Online
trading platform CMC Markets (LON: CMCX) has announced a move to improve user
experience by integrating TrueLayer Payments in the UK and Europe. TrueLayer, an
open banking platform, brings to the table a closed-loop payments product that offers
secure and swift transactions. According to the company press release, it is an
upgrade from traditional payment methods such as debit cards or manual bank
transfers.
CMC Markets Adds Open
Banking Solutions
CMC Markets
has been offering its services in online financial trading since 1989, serving
over 300,000 clients worldwide. The collaboration with TrueLayer is set to
elevate the trading experience for CMC Markets’ customers, offering them an account-to-account
payment experience.
Investing is about to get a whole lot faster ⚡️?@CMCMarkets is partnering with TrueLayer to bring open banking payments to their platform ?Learn more here: https://t.co/IMzl7NZx0t #investing #tradingplatforms #openbankingpayments #openbanking pic.twitter.com/f3kbmsNZko
— TrueLayer (@TrueLayer) August 2, 2023
The
integration implies that users can now enjoy faster payments, with funds
swiftly deposited into their CMC Markets accounts. The technology also
pre-populates customer details instantly and has a strong customer
authentication (SCA) built in, thereby reducing friction and fraud risk.
“Our
clients value an interactive payment method and one which can deliver near
real-time payments. Open Banking delivers this for CMC in the UK market and in
Europe where clients can use Instant SEPA,” Colleen Bohm, the Head of
Payments at CMC Markets, commented. “We’re excited to work with TrueLayer and
look forward to working with them as they expand geographically.
The news
comes days after CMC Markets released a trading update that indicated a 15 to 20
percent year-on-year decline in client investment activity. According to the
brokerage operator, the slowdown in trading activity between April and June was
accelerated by calm market conditions and was in line with the company’s
expectations.
A Response to Evolving
Market Needs
A recent
survey by TrueLayer and YouGov revealed that almost a quarter (24%) of more
than 3,000 current and prospective users of online wealth management services
across Europe have missed out on investment opportunities due to slow deposits.
The survey also highlighted that about two-thirds (64%) of these investors
would place greater trust in a provider that offers instant payments.
With the
integration of TrueLayer’s open banking technology, CMC Markets addresses these
evolving market needs, ensuring its customers do not miss out on investment
opportunities due to slow or clunky payment methods.
Mariko
Beising, the VP of Financial Services & Partnerships at TrueLayer, believes
that open banking payments make deposits faster and smoother, while maintaining
rigorous security standards. “We’re excited to work with CMC Markets to
bring these advantages to their customers,” Beising added.
In the
past, open banking solutions offered by TrueLayer were implemented by
Revolut and other companies from the financial technology sector. The company
expanded its European presence significantly and entered
five new markets in 2022.
This article was written by Damian Chmiel at www.financemagnates.com.
