In this blog, you will learn about the Impact of Technology on Sub Brokership in India.
Technology has entered the stock market for quite some time now, and it has a different impact on different members of the stock market.
In this article, we will discuss technology’s impact on the business of Sub Brokers who play an important role in the market.
To understand the scenario better, this piece will evaluate whether technology has done good to the Sub Broker’s business or harmed you.
Impact of Technology on Sub Brokership
First and foremost, let’s see whether and how technology has impacted Sub Brokership business. To understand this, we can evaluate each of the Sub Broker’s services, such as –
With the high-end technology stock brokers use, Sub Brokers can easily acquire clients at home.
For instance, there is no need for the Sub Brokers to visit every prospective client to get business from them.
Sub Brokers can meet over different online platforms like zoom and google meet and others to connect with the clients and pitch to them.
This also solved the issue of time management, which was a major constraint for the Sub Brokers earlier.
Now, at any given time, if the prospective client and the Sub Broker have smartphones with internet connections, they can only get on a call and discuss investments and other queries.
So, technology has been helping Sub Brokers to gain more clients in a shorter timeframe.
The next vital role of a Sub Broker is client activation. As you may know, only 40% of the clients who open an account with a Sub Broker start trading independently, and the remaining 60% need some or all kinds of assistance to get started.
Earlier, it used to be hectic for the Sub Brokers to activate the clients they had acquired, as assisting them all was a huge task.
Moreover, big office spaces were required to provide trading and dealing services and other facilities to the clients for activating and running their trading activities.
However, with the inclusion of technology in the trading and investment arena, now Sub Brokers can easily help new clients start trading.
Sub Brokers can now conduct training sessions online to assist clients in starting trading and investments.
Then Sub Brokers can also follow up multiple times if the client has opened an account but not trading. Earlier, following up meant meeting them in person, which was time-consuming and hectic.
Moreover, with the advanced technology, the Sub Brokers can look at the steps of the account opening procedure the client is on and assist them in the same as well.
Finally, the third leg of the Sub Broker’s business is client servicing which the technology disruption has mainly impacted. Client servicing has become easiest with high-end technology.
With the partner portal that Sub Brokers get or the back-office management software, they can track all the trading deals and commissions of the clients.
If clients back off, they can easily know and offer better facilities to retain them. With technology, it is also easy to keep in touch with clients, know their issues, and solve them quickly.
Moreover, with the help of trading terminals and mobile trading applications, clients can trade anywhere and from any part of the world, which also benefits the Sub Brokers in generating business and commission.
As mentioned above, technology has bettered how Sub Brokers function and thus bettered the client relationship.
The clients can now connect with the Sub Brokers with a simple click on their mobile phones and get their issues sorted in a few minutes.
Prompt services have been possible because of the inclusion of new technologies in the stock market.
So, technological intervention in the stock market has positively impacted the three primary roles of a Sub Broker.
But what about the commissions and profitability? Has it increased as well or not?
Similar Topics on Sub Broker
Has the Profitability of Sub Brokers Increased?
Since all the stock brokers are adopting technology, and traders and investors are becoming self-reliant with their trading and investment needs, the percentage of commission charged by the stock brokers has come down, and one of the best examples can be the discount brokers who charge very nominal fees for their services.
This has impacted the Sub Broker’s commission, too; however, due to technology, the number of investors and traders has been increasing, adding to the Sub Broker profits.
Then there are programs like refer and earn and others that help the Sub Brokers grow their business. These are also dependent on the mobile applications run using the technology.
Impact of Technology on Stock Broker and Sub Broker Relationship
The relationship between Sub Brokers and the stock broker has also improved, with technology playing its role.
With the help of technology, now main stock brokers can train the Sub Brokers at any time.
There are even recorded videos from which the Sub Brokers can learn about new products and services launched by the main brokerage house.
Then partner portal or the platform that a stock broker offers to its Sub Broker gives access to the details of the brokerage generated by the clients, and thus the Sub Broker can keep a check on his commission earnings all the time.
Digital Marketing Support
Then comes the benefits of digital marketing, where the stock broker provides full support for promoting their Sub Brokers.
With the help of technology, you can reach many people without physically putting any effort into it.
This makes the business grow for both the Sub Broker and the main broker, thus strengthening the relationship.
To reach out to more people and have attention, stock brokers used to conduct seminars for ages.
However, now these seminars have gone online and become webinars, and the Sub Brokers can benefit by inviting their clients and prospects to these webinars.
Check out these amazing Sub Broker Partner Businesses
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Impact of Technology on Sub Brokership – Conclusion
So, all in all, technology has made the stock market evolve, and the Sub Brokers too. It has given the Sub Brokers the tools to reach more people and grow their businesses.