WealthKernel launches instant payments and virtual accounts

We’re excited to announce that we’ve launched the ability to instantly reconcile investment deposits! (which is a lot more exciting than it sounds, we promise).

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Slow deposits and client satisfaction

Digital banks have transformed our expectations of how quickly money appears and gets transferred in and out of our accounts.

Studies by TrueLayer and YouGov have shown that a quarter of current investors missed out on investment opportunities because funds didn’t appear in their accounts quickly enough, causing them to miss trading cycles.

Previously, when retail clients wanted to transfer funds to WealthKernel, they would submit the same to our previous client account. The team at WealthKernel would integrate with the Bank later and download a list of payments made that day.  

Funds coming in from clients would take a few hours to a few days to be reconciled and distributed in the correct account. 

This delay was especially worrisome for the risk-averse investors who were concerned about the status of their funds. 
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Faster deposits and payment settlements
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YouGov and TrueLayer found that payments heavily influence investor satisfaction. Almost two thirds (64%) of current and prospective investors are more likely to trust a provider that offers instant payments. While almost half of the current investors (46%) said they were likely to switch providers if that service also offered instant withdrawals.

The integration with ClearBank accelerates the payment settlement process and removes points of friction and delay in retail investment journeys.

Instant Matching Deposits speeds up transactions by allowing investors to instantly fund their accounts and begin trading right away. In addition, it removes manual processes through automated reconciliation and allocation.  

The new service also brings improved scalability and reduces potential errors.
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How does it work?
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We have integrated with ClearBank via their rest APIs. This means that they have provided us with webhooks that nudge or give a callback to our endpoint within seconds of funds hitting the account. 

Webhooks or web callbacks are for an app to provide other websites with real-time information. ‍

ClearBank’s webhooks notify WealthKernel’s system when the money arrives and provide the client’s identification number and reference code for easy settlement. 

Other benefits

Besides the fascinating instant matching deposits service, the integration also gives us wins in other aspects.

The integration also gives us virtual accounts for each of our clients. These accounts have their own account number sort codes that help the team identify the source of the funds and allocate them efficiently.

Even though there are many enhancements to be done in this area, this integration has boosted efficiency and improved client experience for WealthKernel!
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Read more about our new update here!