat accounts were opened. This is more than double the 4.7 million demat accounts that were opened in the whole of FY20.

However, opening a demat account and being a successful trader does not as a rule follow one another. To be in the latter category, one needs a reliable and technologically resourceful brokerage app that gives one the edge over other market players. This is where Angel Broking comes in.

The markets often belt out several challenges to newcomers and veterans alike. One is required to keep his knowledge bank updated and keep moving forward despite the blowbacks. This is all the more applicable to investors and market players arising from small towns.

Consider, for instance, the niche of algo traders and fintech entrepreneurs who are expanding the scope and reach of the secondary market by the day. Smart API by Angel Broking is helping these trailblazers by letting them take a sneak peek at the most critical functionalities of its trade execution engine. This helps the budding trader and entrepreneur to integrate his or her websites, apps and other platforms with Angel Broking’s trading systems. One can tap into Smart API and offer end-to-end broking service in virtually no time. And the brokerage house is providing this service free of cost catalysing the nascent interest in secondary markets.

But, beyond the cutting edge professionals are the everyday investors who want, for now, to only test the waters. The markets are often unsparing to the uneducated and the jargon-dense vocabulary of the markets make life all the more difficult for a newbie.

Many market novices worry (and rightly so) that the markets will be Greek and Latin to them. At such a critical juncture, these new rookie needs a firm and accessible guide through the overwhelming and confusing landscape. Smart Money, a market education initiative by Angel Broking, can help those who aim to know more and grasp better the dynamics and intricacies of the markets. 21 modules on a wide variety of topics help investors figure out their risk profiles and the trading journey they want to undertake.

Then, there are those who have had a taste of the nerve-wracking volatility of the markets, and have, sadly, lost their hard-earned wealth to sudden and unpredictable market movements. Many lose their wealth in the markets after heeding the advice of self-proclaimed financial experts or a “sure shot tip from family and friends”. The predicament here stems from the inclination to give in to the greed of a quick buck and the irrational decision making that goes with it. Arq Prime, another of Angel Broking’s offerings, helps clear this awful mess. It eliminates the disastrous fallouts of our human biases by following a rule-based investment approach. Its algorithm tests millions of combinations of investment rules to give investors that one investment rule that yields the maximum returns.

All in all, with so many tools at their disposal, the future for T2 & T3 investors can only get brighter from here on. The current influx of new demat accounts and thriving interest in the secondary markets shows that Indian millennials are here for the long haul. New technologies are progressively being adopted in a shorter period, and small-town India is testing out new investment opportunities wading into territories that have long been unknown terrain.

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