A NEW PLATTER

TRADITIONAL FULL-SERVICE BROKERS ARE QUICKLY DIVERSIFYING TO OFFER A BOUQUET OF FINANCIAL SERVICES TO ADDRESS THE DECLINE IN BROKING INCOME AND NEW PLAYERS AND INVESTORS ENTERING THE MARKET

- ASHISH RUKHAIYAR

CHANGING FOCUS

• Full-service broking firms are aiming to become one-stop financial services platforms 
• They are betting big on distribution services for investments, savings, wealth management, etc.
• Their share of broking income is dipping due to the entry of aggressive discount players
• A key focus area for these firms is value-added services related to research and advisory

THE PAST FEW years have seen the Indian stock market attract new retail investors in hordes. For instance, nearly 2 million accounts were added just in the month of November 2022, as per data from markets regulator, the Securities and Exchange Board of India (Sebi). While that is music to the ears of brokerages, it is difficult to satisfy new-age investors, many of who want a single app for all their financial needs.

Brokerages, big and small, have cottoned on to this trend. While newer brokerages entice new investors with zero brokerage fees, the traditional, full-service brokerages— which offer trading facilities along with other value-added services like research and distribution—are aiming to become one-stop financial services platforms wherein one can not only trade in the markets but also get loans, invest in mutual funds and fixed deposits, look at retirement planning or buy insurance products, among other things.