Data Shows One-Third of Broker Firms Still Rely on External Systems

Industry Analysis Reveals Dependency Structure

A recent analysis of the financial services industry in China has revealed that approximately one-third of broker firms continue to rely on external systems and solutions. The data, which was available to the #南洋商报 (#Nanyang Business Daily), highlights a clear divide between companies using third-party products and those with strong in-house development capabilities.

In-House Development as a Competitive Factor

The investigation shows that the ability for autonomous software development remains limited among most providers. Only a minority of broker firms possess the necessary resources and expertise to develop and maintain complex trading systems, risk management tools, and customer platforms independently.

This dependency on external providers presents both opportunities and risks. On one hand, ready-made solutions enable quick market entry and reduce development costs. On the other hand, reliance on third-party vendors can limit flexibility and impair long-term strategic autonomy.

Impact on Industry Dynamics

The data suggests that the industry is divided into two camps: companies with strong in-house development can offer customized solutions and respond more quickly to market changes, while dependents must rely on more standardized products.

Experts emphasize that building internal development capabilities is increasingly considered strategically important, particularly given the ongoing digitalization and growing complexity of financial markets. Investment in proprietary technological expertise could become the decisive competitive factor for many companies.