The Evolution of Brokerage in Southeast Asia: Traditional vs. Online Models
Video Transcript
The brokerage industry in Southeast Asia is transforming rapidly due to technological advancements and changing investor preferences.
This transformation is redefining how investors engage with financial markets.
Discount brokerage models have grown significantly, especially after the COVID-19 pandemic.
This surge is driven by online trading platforms and mobile apps like Robinhood and We bull, which offer user-friendly interfaces and real-time data.
In India, pure-play discount brokers' market share increased from over 25% in FY20 to 60% in FY23.
Traditional brokerage houses are also experiencing growth, with the financial advisory market in Southeast Asia projected to grow at a compound annual growth rate of 0.40% from 2025 to 2029.
They provide sophisticated offerings and personalized advice, appealing to high-net-worth individuals.
Traditional brokers offer personalized investment advice, estate planning, and access to exclusive investment opportunities.
Discount brokers, on the other hand, facilitate online trading, offer low or zero commission fees, and provide access to a wide range of investment options.
Technology is crucial in shaping the brokerage experience.
Automation, data analysis, and cybersecurity enhance efficiency and security.
Mobile-first approaches and robo-advisors cater to tech-savvy investors, providing personalized advice and portfolio management.
Contemi's NOVA Post Trade is a cloud-based platform that automates post-trade processes, reducing costs and improving efficiency.
It offers scalability, straight-through processing, and AI-powered insights, enabling brokers to enhance customer satisfaction.
Southeast Asia's brokerage industry is poised for growth, with both traditional and discount brokers playing vital roles.
The hybrid brokerage model combines the strengths of both, offering technology-driven platforms with personalized advice.
In Southeast Asia’s evolving brokerage landscape, the future belongs to those who blend technology with expertise for efficiency and trust." says Gopala Subramanium, CEO of Capital Market Solutions & Group CFO, Contemi Solutions.
Read the detailed, well-researched whitepaper written by Gopala on The Evolution of Brokerage in South-East Asia; giving in-depth insights into the traditional and online models. Download the paper to learn more.
For more insights or to discuss with our experts, email info@contemi.com or visit nova.contemi.com to book a demo.
The brokerage industry in Southeast Asia is undergoing a rapid transformation, fuelled by technological advancements and changing investor preferences. Traditional full-service brokers, known for their personalised investment advice and comprehensive wealth management, are now competing with online discount brokers that offer low-cost, technology-driven platforms. The brokerage industry in Southeast Asia is undergoing a rapid transformation, fuelled by technological advancements and changing investor preferences. Traditional full-service brokers, known for their personalised investment advice and comprehensive wealth management, are now competing with online discount brokers that offer low-cost, technology-driven platforms.
The Evolution of Brokerage in Southeast Asia
Key Trends Shaping the Industry
- Rise of Discount Brokerage: The increasing adoption of mobile-first trading platforms, zero-commission models, and AI-driven insights has attracted a growing base of retail investors.
- Technology as a Game-Changer: Automation, robo - advisors, and data analytics are enhancing efficiency, security, and the overall trading experience.
- Hybrid Brokerage Model: A new trend is emerging - brokers that combine digital convenience with personalised advisory services.
- Regulatory and Market Pressures: Shortening trade settlement cycles and evolving regulations are pushing brokerages to invest in automation and efficiency.
The NOVA Advantage
NOVA’s Post-Trade Automation Solution empowers brokerage firms by streamlining operations, reducing costs, and mitigating risks through AI-powered insights and robotic process automation.
Download the full whitepaper to explore how brokerage firms can thrive in this evolving landscape.
Gopala Subramanium
CEO – Capital Market Solutions & Group CFO
Leave a Reply