Interview: “Thanks to technology, equity cult is fast-changing, and so are we,” Says Jones George, Chief Digital Officer, Geojit Financial Services

Date:

Trending

In conversation with Jones George, Chief Digital Officer, Geojit Financial Services on how technology is nurturing the equity culture and the way the future of stock trading business will pan out, Jones told TechGraph that, “Technology is growing at an incredibly fast rate, but at the same time, there are so many developments that are increasingly becoming obsolete as well.”

- Advertisement -

Read the complete transcript:

TechGraph: How is technology transforming the stock trading business? Do you think the trend had taken hold even before the pandemic-induced disruptions?

- Advertisement -

Jones George: Yes, of course, technology has been transforming the trading business in many ways much before the pandemic induced disruptions. Owing to technological changes, today the market is more mature, transparent, agile, and is rewarding for those who are willing to take well-calculated risks. Thanks to technology, the equity cult is fast-changing, and so are we.

An example of the use of technology would be that high-frequency trades command one-third of the daily trading volumes. This has been the trend for the past few years and the ratio continues even during the pandemic. 

Similarly, not too long ago, opening a trading account was a cumbersome process but Aadhaar facilitated opening accounts online. This is one of the strongest reasons why the industry has been able to bring in a record number of traders and investors.

TechGraph: What are the common tools used to build new investor engagement models? Do you see AI and Big data analytics emerging as game-changers for equity trading?       

Jones George: I believe there are two schools of thought that can be applied here. The first is to respond to the market demand or adopt a follower strategy. The second and more proactive way in my view is to spot a trend in advance and pioneer with a product or service just as demand starts to build. We believe in following the second path. As a result, for our tool kit, we use a full suite of technology-driven communication channels to keep our customers connected on a real-time basis. 

Recently, we launched a platform called Smartfolios, offering baskets of stocks, which runs on big data and helps research analysts to pick quality stocks. The platform alerts all clients holding similar baskets whenever there is a change in its constitution. The feedback for the platform has been extremely encouraging and we are working on deploying a similar solution on all our platforms. 

Besides equity trading, big data also helps us to better cross-sell other distribution products to our clients. We are currently experimenting with AI models in our operations, which will be graduating from its existing environment very soon.

TechGraph: Millions of millennials have started stock trading in a big way post-pandemic outbreak. Do you think this will `democratize’ the equity markets? 

Jones George: Yes, Between March last year since WHO declared Covid-19 as a global pandemic, and today, approximately one crore new investor accounts were opened. 

Similarly, another 80-90 lakh or so Mutual Fund folios have also gone live. We see unprecedented retail participation in the stock market and a substantial percentage of them are in their late 20s or early 30s. You can only ignore them at your own risk and peril. 

However, there seems to be a case to create better awareness of the risks of trading among millennials. The last year has largely seen a bull run in the market so a lot of new entrants have benefited but this should not let anyone be complacent. Stock markets can be extremely humbling. As for whether the flood of new investors would democratize the market, I think it is too soon to reach a conclusion. We would have to see the market activity at least through one correction to make a better judgment. 

However, this surge in millennial accounts shows that the next generation is capable of thinking beyond the traditional investment vehicles.

TechGraph: What also intrigues us and to a certain extend bothers us is a study that we conducted some time ago to see how many clients make money from trading? 

Jones George: We found that 90 % of day traders among retail clients lose money in derivatives trading and an equally staggering 80% in cash intraday trading. This is bothering us when we see the flood of millennials into trading rather than investing for wealth creation. We would like to handhold them using technology tools to help them create wealth. We did see traders burn their fingers and then coming back to us for help.

TechGraph: What are the steps your firm has taken to roll out new tech tools and digital platforms which appeal to new-age investors?

Jones George: We offer the entire suite of products and services that cut across all technology platforms starting from mobile apps to social media platforms to short messaging or micro-blogging sites. Since the lockdown, we have seen an increase in customer communication through Whatsapp. 

Since Whatsapp messages weren’t recorded, we wouldn’t accept orders through it. Not only did we release an official Whatsapp channel, but we were also able to connect a client directly with his/her relationship manager and make it as seamless as a one-to-one interaction and record the conversation. 

Our new digital onboarding platform integrates with DigiLocker and UIDAI to make customer onboarding as seamless as possible. We have some exciting new releases on the tech front in the coming months to help new investors make better investment decisions.

