Presently, the Philippines financial market is one of the most auspicious financial markets across the South-Asia with very few financial products suggested for trading at present but will augment during a few years. Trading activities around the Philippines is greatly delimited Due to very low trading capacity& relatively fewer trading accounts; most of the brokerage firms convey the brokerage services at the bottommost cost prescribed by the SEC. The players presently charge brokerage fees for the equity trading and plan to enlarge the financial services towards asset management, mutual funds, wealth management, algorithmic trading, top picks and several other services that can appeal the consumer. The industry increased at a negative CAGR throughout this period. The entire revenue in the financial brokerage industry observed an augment in the trend on account of a deduction in the simplification of tax structure for trading, growing investor’s confidence & political stability across Philippines in last year.
However, across India the Competition in full service brokerage is determined the financial brokerage market major players involving ICICI Securities, HDFC Securities, Kotak Securities, ShareKhan, MotilalOswal and several others competing on the basis of pricing, services suggested, offline network, quality of advisory & research services assisted, trading platforms and several others. With augment the financial & technological awareness, pricing became the top most contemplation for millennial tech savy investors leading to development of discount brokerage model.
However during current situation we see a transforming the trend of investors preferring to pay only for the services availed thereby forcing several FSBs to launch subscription/fee per service plans thereby generating them hybrid in nature. As this trend is projected to continue during future, we might see some of the leading full service players such as ICICI Securities transforming their operating models to the hybrid model.
In addition, the competitive landscape of financial brokerage market is categorized by exceedingly fragmented market structure with 104 brokerage firms competing majorly on the basis of transaction responsibilities, service portfolio, superiority of services, firm’s reputation and online trading conveniences for retail clients. Amongst the local brokerage firms, the leading player across the market is MandiriSekuritas in terms of revenue involvement to the industry whereas the CGS-CIMB has the greatest revenue market share amongst the worldwide firms.
Nonetheless, throughout the year 2018, the Indonesia financial brokerage industry revenue was accounted by the local brokerage firms due to the established branch network, corporation’s reputation amongst the domestic investors, competitive pricing for the online trading and quality of services suggested by the firms. However, the admission of worldwide brokerage firms and the augmenting the level of foreign portfolio investment have been posing an experiment to the governance of local brokerage firms.
Nonetheless, based on the full service financial brokerage market, the future for full service brokers has been showcasing unhinged growth, since such companies are misplacing a prominent share to the discount brokers across India. Enhancing and marketing their capability to help consumers meet their objectives with a suite of products and services will endure to strengthen their relationships over the long term. The ICICI Securities have been the greatest players in full service brokerage market, which was underwritten by having greatest number of clients relative to other peers. Due to the competition been augmented from discount brokers in the form of lower brokerage charges, the full service brokers have transformed their strategy to boost revenues from the non brokerage segment. The Asset management services, Portfolio management services, insurance broking and mutual funds are the non brokerage sector where such full services brokers have begun to aim. Therefore, it is predicted that the market o financial brokerage will increase around the globe.
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Ankur Gupta, Head Marketing & Communications