It finds stocks that are rising like Netflix… Toss Securities targeting the 20s and 30s, the differentiation strategy

“I ate bibigo dumplings yesterday evening, and I wondered if I could check them as stocks, and if I could buy stocks like e-commerce (e-commerce). And public information can be easily checked on mobile.”

Toss Securities leader Park Jae-min explained this at a press conference to commemorate the launch of Toss Securities held online on the 3rd. As it became known that the 2030 generation was the leading player who led the’Donghak Ant Movement’ by purchasing stocks in the crash market early last year, Toss will launch a mobile securities company targeting them within this month. It has been 12 years since 2008 as a newly licensed securities company. As Toss, the simple remittance app, has 18 million subscribers, it aims to attract 1 million subscribers by piloting MTS within this month.

▷ Toss Securities aims for the 2030 generation, led by the Donghak Ant Movement… Build an intuitive MTS

Toss revealed at the press conference that day, Toss Securities’ awareness of the problem, the target public, and its vision and tasks. According to the statistics that half of the stock new investors last year were in the 20s and 30s, it is a plan to introduce an easy and convenient MTS for them.

According to Mirae Asset Daewoo, KB, NH Investment, Korea Investment, Kiwoom, and Yuanta Securities, 54% (392 million) of 7.23 million new accounts created by these securities companies last year were in the names of investors in their 20s and 30s. This was followed by those in their 40s (1,670,000), in their 50s (97,000), and over 60 (350,000). There were 320,000 new accounts under the age of 20.

In fact, a generation change is taking place as the stock market collapses due to the spread of the new coronavirus infection (Corona 19). The’big hand’ of the market is still 5060 generations with a lot of capital, but the millennial generation (2030 generations), who have an adventurous tendency to invest, is emerging as a new main force in the market. They mainly valued growth over dividends and bought Samsung Electronics, Hyundai Motors, and Tesla. This phenomenon is spreading not only to Korea, but also to the United States and Europe, which are experiencing a game stop situation.

According to this analysis, the number of 2030 millennial customers that Toss Securities has set as its main customer base is about 10 million. On the other hand, in the stock market, there are about 1.5 million investors in this age group (data from KSD). With the number of Toss app subscribers exceeding 18 million, Toss Securities expects that there will be millions of potential customers among existing Toss customers.

MTS faithfully reflected this direction. When an investor enters a familiar brand name in the search box, related stocks are inquired, and the names of menus commonly used in securities MTS such as buy and sell are also displayed as buy and sell, respectively. The quotation screen was also intuitively designed to facilitate stock trading.

This direction is similar to electronic commerce or music charts. CJ CheilJedang’s share price rises by simply hitting’bibigo’ beyond telling the stocks that investors bought the most. It’s similar to searching for an artist to find a song in a music streaming app. Here, if you search for’electric vehicles’, which are widely known as beneficiaries of the recent inauguration of US President Joe Biden, related companies such as Tesla, Nikola, and LG Chem appear. It doesn’t fall short of Netflix’s sophisticated algorithm, but it’s also similar to the content recommendation algorithm Cinematch.

Toss Securities said through user-focused interviews from the beginning of development that it boldly removed the points that stock investment novices pointed out as difficult to understand or confusing and focused on implementing necessary functions.

Research information also introduced a new format. Toss Securities introduced the Toss Investment Category Standard (TICS) system, which goes beyond simply classifying the existing business categories registered by the company, and subdivides based on sales in actual financial statements.

Toss Securities analyzed the financial statements of about 2,200 listed companies, categorized the industry into 234, and made it possible to search for related stocks through MTS. Currently, the Korea Stock Exchange is classified as 24 KOSPI and 33 KOSDAQ, respectively, for a total of 57.

According to the new classification system, Toss Securities customers can easily find stocks related to industries that were difficult to search by industry classification in MTS, such as’electric vehicle parts’,’new renewable energy’, and’smartphone MLCC’.

Changes, such as a sharp fluctuation in stocks of interest or holdings, are immediately communicated to investors through’App Push’. In particular, when there is a performance announcement of a stock, MTS of Toss Securities quickly identifies changes in information on the disclosure site and delivers the content to investors.

▷ Despite the competitiveness of the’Toss’ platform, the stock market is a red ocean… In addition to existing securities companies, Kakao and Dunamu are also competitors

Leader Park explained the direction and vision of Toss Securities in this way, but there are more risk factors in the market. First, there are not a few securities companies in Korea. About 60 companies, including foreigners, are in fierce competition. They are also planning strategies to capture 2030 generations, such as establishing an MTS system and conducting stock introductory lectures and related events. Financial holding-affiliated securities companies are providing more diverse benefits by taking advantage of their banks.

As MTS entered the market in 2010, Toss is a latecomer, but Leader Park expressed a sense of the problem here. It is said that there are barriers to new investors as securities firms are targeting only the middle and elderly, who are the biggest players in the market. As a result of an in-house survey of 1,000 toss users in the 20s and 30s, more than 40% of respondents said that they would like to enter stocks. Toss is planning to attack them with the motto of convenient MTS.

He said, “It has been more than 10 years since the first MTS in Korea appeared on the market. Through quick decision-making, we will continue to showcase innovative products starting with this MTS.”

Toss Securities will sequentially disclose MTS to pre-applicants in early February, and plans to close the entire opening in February. In addition, it is planning to introduce an overseas stock investment brokerage service that allows decimal trading during the first half of the year, and an indirect investment service based on robo-advisors in the first half of next year.

There are also potential competitors in the market. Kakao Pay Securities does not handle MTS because it is still at the level of indirect investment, but it may become a potential competitor as it plans to expand its scope to the securities industry in the future. Doonamu Co., Ltd. also handles stock information provision and asset management services under the name of Kakao and Securities Plus for Kakao.

Toss said, “The indirect investment method gains sufficient understanding in the process of explaining the product, but this process is almost omitted when buying and selling stocks. Because the MTS service of Toss Securities is worth notifying new investors first, Kakao “It seems that the starting point is different.” In short, just as there is a product description for investing in high-risk derivatives, Toss will provide you with risk and useful information in stocks.

Toss announced its intention to provide ETF services such as leveraged and inverse funds in the future. However, at the beginning of the launch, the service starts with the simplest stock investment. As customers become more familiar with trading through stocks, their understanding of derivatives such as ETFs will increase, and they can be promoted in the future.

Representative Park showed confidence in providing stable securities services. At the meeting, CEO Park said, “We have duplicated all systems while preparing the service for two years, and about half of the total 90 employees have been recruited from existing securities companies to lay the foundation for stable operation in the initial stage,” said “more than 1 million active users per month. We have built an IT infrastructure that can handle enough, and we plan to increase the workforce to 180 people, which is twice the level this year.”

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