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Group CEO of Nigerian Exchange Group Plc, Mr. Oscar Onyema, said during his speech at the maiden edition of Retail Investors’ webinar facilitated by the NSE last year that the Exchange is focused on facilitating dialogues that will expound on the retail investment opportunities available in the capital market.
For the first time in years, domestic investors, in 2020, consistently outperformed their foreign counterparts in market transactions and participation. For instance, in November 2020, NSE data showed that local investors outperformed foreign investors by over 58 per cent in total transaction value. We have seen this trend continue even at the beginning of the year 2021 with higher participation from local investors versus foreign investors. We do not think this momentum will wane. One way in which we can sustain this move is what InfoWARE have provided to Stockbrokers via the IDIA Mobile App which will, in no small measure, facilitate easier trading in the retail space.
The increasing complexity of picking which assets to own has put both professionals especially beginners under pressure in the global capital market. It has plunged the concept of sustainable investing into the beginning of a backlash. Retail investors have their feet of clay. Many low net worth retail investors (the Gen Z), especially in the emerging markets have no investment objectives just as they lack basic knowledge of risk tolerance.
Last year, retail investors alone contributed 29 percent to equity transactions, on the Nigerian Exchange Limited (NGX). Participation of retail investors is on a sustained upswing as technology has further democratized trading processes, making the market more appealing to millennials.
For us, retail customers are a core part of the stockbroking business and in line with this belief, InfoWARE have invested heavily in technology to make the market more accessible to these categories of investors in a simplified method. As a testament, we launched the IDIA Mobile App in November 2021 to facilitate easier access to trade and we continuously seek ways in which we can help our partners achieve their revenue goals. We believe that retail investors hold a major key to growing the Nigerian capital market.
We envisage for brokers to play more in the retail space and get equal shares with the big sharks in the capital market. For the brokers who leveraged first mover advantage by joining IDIA platform are smiling today as they have witnessed increase in their transaction volumes. Very soon, we quantify the worth and share the numbers with you in our newsletter series.
Its’ not too late to onboard today as a broker or as a Fintech. Lets’ talk on how you can get your share in the retail market.
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