Web/Tech Archives -

Web/Tech Archives -

Can Blockchain be a potential Game changer for the Stock Trading Industry?

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Blockchain for Trading Industry

Blockchain technology for Trading Industry

The Blockchain has certainly been the most talked about technology in the recent past, which was originally developed for digitizing and decentralizing the currency (bitcoin) by means of distributed ledger system. The technology is certainly not limited to digital currency, experts are now validating its application in areas such as shipping, supply chain, cross-border Trade Finance etc.

In December 2015, the Linux Foundation announced the creation of the Hyperledger Project. The objective of the project is to advance cross-industry collaboration by developing blockchains and distributed ledgers, with a particular focus on improving the performance and reliability of these systems.

Some of the early and prominent members from the financial sector of the initiative include J.P. Morgan, State Street, Wells Fargo, BNY Mellon etc

Can Blockchain technology be beneficial to the Trading Industry?

So, the imminent question in everyone’s mind right now is, can Blockchain technology be a game-changer for the stock broking industry?  Well, if we look at the Trading lifecycle especially the Post-Trade settlement, the process is broadly classified into the following steps

  • Comparing trade details of Buyer and Seller
  • Approval of the transaction
  • Change in records of ownership
  • Transfer of securities and cash.

This process takes around 3 days to complete a transaction, primarily due to the role of intermediaries, operational trade clearance and regulatory processes.

The use of Blockchain can potentially bring down the time required for the settlement process from days to minutes. This can reduce the cost drastically as trades are settled by peer confirmation. In this case there is no need for a clearing house, auditors to verify trades and custodians to ensure a fund has the shares they say they hold. Essentially, this is cutting out the middleman in the back office which means less costs in record keeping and in turn less overall cost of transactions.

Recently, SEBI has appointed the Committee on Financial and Regulatory Technologies (CFRT), for exploring the possibilities that blockchain platform has to offer, which has been making waves in the areas of fundraising and post-trade settlement.

The Front-Runners

nasdaq

Japan’s Financial Services Agency has allowed the Tokyo Stock Exchange, to use blockchain as its core trading infrastructure. Japanese brokerages have reportedly initiated a consortium, which is dedicated to hoisting the process of blockchain technology adoption, the founding members were organizations like Rakuten Securities, SBI Securities, Daiwa securities and Nomu.

Back In 2015, Nasdaq has unveiled the use of its Nasdaq Linq blockchain ledger technology which allows private companies not listed on a stock exchange to digitally represent their share ownership. Linq and blockchain provider Chain have successfully completed and recorded private securities transactions.

About Market Simplified: Market Simplified is a thought leader in revolutionizing and digitizing products for financial institutions by continuously innovating and simplifying finance. We empower our customers with a cutting-edge digital experience that is highly personalized and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India and many others across the globe.

About The Author: Shashidhar is currently working as a Manager-Key Alliances in Market Simplified India Ltd.

 

Congratulations ‘Team Charles Schwab’ for the launch of the first Human-Robo Financial Advisor

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congratulations 'team charles schwab'Congratulations ‘Team Charles Schwab’ for achieving your first technological milestone in the Artificial Intelligence segment!

Charles Schwab is a pioneer in providing the best in class trading experience for its customers. This year, Schwab has released its hybrid Intelligent Robotic Advisory coupled with guidance from Certified Financial Professionals (CFP) that has broken all barriers between man and machine.

AI is a new advancement that has come into vogue at a time when all of us feel humanization could be reduced in order to increase accuracy and precision in simple tasks. But, Charles Schwab thought differently and has come up with a human-Robo integration to bring in a personal touch for its customers by not being too archaic at the same time.

Schwab Intelligent Advisory as they call it provides clients with multiple investment options. This includes retirement planning solutions, taking into account, the customers’ financial plans and spending patterns. The solution provides unlimited access to a human advisor via phone or video conference and an investment portfolio of exchange-traded funds managed by computer algorithms. This is the first time humanization has been integrated so seamlessly with AI, such that customers do not feel that they are talking to a programmed machine to take their financial decisions. The investment professionals at Schwab provide support for their customers across all major asset classes. Interestingly we have already developed and designed a complete brokerage suite for OptionsXpress that has a 4 star rating in Google Play Store. To know more about this application, click here.

A highly sophisticated computer algorithm developed by our technical experts takes potential clients’ answers to our Investor Profile Questionnaire about their personal goals, time horizon and risk tolerance—and recommends a suitable portfolio for their accounts. Each portfolio can include up to 20 asset classes to ensure appropriate diversification.”  – Walt Bettinger, CEO, Charles Schwab

Last week, I had written about our Kotak 811’s digital customer on-boarding solution that we developed for them and is offered in India for the first time. The highlight of this solution is that, customers can open their bank accounts just within 5 mins. This is yet another instance where our partner firm has reached a technological mile stone and we are indeed proud of Schwab’s achievement.

About Charles Schwab: Charles Schwab is one of the largest brokerage firms in the United States. The company provides services for individuals and institutions that are investing online. The company offers an electronic trading platform for the purchase and sale of financial securities including common stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides margin lending, and cash management services. Schwab also provides services through registered investment advisers. To know more about Charles Schwab, visit www.schwab.com or www.optionsxpress.com

About Market Simplified: Market Simplified is a thought leader in revolutionizing and digitizing products for financial institutions by continuously innovating and simplifying finance. We empower our customers with cutting edge digital experience that is highly personalized and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India and many others across the globe.

