Technology has become an inseparable part of daily life. You can’t take a step without those gadgets and appliances. And the impact of technology has revolutionised the financial sector. Stock market investment tools, such as the demat account, have gone through radical changes due to technological advancement.
In 2014, the Securities and Exchange Board of India (SEBI) discontinued physical trading of securities. It introduced dematerialisation (demat) accounts to India. Having a demat account has become mandatory for investors since then.
The impact of technology on share trading operations and the demat account has been tremendous. Here are some ways in which technology has influenced how users experience demat accounts today.
- Better dematerialisation of stocks
Conversion of physical stocks into electronic ones is called dematerialisation. This allows for safe and convenient holding of stocks. The demat account holds stocks in the digital format. With future technological developments, things should become even easier.
- Cost-effectiveness of financial processes
With ongoing innovations, financial transactions through demat accounts will be quicker and more effective. Costs are likely to come down as many of the processes are automated and carried out online.
- Enhanced security of funds and stocks
Demat accounts can be monitored very easily. There are also multiple message and other transaction alert options. These increase the security quotient of such accounts. Transactions are carried out through secure channels and using the latest in tech. With forthcoming technology, your stocks could be more secure in future.
- Less paperwork
Paperwork has already reduced with the introduction of the demat account. The only major paperwork process now takes place when you open a demat account. Once the account opening process is complete, all transactions happen digitally. It is likely that the entire process will be paperless in future.
- More convenient transactions
You can access your account through multiple platforms—such as your smartphone, your laptop or desktop, or a tablet device. When you hold a demat account with a depository participant like Kotak Securities, you also gain access to research reports, regular stock recommendations, and market analysis.
- Increased geographical accessibility
Along with logging in through any media, you can also log in from any part of the world. This is possible only because the stocks are stored in the electronic format. In today’s high-speed business world, this is a big benefit.
- Access through multiple channels
When you open a demat account with a reputed financial institution like Kotak Securities, you also benefit from its technology solutions. For instance, users can access their portfolios and carry out trades through mobile apps, online software, and even mobile chat applications like WhatsApp.
Technology has helped the financial industry to grow in many ways. The stock market is only one of its beneficiaries. Technological advancement has completely changed the way people engage in stock trading. It can be safely said that this influence will continue to grow. As time progresses, so will technology. It will make transactions through the demat account smoother and even more convenient.