Fintech to boost stocks | The Daily Star
12:00 AM, November 12, 2019 / LAST MODIFIED: 12:22 AM, November 12, 2019

Fintech to boost stocks

Experts say; China tech firm offers services

A lack of financial technology or fintech, well-rounded governance and securities with good track records is to blame for the very minimum participation of people in Bangladesh’s stock market compared to peer countries, say specialists.

“Only 1.8 percent of people in Bangladesh are investing in stocks, assuming that there are 30 lakh investors, which is much low among Asian countries,” said Xueyun Li, manager of Shenzhen Kingdom Sci-Tech. 

Of the 250 brokers of Dhaka Stock Exchange (DSE), only a few provide online trading facilities to clients while 90 percent of trading orders are placed in writing and through phone, leaving scope for mistakes and problems, she said.

“Fintech regarding the analysis of stocks is also rare. So fintech is necessary to attract investors,” said Li while delivering a presentation at Kingdom China Capital Market Conference at Hilton Shenzhen Shekou Nanhai in China on Friday.

Fintech includes new technologies, such as specialised software and algorithms, used on computers and increasingly on smartphones that improve and automate service delivery.

Addressing the event, Prof Abul Hashem, the DSE chairman, said Bangladesh’s stock market offered immense potential as a large number of people were yet to join it. “To bring them…we are putting emphasis on technology,” he said.  Xu Minbo, executive president of Shenzhen Kingdom Sci-Tech, which caters to brokers of the DSE’s strategic partners, the Shenzhen and Shanghai stock exchanges, expressed his keenness about Bangladesh.

They can provide successful technologies and share knowledge on developing the financial and ICT sectors, he said, adding that fintech would increase people’s participation in investment and trade. 

“We are keen to enter Bangladesh to build the country’s financial infrastructure. It can be a joint venture,” he added.

Ifty Islam, chairman of Asian Tiger Capital Partners, stressed the need for multi-purpose fintech products to take the economy to the next level.“Fintech can provide more services for users and yield more profits for businesses,” he said. Minhaz Mannan Emon, a DSE director, said the world’s technology was fast evolving but “we are far away”. 

Daily turnover at Shenzhen Stock Exchange reaches billions of renminbi whereas the DSE barely makes it to Tk 500 crore, he pointed out.

 

 

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