Indian stock brokerages move to big-data, robo-driven products
Reliance Securities launches new trading platform that uses big-data analytics and offers robo-insights to retail investors, named Tick
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Mumbai: Indian stock broking firms have started offering a bouquet of alternative tools and means of information such as Google Trends, including robo-advisory and robo-insights, to improvise the analysis available to investors in stock markets.
Robo-advisory services are defined as those that offer automated, low-cost, investment advisory services through web-based and/or mobile platforms.
This trend gains importance in the light of the fact that trading is getting extensively algorithm driven, and time sensitivity is more relevant than ever before.
Reliance Securities Ltd, the broking and distribution arm of Reliance Capital Ltd, is the latest to join this league by launching a web-based integrated trading platform that uses big-data analytics and offers robo-insights to retail investors, named Tick.
Tick captures and processes vast amounts of data using advanced algorithms, from published information across the web, including the social media, B. Gopkumar, CEO of broking and distribution business at Reliance Capital told reporters at a press conference on Monday.
“Whatever is published, it (robo) picks up, it crawls around," said Gopkumar.
He added that they do not have access to primary reports of other brokerages or research houses, but whatever is published or spoken by them in public domain would be captured by the product.
Tick scans, integrates and presents real time data analysis across various fundamental and technical parameters.
“Today, we are live on equities. We will go live on commodities and currencies shortly," said Gopkumar .
Last month, Kotak Institutional Equities, an arm of Kotak Securities Ltd, in collaboration with Google India, launched Consumer Querimetrix, a tool that demystifies and predicts near-term Indian consumer behaviour by analysing Google Trends data.
The first edition of Kotak’s product uses machine learning techniques and merges big data from Google Trends to provide consumer insights into India’s car buying journey.
While a couple of firms have started making a mark in this area, things are still in the nascent stage and lots is left to explore.
According to an 18 June 2015 report by consulting firm A.T. Kearney, robo-advisory is the next step in the evolution of asset management and financial advice.
The report had said that pricing—both low cost and transparent—is the critical element of any robo-advisory offering. The report added that to accelerate adoption, providers need to invest in increasing awareness of robo-advisory services and develop a track record to probe the strength of the business model to more careful, risk adverse investors.
“This is a step in the right direction. There is no doubt about it. With everything getting automated, it is about time such products come out," said independent market analyst Ambareesh Baliga, adding that the question is that how much can you differentiate among traditional products, except for the track record
“Traditional products will not vanish. Some people will always need human touch, but good traditional products will be available at a premium. This product is always more tailor-made," added Baliga.
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