THE FUTURE OF INDIAN INVESTMENT ADVISORY FIRMS – A COST EFFICIENCY APPROACH
Abstract
The Indian financial services industry is witnessing a drastic change with Zerodha, operating in technologically advanced platform and other players striving to generate revenue of their old business model. The idea behind zero brokerage and seamless customer services is seen to be disruptive in nature. The cost of operations in the advisory firm varies as market players increase the advisory team in case of a market rally and downsize on the other hand with a fall in the market to cut cost and to remain afloat. The cost of operations in the investment advisory and broking industry is largely based on the research ideas and the manpower to handle clients at the same time. In this context the research was aimed at the cost management practices in the Indian firms. The data was collected through secondary sources, and the tools for the analysis would be efficiency analysis using stochastic frontier analysis. The findings highlight the fact that integrated players are well off in terms of turnover compared to single service providers and the industry views of introduction of block chains would further reduce cost and enhance efficiency in operations.
Keywords:
Cost Efficiency, Labor Productivity, Stochastic Frontier, Panel DataDownloads
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