TechGraph: What is your view on discount broking?  Do you think regulations will pose a major hurdle for discount broking in the days to come?   

Jones George:  Geojit is a full-service broker, and what it means is that we provide end-to-end assistance to clients to help them make good investment decisions. Our aim is to facilitate our clients to be wealth creators. As our tagline says, we want to be the people our clients prosper with. 

Our clients feel safer knowing that there is always a branch of Geojit at their disposal for whatever their needs. Our digital technologies are not built to displace this human connection, but to augment it. In plain words, there is a large market out there for discount broking but there is a larger market for organizations such as ours to help people create wealth. I do not see any particular regulation that will affect only one side of the broking industry.

TechGraph: Geojit has recently launched a global investment platform based on artificial intelligence to buy international equities. Do you see a rising appetite for international stocks like Apple, Google, and Facebook?

Jones George: The global investment platform was launched in response to demand from a section of clients who wanted to diversify their portfolio beyond geographical boundaries. Indians are also consumers of services and products offer by many companies like Apple, Google, Facebook, Netflix, and so on. Being consumers, it is only likely that there is also a high interest in the stocks of such companies. 

This will definitely go up in the coming years. The onboarding process, although online, is a bit cumbersome right now since there is a stringent KYC process as it goes through the Liberalised Remittance Route. I am sure that these processes will also ease as technology evolves.

TechGraph: Geojit has been collaborating with technology partners to boost its digital footprint. Going forward, do you see more such engagements?

Jones George: Yes. Our quest for new technology that will benefit our customers and business is insatiable and our technology platform is immensely scalable/flexible in order to accommodate new products seamlessly. We are already working with a few technology companies to provide better information to our clients on their investments. 

World over, companies are opening up their systems to create a more collaborative ecosystem. We also believe that greater collaboration leads to greater benefits and that will be the trajectory we will aim to take as well.

TechGraph: Which are the new technologies, ideas, streams that are kindling interest in you and your team? Don’t you think investing well ahead of the technology curve is the right thing to do to future-proof business?

Jones George: Definitely yes. We believe in the magic power of technology and strongly believe in the digital-first strategy. We have always invested in technology much ahead of the curve and we will continue to do so. Internally, we are experimenting with AI models and RPAs to enhance operations and reduce turnaround time. 

We are also studying how algo-trades can benefit the larger mass of investors rather than just a small section of people. Technology is growing at an incredibly fast rate, but at the same time, there are so many developments that are increasingly becoming obsolete as well. There are a lot of new developments which couldn’t take off. 

Even Google has spent billions on extremely fascinating projects but had to shut down because it was either too soon or it couldn’t keep up. The art is in identifying what will stick but I believe that the most important thing is whether the piece of technology aligns with the organizational vision.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

- Advertisement -

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Onlygood AI CEO Rajeev Sinha on Future of AI-Driven ESG Data and Supply Chain Transparency

Speaking to TechGraph, Rajeev Sinha, CEO & Co-founder of Onlygood.ai, shares insights on how his company is helping smaller businesses leverage AI and IoT...

Vishal Puri On Spalba’s Tech-Driven Approach To Venue Booking & Planning

Speaking to TechGraph, Vishal Puri, Co-Founder of Spalba, explains how its platform uses technologies like Digital Twins and real-time analytics to provide event planners with interactive previews while giving venue owners deep data to optimize sales and marketing strategies and help event planners make...

INTERVIEW: ADDA’s Krishanu Mukherjee on Transforming Gated Communities

In an interview with TechGraph, Krishanu Mukherjee, AVP of Growth at ADDA.io, explained how...

Choosing the Right Tax Consultant: A Guide for Businesses and Individuals

For both individuals and businesses, tax planning and compliance are crucial aspects of financial...

Wired vs. Wireless Headsets: A Comparative Guide for Evolving Audio Needs

Across a wide range of demographics, including gamers, fitness enthusiasts, business executives, and remote...

The Rise of Conversational AI: What It Means for Tech and SaaS Businesses

Back in the time, when AI was not as prominent, businesses used to struggle...

Union Budget 2025-26 Reactions: EV Makers Welcome Tax Relief and Infrastructure Investments

India’s electric vehicle industry has welcomed the Union Budget 2025-26, citing exemptions on capital...

Healthcare Reactions to Budget 2025-26: Experts Back Investments in Cancer Care & AI but Call for Broader Mental Health Policies

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has drawn mixed reactions...

