BANKING
Finding the right investment platform But what should customers look for in a new investment platform ? Which elements are critical to success and which add the most value ? Richard Dufty , Chief Commercial Officer , Arkose Labs , points out that security of the solution should be paramount .
“ There ’ s a saying that goes something like this : ‘ where the money goes , so go fraudsters ’. Over the past decade , many investment firms have moved consumerfacing operations online , while other investment firms have started up as digital native platforms .”
“ AS 2021 WITNESSED A RECORD-BREAKING INVESTMENT INTO ESG-FOCUSED FUNDS , IT WOULD BE AN OVERSIGHT TO CAST THIS OFF AS A BUBBLE ”
SAMI OSMAN CO-FOUNDER AND CEO , QUARTR
Dufty believes this has blurred the definition lines between investment firms and fintech . “ People can argue both sides of the question . Regardless whether an investment firm digitally transformed or started up as a digital native , one thing they both have in common is they ’ ve captured the attention of fraudsters .” These financially-motivated fraudsters hack into consumers ’ online accounts at their investment firms to make money in a couple of different ways .
“ Firstly , fraudsters will test a consumer ’ s account credentials , making sure that the credentials work by getting clear access into the consumer ’ s account . Once the credentials have been ‘ verified ’ by the fraudster , the fraudster will sell those credentials on the Dark Web to other fraudsters . The credentials that sell for the most money are called Fullz – that means that the fraudster has the full information package on a real person , including their name , email address , social security number , address , etc . At scale , fraudsters can make a massive amount of money .”
Fees are another area of consideration . With increased transparency , comes greater onus on the customer to take care of their own investment decisions – but that means tools must be up to the task . Different investment platforms provide different services and charge varying fees .
“ Choosing the right one is a very personal decision . Investors must be aware of factors like platform costs , potential access to guidance , and how easy the platform is to browse ,” says Osman . “ Unlike a multi-billiondollar enterprise , the average person is unable to access the most expensive tools , such as high-cost terminals . Investors should therefore do their own research and choose platforms that are in accordance with the functionalities they need .
Houlihan agrees , saying customers need to look for attributes such as easy access to their account information and make sure they are provided with as much information as possible . This could include full portfolio performance data , underlying investment performance data , investment tools such as tax tools , unused capital gains and confirmation of income paid .