Over 83% of stockbrokers planning to increase IT budgets in 2024-25: ANMI report

Around 83.6 per cent of stockbrokers are planning to increase their IT budgets in 2024-25, as per the Association of National Exchanges Members of India Western region (ANMI-WIRC) survey conducted among its 900 members on Friday, November 22.

This means eight out of 10 stockbrokers with 41.8 per cent targeting 20 per cent rise in their budget, the report said.

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.

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

According to the survey, "34.3 per cent of stockbrokers prioritise AI and ML to drive predictive analytics and personalised trading strategies. While 32.9 per cent stockbrokers focus on algorithmic trading, emphasising precision and automation."

However, 7.1 per cent of stockbrokers embrace blockchain for secure and transparent operations, a survey said.

In survey, 84.8 per cent of respondents cited safety as a critical priority, underscoring the need for robust risk management and cybersecurity strategies. While, 90.9 per cent value simplicity, emphasizing user-friendly platforms to foster retail investor participation.

V. Sundaresan, Executive Director, SEBI said, “The StockTech Survey 2024-25 underscores the transformative potential of technology in India's capital markets. 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,” he added.

With agencies inputs