In the present world, it has become effortless to do financial transactions. With a click on the phone, you can transfer a huge amount of money across any corner of the world. This is all possible due to the rapid innovation and revolution in the space of the fintech industry. FinTech, which stands for Financial Technology, is simply a new technology that helps people easily use and access financial services such as digital transactions, credit lending, insurance, and personal finance. With the pandemic going on, it becomes even more essential to have an online interface for every activity ranging from banking, health, and education.
India is one of the fastest-growing markets for FinTech in India. The fintech industry started with the liberalization of the banking sector, but now with the pandemic, personal finance is another sector that is booming. Due to the reduction of the repo rate by the RBI, the savings account interest rates, as well as the Fixed Deposit (FD) rates, have decreased. With the lockdown, people tend to look for alternate sources of income which is why they started investing in the stock market. As of June 2021, there are 6.2 million demat accounts in India, and there is a lot of scope of penetration in Tier II and Tier III cities. Angel Broking is the largest broking house in India, and the third-largest in terms of the number of clients. To improve the strong connection with clients and provide the best services to the people, the company has redefined itself to Angel One. It is emerging as a key player in the Fintech industry with the use of extensive technology to help people create wealth in their life.
Over the next 10 years, Angel One predicts massive growth opportunities unfolding in the FinTech industry, as India would open up more aggressively to the idea of systematic wealth creation. People are just at the inflection point of this FinTech revolution. Though being about a quarter old into the system, Angel seems to have the skillset and the vision to attain a leadership position over the next couple of years.
Apart from the inbuilt tools such as SmartStore, ARQ Prime, SmartBuzz, and many others, it also houses an architecture to integrate third-party products such as smallcase, Vested, and Streak. Being in the fintech market, Angel One also has a Machine Learning based advisory called ARQ, which provides advice on equity investment. It generates alphas by algorithms based on fundamental and quantitative factors. There are many risks. The product has outperformed BSE 100 since inception by a decent margin. Many risk management rules are enforced, such as keeping a certain percentage of cash based on the market outlook. Another product fit for the fintech market which Angel One hosts is SmartStore. It is a complete ecosystem boasting of many fintech products and services. It will also give the traders a forum to interact with each other and share their opinions.
Angel One has shifted from a physical model to being completely digital with zero branches. To improve the digital experience, it continues to use Artificial Intelligence and Machine Learning methods. With the digitization and power of data science, it wanted to break the perception of a traditional broking company and create a connection with the youth and Gen Z millennials. Angel one is also developing a Super App, which would be a single place where investors could buy stocks as well as other financial products such as mutual funds and insurance schemes. Angel One has 5.3 million demat accounts out of which 2 million form the NSE Active Client. The infrastructure is robust enough covering 5.4 million at a given time. With more than 12 million App downloads, Angel One has 75% of the orders placed on the app.
Moving forward, Angel One aims to capitalize on the growing investable wealth in India and leverage technology to penetrate new customers in Tier II cities and beyond. The vision is to be the largest broking house in India and to establish a dedicated and loyal client base.
India’s FinTech industry is at the cusp of strong growth, players who are able to identify this opportunity early will lead this growth. The fintech industry is on a boom and still has a long way ahead. With more financial inclusion and literacy, especially in the rural areas, it is imperative to have a proper infrastructure to make financial services feasible and easier for everyone. With companies such as Angel One, the journey ahead definitely looks bright and prosperous.