Technology has been the cornerstone of innovation in financial markets, making them more efficient and transparent. More importantly, it has spurred investor participation and demystified investing.

For Bursa Malaysia, technology has been instrumental in bolstering its digitalisation capabilities and widening the breadth and depth of its services, according to Datuk Muhamad Umar Swift, CEO of the stock exchange.

“Digital technology has allowed us to disseminate information more effectively to a broader and more diverse section of the public. Bursa Marketplace  a comprehensive portal that grants access to a host of tools, games, research, information, videos and more  is essentially a comprehensive investor platform with content that aims to demystify share investment,” he says. 

“Bursa Academy, for example, seeks to provide continuous and holistic learning that caters to investors’ different needs, expertise and skill levels. Another example is Mirror, Learn & Trade (MLT), which helps investors and potential investors learn and understand strategy from a community of analysts. The MLT platform was designed to provide information in bite-sized content, similar to general content available in the digital world.”

Both Bursa Academy and MLT are available on the Bursa Marketplace platform. These and various other offerings that leverage digital touchpoints have contributed to an increase in retail participation.

According to Bursa Malaysia as at July this year, average daily value stood at RM1,071.4 million, a 157% increase compared with 2019. The number of Central Depository System (CDS) accounts opened has doubled versus the same period last year.

“In a dynamic market, Bursa Malaysia recognises that investor needs are continuously changing. Innovation in capital markets is no longer an option but an absolute imperative for long-term sustainability. 

“We need to continue evolving  providing more convenience, opening new channels of access and providing compelling products to sustain the interest of investors. Above all, the exchange understands that it is crucial for investors to be informed, as that will protect them,” Datuk Umar says.

Bursa Anywhere is a mobile app that allows investors to manage multiple CDS accounts on one platform. Investors are now relying on remote methods for safety and convenience, given the new normal. The new features on Bursa Anywhere app significantly simplify the investment experience.

“Users with multiple CDS accounts can now easily access all their account information through one app. With features such as Share Transfers, investors can also conveniently transfer shares without having to fill up forms or leave their home,” said Datuk Umar. 

CDS Account Reactivation via Bursa Anywhere is yet another service that offers convenience. Launched end-June, Bursa Anywhere’s latest feature, CDS Account Opening resulted in over 19,000 CDS Account Opening applications.

Sixty-four per cent of the accounts opened were by millennials aged 25 to 40, leading the bourse to believe that its retail investor outreach initiatives has led to the active retail participation in the equity market, in addition to partnering with brokers which has strengthened investor confidence in the marketplace.

While the increased participation of retail investors is a significant development, equally noteworthy is the evolving mindset of the digitally savvy retail investor.

“Since its launch, Bursa Anywhere continuously garners new users with every new upgrade. Aside to CDS Reactivation, other new features such as CDS Account Opening and eDividend registration services have propelled downloads of the app in recent months. The app currently has more than 97,000 users and the number is increasing. With the new upcoming features, users will not only be able to manage their accounts from anywhere but also have access to other capital market transactions,” says Datuk Umar. 

The MLT platform uses the concept of mirror or copy trading to help investors understand how experienced analysts make “buy” or “sell” decisions for specific stocks. It is the first-of-its-kind virtual education platform in collaboration with some of the country’s leading analysts.

“The aim of the platform is to provide an environment that enables both potential and current investors to learn and acquire investment knowledge as well as strategies by giving them direct access to these research analysts. This is in addition to the numerous tools and interactive games that are available on Bursa Marketplace,” Datuk Umar says.

“By using the MLT platform, Malaysians can simulate the experience of trading, practise investing at their own pace, monitor their learning through progress charts and, most importantly, interact with analysts to get insights about investment strategies. The platform now hosts 13 analysts and has new features such as stock highlights. In short, MLT is an all-encompassing virtual trading platform that investors can fully engage with.”

Bursa Academy was launched in June to reach the more technologically savvy investors. Designed as a comprehensive one-stop e-learning portal, Bursa Academy combines both knowledge sessions and interactive gamification through a simple and user-friendly platform. Its primary focus is to encourage informed investing, with the guiding principle that anyone should be able to learn at their own pace and access content from anywhere, at any time. 

Bursa Academy is a centre of excellence for information covering the securities market, derivatives market and Islamic capital market. It is an e-learning portal in English and Bahasa Malaysia, and can be accessed anywhere, anytime which is popular with the millennials.

Added Datuk Umar, “Bursa Academy is designed to further strengthen the education initiatives of the exchange as part of its effort to build a financially literate nation. The digital content is tiered to cater to investors at all levels. The platform aims to capitalise on technology to engage, educate and empower individuals in becoming a savvier investor.” 

The introduction of platforms such as MLT and Bursa Academy has contributed to an increase in the number of younger investors in the capital market. Direct CDS accounts grew 73.6% so far this year versus a year earlier. 

“We believe that this, together with other digital initiatives, has led to 64% of new investors being in the millennial age group.”

The exchange plans to continue active introduction of new initiatives and products that will broaden the depth, vibrancy and growth of the capital market. Initiatives such as trading-based support to broker partners, and new features such as eIPOs on Bursa Anywhere are being planned.

“Supporting our broker partners in their trading systems is also paramount with 74% of trades being conducted online  an increase of five percentage points compared with 2019,” says Datuk Umar.

In ensuring the exchange keeps abreast of trends in emerging technologies, Bursa Malaysia recently embarked on a bond on blockchain proof-of-concept to explore the opportunities afforded by blockchain technology and the tokenisation of assets. 

Bursa Malaysia is also part of the Brokerage Industry Digitisation Group (BRIDGe), an initiative by the Securities Commission to bring together industry stakeholders and policymakers to accelerate the digitisation of the broking industry.

“With these kinds of strategic partnerships, we gain valuable learning experience to build knowledge that can ultimately improve the effectiveness and accessibility of the exchange,” says Datuk Umar. “The group is committed to delivering a seamless experience that spans the investing experience. This is an essential step in ensuring digitisation reaches end-to-end and penetrates every corner of the ecosystem.”