Life Insurance Death Benefit Payouts: What Your Family Needs to Know

It is important to know more about life insurance policies and their operational modalities. The most important factor is, of course, the pre-fixed insurer...

Preparing Your Staff To Host A Successful Business Event In Another City

A business event, a convention, and exhibition, a trade show - all of these...

TradeFT Review: Comprehensive Platform Overview 2025

The financial markets are abuzz with some pretty exciting developments as 2025 gets underway,...

Krikya Bangladesh Casino App Review

The Krikya app delivers a seamless and engaging mobile gambling experience for users of...

Union Budget 2025-26: MSME Leaders Back Investment Limit Hike, Call E-Shram Expansion Crucial

The MSME sector has responded positively to the Union Budget 2025-26, with experts highlighting...

From GCC & AI to DeepTech Investments: How Tech Experts React to the Union Budget 2025

Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 has drawn mixed reactions from technology industry leaders, particularly on the government’s push for deep tech and...

Union Budget 2025-26 Reactions: Education Sector Applauds AI, Skilling Initiatives but Flags Funding Gaps

India’s education sector leaders have responded to the Union Budget 2025-26 with optimism and concern. While the budget introduces key measures such as 50,000 new Atal Tinkering Labs, AI-focused Centres of Excellence, and broadband expansion in government schools, some experts argue that the ₹1.28...

Union Budget 2025: India’s AI Budget Allocation Stirs Mixed Reactions

India’s Finance Minister Nirmala Sitharaman's announcement of a ₹500 crore fund for a Centre...

Union Budget 2025: Investors, Startups React to Govt’s Push for Fund of Funds, FSS Scheme and Deeptech

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on Saturday, has drawn...

AI in Skill Development: What Budget 2025 Should Do to Close the Workforce Skills Gap

India, with its vast pool of young talent, faces a significant challenge: a widening...

Union Budget 2025 Expectations: Hospitality Sector Urges Budget Support for Tourism Growth and Workforce Development

With the Union Budget 2025 on the horizon, hospitality sector leaders are calling for...

Cash out Tether USDT to Renminbi in Guangzhou

If you need to quickly and safely Cash out Tether USDT to Renminbi in...

Union Budget 2025 Expectations: Insurance Sector Eyes Tax Incentives, Sops to Expand Health Insurance Reach

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025 on February...

Solar, Renewable Sector Expects Tax Breaks, Subsidies for BESS & Solar Financing Reform From Budget 2025

As Union Budget 2025 approaches, renewable energy leaders are urging Finance Minister Nirmala Sitharaman...

Gaming Industry Eyes Budget 2025 for Relief on GST and Boosted AVGC Support

With the Union Budget just days away, the gaming sector is growing hopeful that...

Adoption of Low Code Platforms by MSMEs for Operational Efficiency of Their Supply Chains

Micro, small, and medium enterprises are the backbone of the world and account for...

Krikya Bangladesh Casino App Review

The Krikya app delivers a seamless and engaging mobile gambling experience for users of...

Union Budget 2025: Medical Education Seats Increased by 130% in 10 Years; 10,000 More to Be Added

Education sector Budget LIVE: Presenting the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced...

Union Budget 2025: Kisan Credit Card Loan Limit Increased to ₹5 Lakh Under Modified Interest Subvention Scheme

Finance Minister Nirmala Sitharaman, in her Union Budget 2025-26 speech, announced an increase in...

Union Budget 2025 LIVE: FM Sitharaman Announces Reforms in Finance Sector; Increases FDI Limit to 100%

Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2025-26 in Parliament today,...

Union Budget LIVE: Finance Minsiter Nirmala Sitharaman Tables India’s Budget for 2025-26

LIVE Union Budget Coverage: The Union Budget 2025, set to be presented by Finance...

Union Budget 2025-26: MSME Leaders Back Investment Limit Hike, Call E-Shram Expansion Crucial

The MSME sector has responded positively to the Union Budget 2025-26, with experts highlighting...

Gaming Industry Eyes Budget 2025 for Relief on GST and Boosted AVGC Support

With the Union Budget just days away, the gaming sector is growing hopeful that...

Budget 2025: Tax Reforms, Infrastructure Financing, and NBFC Support Top Budget Wishlist

As Budget 2025 approaches, experts from the NBFC, finance, and business sectors are voicing...

Adoption of Low Code Platforms by MSMEs for Operational Efficiency of Their Supply Chains

Micro, small, and medium enterprises are the backbone of the world and account for...