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Motilal Oswal

By Motilal Oswal 06-Oct-2010 | 16:50

The start of the internet age redefined ways of conducting financial transactions including broking. The last few years have seen online trading in India develop and grow into a mature business with products being developed continuously and volumes stabilize.

Internet penetration is low in India with 45 mn internet users, while there are 127 mn mobile users capable of accessing data services through their handset, implying a 3x high-end mobile penetration. Once mobile trading is available, new investors who are deprived of internet connections as well as existing investors who can’t trade through wired internet will enter the market. Though most users of mobile trading may initially attempt to use it to have information at their finger tips increasingly customers would start conducting business through this medium.

Increasing smart phone penetration and availability of internet browser as a basic feature in entry-level phones is increasing the base of subscribers who can access internet. As of 2QFY10, ~127m subscribers were capable of accessing data services through mobile handsets. Non-voice revenue mix of Indian wireless operators remains low at 10-11% v/s 25-30% for mature markets due to non-availability of 3G services. Thus as these services become operational, we assume data mix to increase to 20 to 25% by 2015. Apart from mobile applications, 3G services will also allow GSM operators to offer mobile broadband services, which is a fast-growing market and has significant potential given negligible fixed-broadband penetration in India. 3G spectrum will provide telcos the opportunity to offer real time trading as well as interactive & real time equity research based services thus leading to increased revenues through subscription based research services as well as increased data usage

For a customer who wishes to avail the facility it is recommended to carry out few pre-checks. User should ensure that the GPRS is enabled by the service provider and that the handset supports the application/ portal. It would be key to note that the strength of the net connection plays an important role in user experience especially during travel, though most mobile sites/application take due consideration of this aspect in design.

The variety of mobile phone devices and the technology associated in terms of operating system, browsers and even screen sizes are the challenges faced by brokers and their software development partners. Technologies are now progressing to obtaining the handset information and then proactively provide the user best view. Mobile trading is an extension of traditional online trading and works either by use of a browser or an application provided by the broker. The internet speed on mobiles is far less as compared to computers thus limiting the design and features as compared to a web version of online trading.

Security of transactions executed pose complicated challenges which are addressed by the guidelines laid down by the regulators. Use of encryption, secure socket level security and time based password expiry are some of key technological initiative to secure the end users information and transactions.

At MOSL we have launched our browser based mobile trading system. We are gearing up to manage increased customer activity in the mobile space. All key trading activity such as viewing market watch, reports (orders, trades, net position, margin etc), placing and modification of orders, access to live advice are available on mobile for MOSL online customers. Alongside our launch we are collecting customer feedback and expectations which we will roll into our product development cycle.

Our continuous efforts will ensure our customers get the right experience and enjoy their trading journey with us.