The PayBito chief picked holes across prevalent exchange broker platforms, stressing the need for innovation and proposing a solution through Brokerage as a Service (BaaS)
PayBito CEO Raj Chowdhury criticized the usage of cumbersome and expensive broker models in prominent global exchanges. The backdated platforms prevent newcomers from quick enlistment. In addition, these exchanges fail to integrate cloud and other technological innovations. This results in a regressive environment that restricts ‘financial democratization’.
Hauling Brokerage Drawbacks in the Internet Age:
The internet accelerated the evolution of consumer services. It became a key contributor to cloud adoption and afterward SaaS development. But, the innovations have not appeared even on the biggest exchanges, posing many challenges. Some of them include:
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Financial Exclusion
Brokerage membership across the biggest global exchanges are exclusive to large financial institutions. An aspiring intermediary must work under these organizations and continue association. The platforms lack the architecture to set up a registered individual brokerage business.
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Cloud Aversion
Several exchanges feature brokerage service platforms lacking cloud integration. Entrepreneurs need to integrate technical components and host servers for effective brokerage services. The entire on-premise process is more complex than it needs to be.
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Cost and Time Limitations
The least time for starting a brokerage firm across exchanges like NASDAQ is 6 months. The process is expensive and intricate, with membership charges ranging from $5,000 to $500,000. The platform also restricts retail brokers through eligibility and trading constraints.
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Non-availability of White Label Solutions
The commonly used on-premises software does not feature customization or white-label solutions. This is a setback for brokers keen to establish their own brand.
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Non-Involvement in Social Causes
Major global exchanges are aiming for growth through diversification with plans of tech divers objectives. They focus on profits, not societal or environmental contribution.
Disruption Through Democratization:
Chowdhury mentions, “Financial inclusion is possible only through the democratization of trading access. Change is inevitable, and brokerage is next.”
The PayBito chief puts forward a call to redesign the concept of brokerage solutions altogether. New-age platforms can succeed in addressing prevalent drawbacks through technology, and deliver unmatched experience. He put the spotlight of the following key areas:
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Financial Inclusion
Exchanges must bring forward an evolution in accessibility. Participants using the PayBito broker platform can complete registration within 3 minutes. They can also provide intermediary service offerings for separate trading options.
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Cloud Integration through BaaS Innovation
Exchanges can offer instant brokerage access to anyone with cloud technology. Brokerage as a Service (BaaS), a key feature of PayBito’s broker platform, comprises cloud integration. This revolutionizes the concept of intermediation altogether, making it feasible in the retail segment.
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Affordable and Scalable
Cost-effective and hassle-free solutions are ideal for the internet age. Monthly subscription charges for platforms like PayBito are a nominal $49.99. There is no need for host servers, coding, or integration. It also provides advanced trading options including high frequency algo trading.
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White Label Solutions Accelerate Business
Enterprises need white label products to establish their own business. Platforms can deliver top-class solutions for easy instant access to a self-branded exchange. Paybito provides scope for further customization as well.
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Brokering World Hunger Away
Intermediaries contribute to social causes by earning higher commission in the Brokering World Hunger Away campaign. The exchange can match their commission, and use raised funds to feed starving children worldwide. The process is sustainable as it does not deduct any commission.
Forging Economic Stability Through Equal Opportunity:
Global exchanges have fallen back on broker-oriented transformation. This leads to a disparity between existing intermediaries, and restricts newcomers. “Democratizing brokerage access for all” is the next step in brokerage model disruption. Platforms championing social contribution can revert to technological innovations for better efficiency. It leads the charge towards a more balanced and sustainable future.
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