The rise of Fintechs shapes the trend of securities services

04-Jan-2019 Intellasia | Dau tu Chung khoan | 6:00 AM Print This Post

The Revolution 4.0 is changing the global financial market. The new foundation is gradually replacing using modern materials. In Vietnam, new technology trends have been formed to reshape the securities industry in the future.

Trend 1: Technology reduces transaction costs

Using technology to support business model is not new to securities companies, but business model determined by technology has just appeared recently.

Automatic technology applied from opening accounts to self-care, and consulting have eliminated operating and administrative costs, thereby reducing actual costs per customer.

Successful models can be named including Robinhood in the world market, and Techcombank Securities Company (TCBS) in Vietnam market. Since then, the net transaction cost at TCBS is about 50 percent compared to the market average, and the margin interest rate is only 9.9 percent per annum (p.a.).

“Smart customers will take advantage of advices from market experts to make decisions, but also use the iWealthPro incentive package (saving 50 percent of transaction fees, margin interest rate of 9.9 percent p.a.). Both are effective in terms of information and cost, the cost savings can range from several million to billions of dong,” said Mai Hoang Long, Securities Services manager of TCBS.

Trend 2: Technology connects idle resources in society

Similar to the story of Uber and Grab changing the global transport industry, lending market also have a gap for connecting of idle resources in society.

Uber/Grab drivers in finance are consultants with knowledge, experience and technology. Passengers are investors who want to bring financial capital from low to high. The demand for intellectual optimisation and capital always exists.

“At TCBS, we create a connection platform, iShare, similar to Uber/Grab. Customers and consultants have their own identification numbers. Customers choose consultants or recommend them to friends or relatives via identification code, each referral code earns bonus points equivalent to one million dong per customer, equivalent to 62 percent net fee during the transaction,” Long added.

This innovative model is not easy to carry out, but is based on the potential that TCBS accumulates with its position as a profitable securities company in the top TOP in the market. With this model, TCBS does not own, but there are hundreds and thousands of expert consultants in the market.

Trend 3: Technology forms a closed ecosystem

“Ecosystem” is the most expensive keyword today with the big Vingroup as the leader. In the financial market, each credit institution tries to build a diversified investment product ecosystem. However, unlike pure financial products, technology creates superior cost-effectiveness.

In order to create a closed ecosystem, TCBS uses technology to streamline capital flows: Starting from Vietnam Technological and Commercial Joint Stock Bank (Techcombank) with iWealth Account connecting bank and securities company, investors are able to perform all activities of bank accounts and securities accounts.

Only from one portal, investors can perform various financial services, from payment, savings to bond investment, fund certificates, stock, margin loans, etc. Applications using comprehensive support such as TCWealth, i-Advisor, Social invest, One-Click report, Copy trade will make the planning and decision making of investors much easier.

According to Long, cash flow from each individual is like a small spring, bunched up into a big river at TCBS, and from there they will spread throughout the river via different types of profitable assets.

In Techcombank’s system, a full range of assets are build with profitability, liquidity and expected risks from deposit certificates, investment fund certificates, bonds and stocks, coupons, real estate certificates, etc. so customers can flexibly choose to help optimise their cash flow and investment yields. Customers’ cash flow will nurture prosperous trees through these flows.

“Learning from Vingroup’s success in creating a” Living “ecosystem for human life, TCBS wanted to build the” Living “ecosystem for each customer’s financial life,” said Long.


Category: Finance, Vietnam

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