 About the author: Venkat Rangan is the Founder and CEO of Market Simplified Inc. He is a technology enthusiast. Venkat also has great interest in aviation and loves to read and learn about airplanes. Whenever he gets time, he likes to fly the Cessna Sky Hawk 172. His dream is to fly the Gulf Stream G650. Sometimes it makes us wonder – why he isn’t a pilot or running an airline business…

Gulf stream G650

Gulf stream G650

 

Kotak’s 811 Banking App – Digital Customer On-boarding for the first time in India

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kotak 811

Of late, there have been lot of talks on how financial institutions need to take steps to engage and retain their customers. Once we have engaged them, how do we get them to stay interested? In other words, how do we make their banking simpler? How do we transform their banking experience to a whole new level? We, at Market Simplified, faced the same challenge when our client ‘Kotak Bank’ approached us stating that they wanted to increase their customer base up to 2 times. This was just about the time demonetization occurred. When the whole nation was struggling to change their 500s and 1000 rupee notes, we were brainstorming for a solution that could turn around things for Kotak.

Customer on-boarding is an important part of account set up process for any bank. On the down side, this was the only area that was not automated since these were important details and humanization was necessary to check for any discrepancies. But on the up side, automation of this process also eliminates any man made errors resulting in fool proof on-boarding of new customers. Customers will find this as a great value addition as they will not have to physically be present at the bank for opening an account. This is all the more important in case of millennial customers as they are looking for convenience banking and very little interaction with brick and mortar bank.

Many banks and financial institutions have come up with various methods to simplify banking for its customers by making mobile apps, bot based banking and so many others. We are among the very few to think of a solution to on-board customers by just using the app that needs no physical presence at the bank and which is also completely paperless. All the customer needs is, an Aadhar and a Pan card to finish his account set up. This will be a major step forward for  customer service and very few banks have actually done this paperless customer on-boarding.

Uday Kotak, Executive Vice Chairman & Managing Director, Kotak Mahindra Bank said,“We have always believed in value creation for our stakeholders. In pursuit of this, we have implemented multiple strategies – both organic and inorganic – thereby establishing our presence across the entire gamut of financial services. We aim to double our customer base in 18 months. 8/11 changed India. 811 aims to take our Prime Minister’s vision forward. It offers access to over 100 features on mobile including completing financial transactions, managing investments, fund transfer, and is an ideal lifestyle app for e-commerce on Flipkart, PVR, Goibibo, etc. 811 is fully integrated with Bharat QR Code, India’s new digital payment system, developed by the Government of India. The app is also Unified Payment Interface (UPI) enabled, for instantly sending and receiving money. Further, 811 customers will enjoy all digital transactions at zero cost, and get a free virtual debit card.”

kotak pan   Kotak Aadhar

I wish to thank my entire team at Market Simplified, for enabling us to achieve this great milestone which only a few other banks have achieved so far. Also, Kotak Bank has been our premiere customer and it has been a pleasure working with them as they constantly give us new challenges to work on. After Kotak 811, Kotak’s customer base has increased to 17 million with close to 500,000 installs and the app also has a 4.5 star rating. To know more about Kotak 811, click here.

About Market Simplified: Market Simplified is a thought leader in revolutionizing and digitizing products for financial institutions by continuously innovating and simplifying finance. We empower our customers with cutting edge digital experience that is highly personalized and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India and many others across the globe.

 About the author: Venkat Rangan is the Founder and CEO of Market Simplified Inc. He is a technology enthusiast. Venkat also has great interest in aviation and loves to read and learn about airplanes. Whenever he gets time, he likes to fly the Cessna Sky Hawk 172. His dream is to fly the Gulf Stream G650. Sometimes it makes us wonder – why he isn’t a pilot or running an airline business…
 
Gulf stream G650

A Novel Venture of Google

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Google ‘Philanthrophy’ and you might see the company topping the list. Google has decided to give $25 million on grants and investment which again would focus on novel causes like that of ‘predicting and preventing infectious diseases like SARS’. The amount seems to be just part of the $175 million that the company decided to spend over 3 years on investements in cuases like that mentioned above, for greener technology etc. It is reported that Google had decided to fund companies developing clean energy technology, the whole idea might lead to greener and cleaner technology, as direct investments would lead to cheaper production of renewable energy in comparison to coal and this inturn would reduce green house gas emission. Simple but effective.
Google like its other ventures has turned given a whole new meaning for ‘Philanthrophy’. Google as a non-profit organisation pays taxes and investes in technology that would lead to cheaper output and also help in conserving non-renewable energy along with reducing the pollution. Charity might not achieve its end if it does not reach the intended goal; with google’s strategy in philanthrophy it might able to achieve what many had intended in the name of charity.

Financial wise also Google seems to be leading the pack with an investment of about $60 million a year. The term ‘Corporate Responisbilities’ has gone well with many of the big names in corporate like Microsoft, Hewelett Packard and eBay, topping the list though is the Gates Foundation. Giving back to the society is one very appreciated way of bringing the cycle to a full round.

Interesting Innovations

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I thought I will share this news with you; According to the ‘Popular Science Magazine, two of the popular innovation seem to be that of ‘CESSNA 162 skycatcher’, a light sport vehicle which is cheap as well as sophisticated. It comes with equipped with modest but useful gadgets like that of ‘user friendly digital instrument’ that makes it easy for navigation and flight information. It is priced around 1,09,500.

The other is the ‘Eclipse Concept Jet’ or ECJ which has removed the constraint of price for many corporates and individuals who till now had to spend in many millions to own a private jet. Not only does the ECJ fits the buget but its beautiful design is treat to the eye as well as technically impressive; its Single Pratt and Whitney turbofan jet atop the fuselage and forward of the V tail enables it to have greater balance, aerodynamics and engine efficiency. It can run upto 390 miler an hour at upto 41000 feet and costs around one million.
wish I could provide you with the photographs but unable to do so, probably in the near future I would be able to provide you the link on these two Jets which features it s photos too.