The stock broking industry has faced some of the most turbulent times in recent years. The disruption in this industry can be attributed to technology advancement and, to an extent, the change in customer preference. Now, after so many years of flat to negative growth for several stock broking companies, the outlook has changed since the onset of the pandemic. The rapid pace at which the dematerialisation accounts were opened surprised most market participants, including the stock broking companies. The best part of this supernormal growth in the past 18 odd months has been the readiness of the broking companies to scale up.
INTERVIEW Prakarsh Gagdani, CEO, 5paisa.com
“We have accelerated our growth already”
What is the outlook for the broking industry in India? How is technology shaping the fortunes of the broking industry?
Technology-led broking companies are the main reason why the entire broking industry was disrupted in the last two years. Currently in India, approximately 40-45 million dematerialisation accounts exist and I think half of them came in the last two years. Now, in 30-40 years of existence of the broking industry, we saw half of the additions is just the last two years – that underlines the scale of disruptions that technology-led new-age broking firms like 5paisa.com have brought about. In a population of over 1.3 billion, we have barely scratched the surface with maybe less than 10% penetration while in the developed markets the penetration level is as high as 50%.
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