Indian stockbrokers to increase IT budgets to adopt emerging technologies

MUMBAI Mumbai: Eight out of 10 (83.6 per cent) stockbrokers in India plan to increase their IT budgets in 2024-25, with 41.8 per cent targeting a 20 per cent increase, according to a report on Friday.The ‘Stocktech Survey 2024-25’ by the Association of National Exchanges Members of India Western Region (ANMI-WIRC) revealed that stockbrokers continue to focus on implementing cutting-edge technologies such as artificial intelligence (AI), algorithmic trading and blockchain to enhance efficiency, scalability and customer experience.

Harin Mehta, Chairman, ANMI, said the survey takes a deep dive into the technological evolution of India’s stockbroking industry. With rising investments in AI, automation, and security, the industry is set to offer better flexibility and inclusivity. According to the survey, “34.3 per cent of stockbrokers prefer AI and ML to pursue predictive analytics and personalized trading strategies. While 32.9 per cent of stockbrokers focus on algorithmic trading, with an emphasis on accuracy and automation.”

However, the survey states that 7.1 per cent of stockbrokers adopt blockchain for secure and transparent operations. According to the survey, over 60 per cent of stockbrokers have digitized more than 50 per cent of their business processes, reflecting a strong move towards operational modernization.

In the survey, 84.8 per cent of respondents cited security as a key priority, underscoring the need for robust risk management and cybersecurity strategies. While, 90.9 per cent valued simplicity, stressing on user-friendly platforms to boost retail investor participation. V. Sundaresan, Executive Director, SEBI, said, “The Stocktech Survey 2024-25 underlines the transformational potential of technology in India’s capital markets as stockbrokers are increasingly prioritising investments in AI, blockchain and algorithmic trading.