From November 20 to 22, Bursa Malaysia Berhad, in partnership with CGS-CIMB Securities Sdn Bhd, will host the inaugural event of the InvestHack hackathon.
Theme “InvestHack: Reimagine Investing”, its objective is to develop innovative solutions and offers that can improve the participation of retail investors in the market.
Dictionary time: A retail investor, also known as an individual investor, is a retail investor who buys and sells securities, mutual funds or exchange-traded funds (ETFs) through traditional brokerage firms or online or through ‘other types of investment accounts. Retail investors buy securities for their own personal account and often trade considerably smaller amounts than institutional investors like pensions, endowments or mutual funds.
The Malaysia Digital Economy Corporation (MDEC) and the Malaysian Global Innovation & Creative Center (MaGIC) are supporting the competition.
InvestHack offers free registrations for those who qualify, and the top 3 winning teams will get a total cash prize of RM35,000, but more on that later.
Of course we have existing retail investment solutions
“In Malaysia, most brokers offer online trading platforms and solutions to their respective clients. This includes StashAway, MyTheo, Wahed Invest and Invesk by Kenanga, to name a few, ”a representative from Bursa Malaysia told Vulcan Post.
Investors have much more control over their investments by directly supervising and trading their portfolio, which is more efficient, convenient and cost effective.
However, Bursa Malaysia believes that it is necessary to ensure that investors are well informed and have access to relevant and relevant market information.
Their broker partners have made it available to their clients through research reports, analysis, market information, educational conferences and webinars.
During the exchange, several initiatives to do the same were taken through its platforms such as Bursa Marketplace, Bursa Academy and Mirror, Learn & Trade (MLT).
… But here are the remaining problems
“The solutions currently available for the local market are essentially transactional. They are still not for investors who want to learn how to participate in the market, ”said the representative.
“The questions about ‘how’, ‘where’ and ‘what’ to buy are the most frequently asked questions. The equity market has also always been viewed as risky. “
However, with the right analysis and investment plans, this is often not the case.
Investors also want access to easily understandable platforms, which Bursa Malaysia says is still lacking in the market.
“Another area that we believe needs to be addressed immediately is making equity investments more affordable for everyone.”
Promotional content and hype from celebrities and unlicensed people are also no strangers to the market, and investors should be wary of them, as the herd mentality always rocks the public when making business decisions. investment.
“Deceptive promises of quick wins and returns can often lead to bad decisions made by investors,” the representative explained.
“It’s not uncommon to learn that investors are left vulnerable in the stock market because of their influence in this way.”
Once investors find themselves losing money, they eventually get discouraged and leave the stock market altogether.
Figures prove retail investment is on the rise
During the AGC, retail trade recorded its highest level in 10 years.
In October 2020, the Average Daily Value (ADV) traded by retail investors was RM 1.35 billion. This represents an increase of 214% from 2019 and an increase of 260% from the ADV recorded over the past ten years.
In addition, in October 2020, Bursa Malaysia registered a total of 347,000 new accounts opened in the Central Depository System (CDS).
This is an increase of 118% over the total accounts opened for the full year of 2019, which means a shift towards investing in the stock market.
“Given these developments in the retail investment scene, we are taking the initiative to engage the fintech community as innovative disruptors to strengthen the retail investor base,” said the representative of Bursa Malaysia .
“The active participation of retail investors is essential for a vibrant securities market. It improves liquidity as well as its depth. “
InvestHack is just one of those activities that Bursa Malaysia has up its sleeve to ensure the long term sustainability of our market.
Now here’s what the event is about to do.
Challenges to overcome
In total, teams can choose from 4 challenges to complete them.
Challenge 1: Attract more Malaysian retail investors to share their investments in the stock market.
As of June 30, 2020, Malaysia’s employed population was estimated at 14.99 million (~ 45.8% of our total population). About 7.6% of these people invest in Malaysian stocks. How to increase retail investor participation in Malaysian stocks?
Challenge 2: Improve the financial literacy of Malaysian retail investors.
1 in 3 Malaysians consider themselves to have poor financial literacy. Bursa Malaysia has made efforts to educate Malaysians through online platforms such as BursaMKTPLC, MLT and Bursa Academy. But how can the financial literacy of Malaysians be further improved?
Challenge 3: Help Malaysian retail investors overcome herd behavior when investing in the stock market.
The need for quick decision making when important information on trading screens can put retailers in a vulnerable position to follow the herd to feel secure. How can we help Malaysians make informed financial decisions quickly?
Challenge 4: Answer the frequently asked question: “Do you have any advice on stocks?”.
Who can join?
You can join InvestHack as long as you are:
- 18 years old and over,
- A Malaysian or non-Malaysian with a valid Malaysian work / student permit.
This is a team competition, so you will need a minimum of 3 to a maximum of 5 members, with at least 1 coder.
What prizes can I get to win?
Among the 3 winners:
- The champion will win 20,000 RM and a trophy,
- The first finalist will win RM 10,000 and a trophy,
- The second runner-up will win RM 5,000 and a trophy.
All winning solutions have a chance to collaborate with Bursa Malaysia or CGS-CIMB to launch their solution in the capital market.
To join, you will need to register before or before November 15, 2020. You can do so here.
On November 16, you will receive a Starter Kit during the Virtual Pre-Hack Briefing Session.
Once the virtual hackathon ends at 12 p.m. on November 22, the announcement of the semi-finalists will take place on November 26.
The semi-finals will take place on November 28.
The grand finale will take place on December 5, 2020.
While most of the event can be virtual, the grand finale can take place at Bursa Malaysia’s headquarters in KL, but it will be subject to government SOPs if necessary and can also go virtual.
- You can read more about InvestHack here and Bursa Malaysia here.
- You can read more articles on investing here.
Featured Image Credit: Datuk Muhamad Umar Swift, CEO of Bursa Malaysia Berhad
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