70% to 80% Active Clientele of Digital and Discount Brokers are below the Age of 30 Years: Report

IANS 29 November 2023

Investor Interest

Greater financial literacy, frictionless customer on-boarding and proliferating user-friendly digital platforms have led to a substantial jump in the number of young investors, accounting 70%–80% of active clientele of digital/discount brokers within the 18-30 years age group, according to Bain & Company’s latest study of the Indian Retail Brokerage market.

Similarly, 70%–75% of newly acquired customers for bank brokers are also below the age of 30, albeit with lower activation rates.

The industry also saw a leap in investor engagement from Tier 2+ cities, which now account for one-third of the cash turnover, the study said.

The Indian retail brokerage industry has witnessed remarkable growth, nearly doubling industry revenue from Rs14,000 crore in FY18-19 to Rs27,000 crore in FY22-23, representing a CAGR of approximately 17%.

This growth has been fueled by the emergence of India’s mass-affluent and affluent segments, coupled with increasing financial literacy.

The number of demat accounts has tripled since FY18-19, reaching an impressive tally of 115 million in FY22-23, thanks to the heightened interest sparked by the COVID-19 pandemic.

These are among the findings from Bain & Company’s latest study of the Indian Retail Brokerage market.

The COVID-19 pandemic served as a turning point for retail participation in capital markets, with digital-first players revolutionising the industry.

However, the industry’s average revenue per user (ARPU) decreased from around Rs6,000 in FY18-19 to Rs5,000 in FY22-23.

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