Philippines Equity Brokerage Revenue is Expected to Reach Over PHP 12.5 Billion by the Year Ending 2023 Ken Research
GURUGRAM, India, Sept. 17, 2019 /PRNewswire/ -- Key Findings
- Growth of Philippines Financial Brokerage Market is anticipated to be led by growth in trading volume through improvement in investor participation, surge in implementation of new technologies, collaboration between financial services firms, banks and fin-tech companies and growth of Fin-tech firms.
- There is a possibility that the Commodities & Derivatives exchange could not be re-opened by the government in short term. Unavailability of trading exchange dedicated to Commodity & Derivative would curtail newer segments
Emerging Technologies: Emergence of new technologies is expected to transform the way financial services operate. Advanced data analytics would be used in portfolio management to arrive at the right blend of securities to be added in a portfolio. Artificial intelligence would be used as a customer service tool, thereby reducing the response time while improving the quality of assistance simultaneously.
Collaboration between Financial Services Firms, Banks and Fin-Tech Companies: Traditional financial services firms and banks enjoy a high customer base due to their long presence in the market. Moreover, these institutions are also trusted by the population. However, lack of technological advancements has limited their scope and quality of services. This issue can be resolved in future by partnering with Fin-tech firms that provide technological solutions. This will benefit all parties involved in the partnership as the new technologies developed by Fin-tech firms can be put to large scale use by the banks to cater to the needs of their clients. The entities can work in layers wherein the banks can form as the base and the other entities can work above, constantly innovating.
Introduction of Derivatives Trading: Derivatives & Futures trading is prohibited in Philippines right now, but it is expected that the PSE and other stakeholders will succeed in opening a Commodities & Future Exchange in the next few years. This will increase products on which brokerage firms can earn brokerage commissions. Introduction of derivatives trading will also increase foreign capital inflow in Philippines as foreign investors would now be able to hedge their exposures on investment in Philippines.