SINGAPORE: Remisiers, once the backbone of Singapore’s retail stock market, looked destined for extinction with the proliferation of online platforms that have made it possible for investors to trade faster and cheaply without a human intermediary.
But the role is now making a comeback.
Digital brokerages such as Tiger Brokers Singapore, Saxo Markets, Moomoo Singapore and Syfe are betting that investors still value something an app cannot easily provide – a trusted human who knows their portfolio, understands their concerns and can put a sudden market move into perspective.
All boast of dedicated teams of representatives to help clients.
Listed companies like Nanofilm Technologies and Lendlease are also tapping a new generation of remisiers to cultivate their relationship with retail investors.
Instead of relying solely on investor-relations presentations and announcements, some companies are using remisiers to generate interest before an initial public offering (IPO) and keep investors engaged after the listing via briefings and their networks.
A remisier is a licensed trading representative attached to a Singapore Exchange member securities firm.
Tiger Brokers is recruiting and training remisiers, recasting them not as order-takers but as investment representatives who help clients navigate a market overflowing with information.
As the app executes the trade, surfaces data and delivers headlines, a human can distil information, provide context and help clients avoid making emotional decisions in volatile markets.
The execution role that remisiers once performed has largely disappeared since investors can now trade directly through an online platform or app.
With execution costs now near zero, the value of a human intermediary has shifted from order-taking to interpretation, said S Nallakaruppan, president of the Society of Remisiers.
There are about 2,000 remisiers and dealers in Singapore, 420 of whom are members of SRS.
Remisiers using artificial intelligence (AI) for research and stock screening can cover more clients, “like a private banker for equities”, added Nallakaruppan, who has more than 30 years of experience in the stockbroking industry.
Raymond Chin, a senior director at Tiger Brokers, cited a study showing that while 89% of investors use digital tools to gather information, only 37% are comfortable relying on AI for personalised financial advice.
During market volatility, half still prefer to speak face to face with a human. Another study found 69% of young people prefer human advisers when making important insurance decisions.
“Technology has made information free, but it has also turned excessive information and emotional impulses into the biggest enemies of good investing.
“What our investment representatives do now is help clients filter noise, prevent panic selling, and provide context for why certain stocks are falling,” he said.
Chin said human representatives can provide three things AI cannot: accountability, personalised context and emotional support during market downturns.
While AI can analyse data, a human can understand a client’s circumstances over time, help them make sense of sudden market moves and provide perspective during periods of volatility.
Some young people are drawn to the revitalised profession, said Nallakaruppan, as the industry sheds its image as a sunset sector amid a recovery in trading activity and liquidity.
Still, the profession faces a succession challenge, with two-thirds of SRS’ 420 members aged 60 and above at a time when there is renewed demand for human representatives.
For younger recruits, part of the job’s attraction is they operate under agency arrangements rather than as conventional brokerage employees, giving the role an entrepreneurial “you are your own boss” character and flexibility.
Such remisiers are appointed by a stockbroking firm as independent, commission-based trading representatives to execute securities trades in the firm’s name. They are left to build a client base, cultivate relationships and earn according to the business generated.
At Tiger Brokers, fresh graduates from polytechnics and universities, as well as mid-career switchers, receive training and obtain the necessary Capital Markets and Financial Advisory Services certifications.
They will then establish a client book using Tiger’s infrastructure, said Chin, who heads the brokerage’s agency.
The revitalisation of Singapore’s stock market under the Government’s Equity Market Development Programme (EQDP) may also have given the profession renewed attention by encouraging more trading interest and retail participation.
However, remisier Wang Han Hui at brokerage UOB Kay Hian said EQDP alone is not enough to make the profession sustainable.
What really matters is consistent investor participation over the long term, rather than a single IPO or a temporary surge in the market.
“What is encouraging is that we are seeing more initiatives around the whole ecosystem, from IPOs, retail participation and new products to market access,” he said, adding that the profession would benefit if Singapore keeps attracting investors and encouraging them to stay invested in local stocks over the long term.
Whether the rejuvenated role translates into long-term career viability will depend on the individual and the value he or she brings, said remisier Sebastian Chan, who has been with UOB Kay Hian for six years. — The Straits Times/ANN
