“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. We’re excited to work with TrueLayer and look forward to working with them as they expand geographically”.
CMC Markets has rolled out TrueLayer Payments in the UK and Europe, bringing fast, frictionless, and secure open banking payments to customers of the online trading platform.
With TrueLayer, investors are now able to quickly access and trade with funds deposited into their CMC Markets accounts in order to access the brokerage firm’s services, including access to spread bets and trade contracts for difference (CFDs) through financial foreign exchange, commodities, indices, cryptocurrencies and more.
The open banking solution further reduces friction and the risk of fraud by instantly pre-populating customer details and featuring strong customer authentication (SCA).
CMC Markets users in UK and Europe can use Instant SEPA
Colleen Bohm, Head of Payments at CMC Markets said: “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. We’re excited to work with TrueLayer and look forward to working with them as they expand geographically”.
Mariko Beising, VP of Financial Services & Partnerships at TrueLayer, said: “Speed has never been more important for customers paying into a trading account: delays or clunky payment methods can lead to investment opportunities being missed and customers using rival services. 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.”
The lack of instant payments can be a deal breaker for clients of online trading platforms. A survey of over 3,000 current and prospective users of online wealth management services across Europe conducted by TrueLayer and YouGov has revealed that slow deposits have also caused nearly a quarter (24%) of those surveyed to miss out on investment opportunities, while two in three current or prospective investors (64%) would be more likely to trust a provider that offers instant payments.
CMC Markets reported 15-20% volume drop in Q2
Last week, CMC Markets warned of subdued financial markets and lower trading volumes in the first quarter of its fiscal year 2024. The listed broker joins other UK platforms complaining of a slowdown in market activity, which has compounded the effect of the regulatory crackdown.
The online broker issued a trading update for the first quarter of the financial year 2024, covering the period from 1 April to 30 June 2023. As anticipated, the first quarter saw quiet market conditions, leading to a 15-20% year-on-year decline in client trading and investing activity.
Despite these conditions persisting into the beginning of Q2, the impact on client activity was mitigated by stronger interest income. Therefore, the overall net operating income remains on a similar trajectory as the same period last year. The company also assured investors that its key performance indicators, such as client money, assets under management, and active clients in both trading and investing businesses, continue to show resilience.