YouTube channels becoming key strategy for stock brokerage firms

By Anna J. Park

With the rapid surge of retail investors' stock trade this year, brokerage firms in Korea are strengthening their own YouTube channels as a key marketing tool to attract more customers to their firms and to increase customer loyalty.

As the global pandemic has been hindering actual physical meetings between clients and employees at securities firms, a significant portion of stock broker firms' workload, such as registering for a new account, has already been transformed into contactless mode, using well-developed mobile apps.

And customers who want more in-depth investment guidance, direct counseling or research analysis about stock items can now turn to brokerage firms' official YouTube channels for various information.

Most major securities firms are running their own YouTube channels, aiming to give detailed investment advice directly to viewers. Companies' most trusted analysts from each industry sector and investment strategists appear on YouTube broadcasts to directly meet with customers online. Securities firms upload their YouTube videos to be seen by everybody, and viewers can send questions to these top-notch analysts during live-broadcast sessions.

Kiwoom Securities has brokerage industry's top YouTube channel

Kiwoom Securities, which only operates its Yeouido headquarters without any other regional branches, has been targeting retail investors from its start as the nation's first online-only brokerage firm back in 2000. In order to make up for the lack of branch services for customers, the stock broker has emphasized an online approach and service for customers.

Thanks to such an early start on the YouTube platform back in 2013, the company's YouTube channel now has the highest number of subscribers of about 91,100 as of Oct. 7. Yet, until earlier this year, the number of subscribers stood at only around 30,000; the number has tripled in just a few months, with the rise of retail investors participating in local stock markets during the period.

The firm uploads several videos daily, and a total of over 2,400 videos' cumulative hits exceeded more than 5.8 million, which is the highest number of cumulative views for a Korean brokerage firm. One of the most popular shows of the channel is a daily live talk show with stock analysts about global as well as Korean stock market conditions, providing market experts' investment strategies and views to retail investors. The company's YouTube videos offers various range of information for customers, including how to subscribe for initial public offering (IPO) process, or how to effectively use home trading system (HTS) or mobile trading system (MTS).

“Based on consistent interests and participation by our channel's subscribers, the number of Kiwoom's YouTube subscribers has continuously increased,” an official from Kiwoom Securities said. “The company aims to give substantial help and support for retail investors' stock investment, ranging from easy contents for stock novices to higher-level of contents for more experienced investors,” the official added.

Hana, Mirae Asset, Korea and Hanwha closely chase Kiwoom in YouTube platform

Hana Financial Investment, Mirae Asset Daewoo, Korea Investment & Securities and Hanwha Investment & Securities are currently chasing Kiwoom's top performance on YouTube platform as second-tier group. Hana has about 70,600 subscribers as of Oct. 7, followed by Mirae Asset's 59,700, Korea Investment's 53,000 and Hanwha Investment's 49,500 subscribers, respectively.

Each YouTube channel by the brokerage firms provides original programs and formats. Hana Financial's research head Cho Yong-jun has begun his own interview series, inviting powerful figures in business for the interview. Invited guests so far include Meritz Asset Management CEO John Lee and Assetplus CEO Kang Bang-cheon, as well various financial industry experts, offering in-depth conversations with these sage masterminds' investment insights and philosophies.

Korea Investment & Securities provides sector analysis with the firm's stock analysts as well as daily market briefings. Hanwha Investment also has its own unique segments like “stock battles,” comparing representative stocks of an industry.

KB, NH, Eugene, Daishin, eBest form third-tier groups

KB Securities, NH Investment & Securities. Eugene Investment, Daishin Securities and eBest Securities respectively have YouTube followings of about 20,500, 18,600, 11,500, 7,150, and 6,210, as of Oct. 7.

These YouTube latecomers, though, offer a wide variety of informative contents for viewers. The brokerage firms' star analysts and influential managers appear in online shows regularly, providing their own strengths and insights for retail investors.

YouTube guidelines to be made within this year

As more and more securities companies compete for retail investors' attention on YouTube as a tool to grab their loyalty and attract more customers, criticism arise that these YouTube broadcasts and online marketing are not under proper management supervision.

Against this backdrop, Korea Financial Investment Association (KOFIA), the group of the nation's brokerage firms and asset managers, has been working on detailed guidelines for sound competition in the online platform.

“The association is currently working on gathering the brokerage companies' opinions about YouTube channel operations to come up with transparent guidelines for all,” an official from the KOFIA said.