Moving to a cloud-based architecture has ensured dynamic scaling to handle peak trading loads efficiently: Sandeep Chordia, COO, Kotak Securities

Kotak Securities has taken a quite aggressive digital journey, towards cloud-native, AI-powered trading experience with Kotak Neo being the priority. In an interview with Express Computer, Sandeep Chordia, COO, Kotak Securities, talks about the key drivers for this change, how AI and automation are opening the gates for more efficient trading, and the company’s steadfast commitment to security and compliances. He also examines how hyper-personalisation and next-gen technologies are reshaping the future of retail brokerage to offer a high-performance, scalable, and smooth trading experience for traders and investors.

Kotak Securities has made a significant shift towards a digital-first trading experience, with Kotak Neo now handling all online business volumes. What were the key drivers behind this transformation, and how has it enhanced the customer trading experience?

Kotak Securities has always been at the forefront of innovation, launching web trading in 2001 and mobile trading in 2011. However, as trading volumes increased and market dynamics evolved, we recognised the need for a scalable, low-latency, and high-performance trading platform. This led to the complete digital transformation of our trading infrastructure.

Key drivers behind this transformation included scalability and performance, achieved through a cloud-based architecture that dynamically scales to handle peak trading loads efficiently. Agility and speed were enhanced by transitioning from a monolithic to a microservices architecture, enabling faster development cycles and seamless feature rollouts. Additionally, a renewed focus on user experience simplified the trading process, making it more intuitive and seamless for clients. With Kotak Neo, all online trading volumes have successfully transitioned from our legacy ITMS system, delivering a best-in-class, high-speed trading experience to our customers.

Scalability and stability are critical for high-volume trading platforms. Could you share insights into the recent technology enhancements in Kotak Neo that have improved performance, speed, and reliability?

To ensure optimal trading performance and reliability, we have implemented several key technology enhancements. Cloud-native and hybrid architecture enables dynamic scalability, supported by an on-premises core trading engine for ultra-low latency. Microservices and containerisation allow modular development, better fault isolation, and seamless updates with minimal downtime. Advanced caching mechanisms, such as Redis caching and a Content Delivery Network (CDN), optimise API response times and reduce backend load.

Real-time data processing, using Kafka streaming, enhances data accuracy and speed for order/trade updates, margins, and positions. Multiple trading engines distribute client loads efficiently, ensuring uninterrupted service even during market surges. Security and fault tolerance are reinforced with a robust disaster recovery (DR) setup featuring real-time replication to ensure business continuity. Additionally, proactive monitoring tools like Instana enable early issue detection and swift resolution. These advancements have significantly improved platform stability, speed, and the overall trading experience.

AI and automation are reshaping financial services. How is Kotak Securities leveraging tools like InstaTrade and the Strategy Bot to enhance trading efficiency and user engagement?

AI-driven tools such as InstaTrade and Strategy Bot enhance trading efficiency by reducing clicks, minimising slippages, and simplifying complex trades. InstaTrade is designed for traders who predominantly trade ATM±1 strikes, offering a compressed option chain for quick selection, integrated charts, and an optimised order placement flow for scalpers. The Strategy Bot enables clients to predefine stop-loss and profit targets at a strategy level rather than per leg, streamlining multi-leg trade execution. These innovations empower traders with greater speed, precision, and an enhanced user experience.

Personalisation is a major trend in fintech. With features like customisable stock baskets and SIP options, how does Kotak Neo use technology to create tailored investment journeys for clients?

We identified that many customers were manually creating stock baskets and executing SIPs, which inspired us to simplify this process. The Stock Basket feature allows traders to invest in a curated set of stocks effortlessly. SIP in Stocks automates systematic equity investments, making it easier for clients to build long-term wealth. Additionally, integrated research recommendations help investors make informed decisions. The order window, home page, and fund page are customised based on whether the user is an investor or a trader, while the system also remembers the user’s last preferences. These features enhance personalisation, making investing more convenient and efficient for our clients.

With rapid advancements in trading technology, security and compliance remain key challenges. How does Kotak Securities ensure a secure and seamless digital trading experience for its users?

Security is at the core of our digital ecosystem. We employ a Web Application Firewall (WAF) to protect against DDoS attacks and unauthorised access. Every release undergoes vulnerability assessments and patch management, ensuring rigorous VAPT checks and timely server updates. Two-Factor Authentication (2FA) strengthens client security by minimising fraud risks, while active monitoring ensures continuous surveillance for early threat detection.

Additionally, we provide surveillance alerts for various scrips under the exchange’s surveillance mechanism, such as penny stocks, enabling customers to make informed decisions about trading in these scrips. These security protocols ensure a safe and compliant trading environment for our users.

The adoption of AI and automation often raises concerns about balancing technology with human expertise. How does Kotak Securities integrate AI-driven insights while maintaining the human touch in trading and advisory services?

At Kotak Securities, AI serves as an enabler rather than a replacement. Our approach follows the principle of “AI-Maker, Human-Checker,” where AI generates insights, and human experts validate them. AI is integrated across various functions: in marketing, AI-driven content generation personalises customer engagement; in IT development, tools like GitHub Copilot enhance coding efficiency; in compliance and operations, NLP-based automation streamlines processes; and in client experience, AI-powered chatbots assist customer service agents in resolving queries efficiently. By blending AI’s efficiency with human expertise, we enhance decision-making while maintaining a personal touch.

Looking ahead, what are some upcoming innovations and future developments in trading technology that you believe will redefine the retail brokerage industry?

The future of trading lies in hyper-personalisation, automation, and seamless AI integration. AI will evolve from merely prompting responses to proactively enhancing decision-making and trading efficiency. Automation and simplicity will continue to improve the user experience, making complex trading strategies more accessible. Additionally, as technology advances, market expansion will allow retail traders greater access to advanced trading tools and insights. At Kotak Securities, we are committed to staying ahead of the curve, continuously innovating, and redefining the trading experience for our clients.