Fintech will increase investor confidence in the stock market: Experts
Investor confidence, transparency and access to the stock market will increase as fintech is used [technology used to support or enable banking and financial services] is increasing, market experts said at an event marking World Investor Week.
Fintech can play a big role in the stock market because many professionals are coming to this market and by using modern technology they are promoting the market, experts said at the program organized by Dhaka Stock Exchange (DSE) and DSE Brokers Association of Bangladesh (DBA), at DSE office in the capital on Monday.
Bangladesh Securities and Exchange Commission (BSEC) Commissioner Md Abdul Halim was present as the chief guest at the event chaired by DSE Chairman Eunusur Rahman.
Presenting the keynote at the event, Md Saifuddin, Managing Director of IDLC Securities Limited said, “Trust is the most important factor for any financial system to work. And transparency will improve the investor community’s confidence to enter the capital market.”
Furthermore, real-time pricing and immediate access to transactions also play an important role for investors in the capital market, such as ledger history, breakdown of all fees and charges, tax reports, audit trails and analytics on trades, he added.
“Digital brokerage services worldwide have increased manifold during the coronavirus pandemic. Such services are also growing in Bangladesh. Currently, there are 18 lakh Beneficiary Owner (BO) accounts [required for stock market trading] in the country, which could increase to 80 lakh by 2030,” he added.
BSEC Commissioner Abdul Halim said, “Ordinary investors in the stock market are suffering losses due to lack of professional expertise and various other reasons. These investors need to be protected with education in investments.”
Two major incidents have occurred in our market in the past, and many laws and regulations have been created to prevent such situations in the future. Apart from this, many reformative activities have also been carried out to improve the market, he said.
“About 58% of the US citizens participate in the stock market, but in our country only 2% (a little over 10 lakh) of the citizens are involved in the market. By 2030, the number is likely to rise to 80 lakh,” Abdul Halim added.
DSE Chairman Eunusur Rahman said, “DSE is working on setting up a state-of-the-art data center. We hope that a state-of-the-art data center will be established by 2022. The more fintech is used, the more risks will come We need to be aware of some important conditions to minimize these risks.”
President of DSE Brokers Association of Bangladesh (DBA), Richard D Rosario, said: “We are all closely connected with technology. Dhaka Stock Exchange has followed the same path. It has already taken various steps so that trading will never stop.”
“Government securities are now traded in the stock market. A new window has opened in the market and as a result the trading volume will increase,” he added.
