Online brokerage company Zerodha will soon launch Kite Publisher, a service that it says will open up investment and trading to the masses and offer new revenue streams for financial content publishers.
The Bangalore-based company has previously announced various offerings, such as zero brokerage for cash trades, Rs 20 flat for F&O and equity intraday trades, and multilingual trading platforms supporting up to eight Indian languages.
Kite is designed for people with, say, a financial blog with analysis on various companies. If a site visitor is impressed with a particular company and wants to invest in it, he can click on a link. This will redirect him to Zerodha’s Kite ecosystem and will help him buy the company shares.
“Building Zerodha’s ecosystem was a lot of hard work, and now we want to open this up to others. We converted Zerodha’s entire broking system into a set of APIs so that anyone can use Zerodha as a backbone,” said Dr Kailash Nadh, chief technology officer at Zerodha.
Nadh claims that this is the first time that such an innovation is done in the online broking sector across the globe.
Since the sector is very niche, the scope for innovation is plentiful, but only a handful of players are ready to take up this challenge. According to Nadh, the reason for this is the presence of strict compliances and bureaucratic regulations, making it difficult for disruption.
“Entry to the broking industry is extremely hard, which is why you don’t hear any fancy broking technology. Because of this, the whole space is quite stagnant,” he concluded.