HDFC Securities Launches BaaS Solution To Offer Trading Services To Clients' Customers

HDFC Securities Ltd. today launched HDFC FinX, a brokerage-as-a-service solution for banks, non-banks, fintechs and corporates to help them offer brokerage and other trading solutions to their clients.

The BaaS solution will integrate the HDFC Securities trading application, 'HDFC SKY', with clients' core applications and websites to offer trading solutions to the latter's customers.

"By integrating a robust trading platform, partners can deliver a seamless and powerful trading experience to their clients without needing to develop from scratch', the company mentioned in a press release.

The brokerage services will be integrated into the clients' core business applications or websites through application programming interfaces (APIs) and software development kits (SDKs), according to Chief Operating and Digital Officer at HDFC Securities, Sandeep Bhardwaj.

"Our objective is to take brokerage services to every institution and give such services to their customer base, and also them(institutions) improving longevity of customers for their own products, Bhardwaj told NDTV Profit.

The company has designed several business models for providing this solution. These include the brokerage revenue sharing model, which allows partners to charge customers for using their platform without involving brokerage sharing.

This is followed by the hybrid model, which combines platform usage fees and brokerage revenue sharing. The third model is the referral-only model, which, according to the company, is "ideal for online media publications focussing on user referrals."

According to the company, HDFC FinX will also open new revenue opportunities through flexible business models. However, Bhardwaj did not comment on revenue targets or investments that went into the development of this new solution.

Developed for both business-to-business and business-to-customer institutions, the brokerage solutions are available on both iOS and Android through HDFC SKY.

We are going to take such services to all potential organisations and will take the product; however, awareness about the product is a key headwind to overcome," said Bhardwaj. He added that currently, all regulatory approvals are in place to take the service forward and will comply with all regulations as and when needed.