Shiv Kumar Bhasin, chief technology and operations officer, NSE

India’s biggest bourse, the National Stock Exchange (NSE) is looking for fintechs to help develop a simpler interface for traders, hoping to attract wider retail participation.

“As of now, only 2-3% of the country’s population participates in capital market trading. We want to democratize it. The number can be higher if fintechs work in this area too,” said Shiv Kumar Bhasin, chief technology and operations officer, NSE. “Currently, trading is member-driven in India, which means banks have their own front-end. We want to work with fintechs but we’re seeing limited participation from them in capital markets area.”

The Mumbai-based stock exchange, that handles millions of trades in a day, wants fintechs to help develop a single trading interface with a user-friendly front-end for various asset classes.

The NSE also aims to simplify its existing APIs and make them more accessible. “As of now, the APIs we’ve exposed are being consumed by large members. So, they are very technical unlike banking APIs,” said Bhasin. He added that the bourse will simplify its APIs in the coming months, to encourage fintech participation.

“We are open to working with fintechs in the capital market area. If the idea is unique, we may even look at investing in them. So, we have both options,” Bhasin told IBS Intelligence.

Apart from the trading platform, NSE is also looking for fintech collaboration in areas like back office automation with RPA and AI. “We want to see if we can make our trade operations more efficient, like surveillance and fraud detection. So, we are looking at differentiated offerings from fintechs in these areas as well,” he said.

NSE is also interested in data monetisation. “One of the key gaps, that fintech can help overcome, is data monetisation. Usually, there is more participation with banks and not with exchanges. So, we want to open that area also,” he said.

The 25-year old stock exchange follows a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. It also oversees compliance by trading and clearing members and listed companies with the rules and regulations of the exchange.

by Parnika Sokhi
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