Digital Transformation in Bangladesh’s Capital Markets - Jul'20

While technology continues to transform capital markets globally, Bangladesh has so far largely been left behind.

The COVID crisis may act as a catalyst for change. The DSE and CSE were the only equity markets in the world to remain closed from Mid-March to June 2020 during the COVID crisis as a result of the absence of an effective online trading platform.

We also believe the new BSEC Chairman and Commissioners are committed to supporting and encouraging this technology revolution in capital markets.

With the engagement of all stakeholders in tech transformation, Bangladesh can realistically target 5 million new online investors within the next 5 years.

In this report, we discuss the strategic roadmap for technology adoption in the capital markets ,including a proposed trading system for Bangladesh.

We focus on the remarkable growth of China’s online trading ecosystem, the largest in the world with 160 million investors and raw lessons for BD.

We also summarize some of the recent research on how new technologies such as AI and Big Data are disrupting capital markets globally.

Finally, we discuss how Stock exchanges themselves are using technology to improve regulatory supervision, governance and market credibility. Also, to bring new high-quality companies to the market and how new technologies such as blockchain can create new innovative financing platforms.