CMC Markets’ decision to name True Layer to boost customer onboarding and payments comes amid growing use of open banking in the UK with now over five million users in the UK United.

Image source: Luca Martinetti and Francesco Simoneschi, co-founders of TrueLayer

Online trading platform CMC Markets has partnered with TrueLayer and will leverage its open banking technology to help boost customer onboarding and payments.

CMC Markets, a London-listed company, offers online stock trading, where clients can trade thousands of financial instruments across forex, indices and commodities, for example.

CMC Markets’ decision to name TrueLayer to boost client onboarding and client payments comes amid growing use of open banking in the UK with now over five million users in the UK .

According to a study by YouGov and TrueLayer, almost two-thirds (64%) of current and potential investors are more likely to trust a provider that offers instant payments, which open banking offers.

TrueLayer claims that open banking can provide more “efficient” and “cost-effective” processes for investment platforms such as CMC Markets.

For example, it says it can improve the onboarding process with enhanced verification, which means customer identities and creditworthiness can be assessed in seconds, rather than days, compared to checks. manual bank statements.

By pre-verifying customer details, TrueLayer claims it can also simplify payment setup, which means fewer failed transactions.

The open banking platform, founded in 2016 by Francesco Simoneschi and Luca Martinetti, also says it will support an improved experience for CMC Markets clients when funding their investment accounts.

Using instant and secure account-to-account payments through an open banking system, there is no longer any need to enter card or bank account details, using biometrics to authenticate identity and confirm payment.

Real-time payment confirmation also provides CMC Markets with assurance that each trade has been authorized and that clients have funds available to trade, TrueLayer said.

Colleen Bohm, Head of Payments at CMC Markets, said: “CMC’s focus on improving the investor experience led us to consider the role open banking could play in supporting our strategy. digital. This included things like verifying customers and providing more efficient payments. »

In April, TrueLayer created the industry’s first Variable Recurring Payments (VRP) API for swipe and non-swipe payments.

The launch made TrueLayer the first open banking provider to support different types of recurring payments through a single API.