IFAs will be able to offer electronic transaction services to their clients and still retain the app...
IFAs will be able to offer electronic transaction services to their clients and still retain the applicable commission through a free service offered by Xelector.
The company, backed by enba, a European provider of internet only financial services, places its comparison, quotation and transaction service on other websites.
IFAs can use Xelector by becoming a channel for the service and design their own website around it. Nothing is branded Xelector and any business transacted on the site is attributed to that channel and would get the revenue from that transaction, according to Jussi Laurimaa, chief executive of Xelector.
The purpose is to have the service on numerous websites, thereby increasing distribution of financial products and making it more attractive for product providers to sign up their products to the service.
The Dublin-based group aims to be the intermediary between the distribution channels and product providers, with providers paying to have their products appear on the numerous channels.
Initially the offering will involve just mortgages, car insurance and credit cards. However, the group does plan to expand into other financial services products including savings vehicles.
While the group does aim to eventually sign up all product providers, its ambition at launch is to have 50% of the UK mortgage, car insurance and credit card market, in terms of volume, signed up to the service.
The system works by allowing customers to fill in underwriting details then personal preferences for the product, such as whether it is the cheapest. The system then provides a list of products for which the customer qualifies and ranks them according to the specified preferences.
Laurimaa said: "We do not just produce the cheapest but those products that the customer placed the most value on. Once the product has been selected we offer straight through electronic processing fulfilment of the product.
"We do not see ourselves as a quotation engine as with other products in the market; quotations are just the starting point. We do not want to it to be too complex in the beginning but we plan to expand on a geographical basis before we expand the product side.
"We have plans to launch the product initially in the UK, Italy, German and Netherlands markets followed by Sweden France and Spain."
Phase two of the project, which is expected to take place next year, will look at the addition of other products including funds and other saving vehicles.
Xelector is one of the more than 40 various groups that have already expressed their intent to be a user of EMX, the Autif initiative for the construction of a mutual funds trading platform.
Another advantage the project will offer for product providers is the database the group will formulate through the service. Using a data mining tool, Xelector will be able to construct profiles on customers that use it.
Laurimaa said: "This will give an overview of the customer to the product providers and help them to understand different market segments. It will also allow them to test new products since changes to their product details will be easy through the service."
For more information on Xelector, look at the group's website at www.xelector.com.
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