Over 83% stock brokers plan to spur IT budgets to leverage emerging technologies: ANMI survey

The broking industry is experiencing a shift towards technology, with 83.6% of stock brokers planning to shore-up their IT budgets in 2024-25 to focus on artificial intelligence and algorithmic trading to boost efficiency and customer experience, as per the survey conducted by ANMI among its 900 members.

Of these, 42% brokers are looking to increase the budget by 20%, according to the StockTech survey 2024-25 released on Friday.

Moreover, the emphasis on technologies such as Artificial Intelligence (AI), algorithmic trading and blockchain is driving brokers to recruit skilled professionals in these fields with 66 per cent of broking firms surveyed intending to increase their IT manpower or recruit new talent.

The Association of National Exchanges Members of India (ANMI) carried out the survey to delve deeper into the role of financial technology in the stock broking sector.

The survey found that 34.3% of respondents prioritise AI and machine learning (ML) to drive predictive analytics and personalised trading strategies, while 32.9% focus on algorithmic trading, emphasising precision and automation and the remaining 7.1% embrace blockchain for secure and transparent operations.

"As stockbrokers increasingly prioritise investments in AI, blockchain, and algorithmic trading, SEBI remains committed to fostering an environment of innovation, transparency, and investor protection. By embracing emerging technologies alongside robust risk management frameworks, the industry can achieve sustainable growth while safeguarding the interests of market participants," SEBI Executive Director V Sundaresan said.

Over 60% of stock brokers surveyed have digitised more than 50% of their business processes, reflecting a strong push toward operational modernisation.

Notably, 84.8% of respondents cited safety as a critical priority, underscoring the need for robust risk management and cybersecurity strategies.

Further, 90.9% of respondents value simplicity, emphasising user-friendly platforms to foster retail investor participation.

ANMI Chairman Harin Mehta said the survey offers a deep-dive into the technological evolution of India's stockbroking industry. With growing investments in AI, automation, and security, the industry is poised to deliver enhanced resilience and inclusivity.