HDFC securities Ltd. has announced the launch of a “Brokerage as a Service” (BaaS), allowing partners to seamlessly integrate HDFC securities’ trading platform, HDFC SKY, into their applications and websites, offering clients comprehensive trading capabilities.
Through its BaaS solution, the Mumbai-based brokerage industry giant provides a versatile and profitable approach for institutions and fintech companies to enhance their service offerings and generate additional revenue streams.
No need to develop a trading platform from scratch
HDFC’s trading platform will allow broker partners to deliver a seamless and powerful trading experience to their clients without needing to develop them from scratch. HDFC securities offers two main integration options for BaaS:
- SDK Integration, which is available for both Android and iOS platforms, enabling partners to embed the HDFC SKY SDK into their mobile applications, providing users with a complete onboarding journey and trading functionalities.
- Open API Integration, which allows partners to integrate HDFC SKY APIs into their websites or mobile platforms, enabling seamless order placement and management.
Sandeep Bhardwaj, Chief Operating & Digital Office at HDFC securities Ltd., said: “Innovation and client-centric solutions are at the core of HDFC securities’ mission. With Brokerage as a Service, we are offering institutions and fintech companies a unique opportunity to integrate our advanced trading platform, HDFC SKY, into their own ecosystems seamlessly. This initiative underscores our commitment to empowering our partners with the tools and capabilities to enhance their service offerings and drive revenue growth.”
Revenue Sharing vs Usage Fee vs Hybrid Model
HDFC securities’s flexible business models for broker partner include:
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- Brokerage Revenue Sharing Model, where partners earn a share of the brokerage revenue;
- Platform Usage Fee Model, allowing partners to charge customers for using their platform without involving brokerage sharing;
- Hybrid Model, combining platform usage fees and brokerage revenue sharing; and the Referral Only Model, ideal for online media publications focusing on user referrals.
The customization process for BaaS involves several steps: initial consultation and agreement, technical integration preparation, integration and development, compliance and security checks, and user acceptance testing (UAT).
Institutions benefit from BaaS by enhancing their service offerings, generating new revenue streams, and attracting and retaining clients. It allows institutions to offer their clients access to HDFC SKY, a comprehensive trading platform with advanced features.
Institutions can earn a share of brokerage fees or monetize their platforms by charging platform usage fees. Offering a sophisticated trading platform can attract more clients and increase client engagement, boosting client acquisition and retention.
HDFC SKY, the firm’s discount broking app
Earlier this year, HDFC announced successful client onboarding onto HDFC Sky, a multi-asset brokerage app launched in September 2023. In January 2024 alone, HDFC SKY welcomed over 100,000 new customers to reach a total of more than 300,000 users in early February.
HDFC SKY is a comprehensive platform for various investment options like FX, equities, mutual funds, and global investing. It offers a range of services, including investment and stock recommendations, proprietary research, and a margin trading facility. The app is tailored to assist investors and traders at all skill levels in engaging effectively with the financial markets to achieve their financial goals.
It provides access to a wide array of investment and trading options, covering Indian stocks, ETFs, mutual funds, futures, options, currencies, commodities, IPOs, and global equities, all through a single fintech platform. The app’s users are diverse, spanning Tier-1, Tier-2, and Tier-3 cities.
