Instant wealth management builds trust, TrueLayer, YouGov finds

By Sunniva Kolostyak

Providers implementing instant payments, transfers and onboarding are more likely to build trust and drive higher deposits, a report from TrueLayer and YouGov has found.

The research, issued by financial connectivity and API provider TrueLayer and conducted by public opinion and data analyst YouGov, unveiled five payments trends impacting digital wealth management.

It showed that instant payment capabilities for account funding and withdrawals will build increased customer trust and drive higher deposits. Almost two thirds (64 per cent) of current and prospective investors are more likely to trust a provider that offers instant payments, with 46 per cent said they were likely to switch providers for instant withdrawals. Another 37 per cent would also consider depositing more money if they could withdraw instantly.

On the other hand, slow deposits could cost customers money and damage the provider’s brand. TrueLayer found that a quarter of current investors have missed out on an investment opportunity because funds did not appear in their accounts quickly enough. This rose to 29 per cent in Italy and 38 per cent in France.

Four out of five investors are also comfortable using instant bank transfers for transactions to their financial services accounts.

Onboarding is another element which should be fast and trustworthy, as 61 per cent of investors saying they would not tolerate a signup process lasting more than ten minutes. Over half of the respondents (56 per cent) stated are likely to quit a signup process if they are directed outside the app to make their initial deposit, suggesting white-labelling any external payment providers is key.

Instant bank verification could also be critical: 70 per cent of respondents stated they would trust a platform that verifies their account directly with their bank.

Commenting on the findings, George Davis, Product Lead for Payments at TrueLayer, said that with Open Banking, payments now present an opportunity for WealthTech firms to differentiate and drive customer loyalty.

“The idea of waiting five or more days for a funds transfer is archaic. Customers can now transfer money between their bank accounts with a swipe of an app and increasingly want the same from their savings and investment services providers,” he said.

Also commenting, Nick Saunders, CEO of Trading 212, said: “The ability to fund accounts instantly and securely is critical for our users. TrueLayer enabled us to offer such an experience even for bank deposits. Our users no longer need to do manual wire transfers and wait a day or more before funds arrive in their Trading 212 account.”

Charlie Masters, Product Manager at Nutmeg, added: “In a world where products and services need to be delivered more securely, quickly, and at a lower cost, payment initiation via Open Banking will have a crucial role to play.”

The survey had around 1,800 respondents who were current users of wealth management services, while a further 1,400 were prospective users who are considering using services in the future.