Over the years, the number of authorised persons has risen exponentially. Although the number of brokerage firms has remained steady at fifty odd firms, franchises have cropped up all across the country. Considering the high volume of Authorised Persons, competition among Authorised Persons is at its peak. Under the present circumstances, Authorised Persons are looking to leverage out of the box strategies to remain competitive. One of the strategies is to offer value-added services to their clients. Vinay Agarwal, CEO of Angel One in his interview with Outlook India stated, ‘value-added services are the key for an Authorised Person today’.
So, what are some value-added services that an Authorised Person should offer their clients? Let’s look at a few services that should be on every Authorised Persons list.
#1 Introduce Trading Platforms and Tools
Trading involves a lot of background preparation, research, and analysis. In order to make decisions to enhance their portfolio, traders must be able to make decisions on the go in real-time. Having an online trading platform where investors can view their portfolio, see upcoming trends and performance of different stocks is a valuable service that an Authorised Persons can provide. Another reason why a platform adds value to clients is that it enhances transparency of every investment. Investors can see how much they’ve invested, how much the Authorised Person is taking as commission, and finally how much is transferred to their demat account at the end of each day.
#2 Introduce Offline Trading Features
Traders (especially those in remote regions of the country) sometimes don’t have access to the internet. These traders can feel helpless when there is a crucial trade currently underway and due to non-availability of the internet, they miss out on this crucial opportunity. To bridge this technology gap, Authorised Persons should introduce offline trading features like SMS or call-in trade. This feature allows investors to make a trade even when they are offline. In the event a potential trade is on the move, the investor either gets a call or an SMS notifying him about the opportunity. Through this time, a financial advisor can help the investor through the trade.
#3 Streamline Portfolio Management
Giving investors the option to view and manage their portfolio is another great value add that you can leverage to your clients. An online portfolio gives investors the complete picture about their investments and the progress their stocks have made thus far. This also allows them to manage their money and see what their next investments should be. Some of the advantages of portfolio management are:
- Customized statements based on client requirements
- Reducing risk through diversification
- Managed by experienced professional managers
- Enhanced transparency with all statements shared with investors
- Regular monitoring of portfolio
- Better return on investments
#4 Easy Access to Market Experts
Investors need to know that their decisions are based on research and analysis conducted by market experts. To enhance confidence among investors, an Authorised Person should provide access to market experts from time to time. These experts can provide crucial financial advice about investment decisions and answer any queries about how best to plan ahead for the future. By doing this, an Authorised Person offers much needed value-added service that is highly valuable for every investor.
#5 Introduce Refer a Friend
As Warren Buffet said, “a mutually beneficial partnership is the longest lasting relationship”. Authorised Persons should offer their investors a bonus every time they refer a friend or family member. This way your investors are incentivized to bring in more investors and as an Authorised Person you get access to a larger pool of investors. When providing an incentive of any kind, it’s important to ensure that it remains meaningful to your investors. Your investors should have a compelling reason to buy into the referral scheme.
#6 Provide Online Support
Your clients should feel valued. You can do that by offering online support that is both meaningful and clarifies any doubts that may come up anytime. A study by Angel One shows that 42% of investors face various challenges while on trading platforms and or accessing the various tools. While technology plays a crucial role in streamlining stock trading, it can sometimes be a barrier for investors. To help investors get over the initial hurdles, it’s important to enable them to schedule meetings with experts to get the best assistance in understanding the various trading tools and platforms at a time when it’s convenient for them.