Leave a comment

Wednesday 05 June 2024 by Philip Brown

Empowering Investors - Advancements in Technology Make Bonds More Accessible and Simpler to Own

All things change over time and bond investing is no exception. Some changes are small and incremental; some are larger and more consequential. New technologies arise, are utilised, and then start to fade.

At FIIG, we have spent the past 25 years trading bonds on our clients' behalf, enabling them to make informed decisions through education, offering them considered opinions via our research and providing them the support of a fixed income expert. As with many aspects of our lives, the digital revolution is transforming the way we engage with bond investments, and our goal continues to be making investing in bonds more accessible and transparent than ever before.

Did you know bond coupons are called coupons because they used to be literal coupons: small pieces of paper attached to the physical bond an investor bought?

Bond markets left that technology behind many decades ago. When FIIG began 25 years ago email was only just beginning to become the ubiquitous force of communication it was over the 2000s and 2010s. Email has been central to bond investing over the last 20 years, but now the fully digital era is progressing, and email is fading a little from the dominant position it once held as bespoke applications and fully online meetings are easier to use.

The advancements in Financial Technology (fintech) are changing banking and investing, including democratising access to bond markets. By adding a digitised process of selecting, buying and selling bonds, FIIG is at the forefront of the next shift towards more transparent, efficient, and user-friendly bond markets.

Transparency and Accessibility

One of the most significant advantages of digital bond platforms is the increased transparency they offer. Investors can access detailed information about various bonds, including their performance, risks, and returns. This level of transparency was previously hard to come by and is crucial for making informed investment decisions.

Education and Empowerment

Digital platforms are not just about transactions; they are also about education. Many platforms offer resources and tools to help investors understand the bond market better. From tutorials and webinars to market analysis and personalised advice through a dedicated relationship manager, these resources empower investors with the knowledge they need to make confident decisions.

Making Direct Bonds More Accessible to Australian Investors

One of the most significant strides in this digital transformation is making direct bonds more accessible to Australian investors. This is exemplified by our platform, MyFIIG, which has been at the forefront of this change. MyFIIG is designed to provide greater transparency in over-the-counter trading, simplifying the entire bond-buying process.

Earlier this year, we launched the first phase of online ordering to enable clients to submit a bond order request via our client portal, MyFIIG. We are pleased to release the latest update to clients, allowing them to navigate directly to a selection of featured bonds that can be purchased online.

Streamlined Processes

MyFIIG provides clients with portfolio information, including holdings, buy and sell transactions, and coupon payment dates, enabling investors to buy bonds with just a few clicks. Here are some of the features and functionality that we've built in:

  • Streamlined Online Trading: MyFIIG simplifies buying a bond online. You can order from a select range of bonds directly through the MyFIIG portal.
  • Comprehensive Research and Metrics: Know what’s what for each bond. There’s the identity of the bond with things like yield, maturity date and call dates, but also the extra information to help make informed decisions with our in-house research.
  • Featured Bonds: Explore featured options our team recommends on a daily basis.

The Future of Bond Investments

The digital transformation of the bond market is still in its early stages, but the progress is promising. As technology continues to evolve, we can expect even more innovative solutions that will further simplify and enhance the bond investment experience.

Digitising the trading of bonds is not just about modernising a traditional investment vehicle, either. It's about making bonds accessible to everyone, regardless. By breaking down barriers and fostering inclusivity, we are opening the door for more individuals to participate in and benefit from bond investments. As we continue on this digital journey, one thing is clear: the future of bond investing is bright, inclusive, and empowering for all.

To open an account and start trading bonds online, click here.