After on-the-spot credit card buys, now there is now on-the-spot broking account that has become available to consumers. A ‘ready-to-trade' kit has been launched by Kotak Securities. Called ‘MyBox', it will be available off the shelf at bookstores and supermarkets.
The box consists of a CD, user id and password for registration, guide, security key and an account activation card.
Brokerages are thinking of innovative business strategies to expand client base in these uncertain times. Claiming this to be a game-changer in the industry and first of its kind in India, Mr B. Gopkumar, Executive Vice-President and Head of Broking, Kotak Securities, said, “This product is aimed at encouraging customer convenience through various distribution channels. At present, the product is available at 10 Crossword stores in Mumbai. It will soon be available across 24 stores.”
The product will also be available in the supermarkets in the next 15 days.
“We are in an advanced stage of talks with leading e-commerce sites, so customers can buy the product online too,” said Mr Gopkumar. The entire kit costs Rs 750 and once the software is installed, representatives of Kotak Securities will approach the customer for KYC formalities.
“The target audience for this product is people in the age group of 25 to 40. We hope to open around 2,000 accounts a month,” said Mr Gopkumar. The brokerage has over 12 lakh clients at present.
As per ICRA estimates (based on segment wise market volumes and segment wise average yields of the industry adjusted for the proprietary volumes), the overall revenue pool of the equity broking industry grew by only 13 per cent to around Rs 13,000 crore for FY-11 as compared to the 46 per cent growth in exchange trading volumes. Unless, there is a material pick up in cash volumes and increased activity from of retail investors, the industry revenue pool is likely to grow at a moderate pace.