Intermediaries will be able to offer electronic transaction services to their clients and still retai...
The company, backed by enba, a European provider of internet-only financial services, places its comparison, quotation and transaction service on other websites.
Advisers can use Xelector by becoming a channel for the service and design their own website around the service. 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 at Xelector.
The purpose behind the service is to increase distribution of the financial products and make it more attractive for product providers to sign up their products to the service.
The group aims to be the intermediary between the channels and product providers, with providers paying to have their products appear on the numerous channels. The plan is to launch the product initially in the UK, Italian, German and Dutch markets, followed then by Sweden France and Spain.
Initially the offering will only involve mortgages, car insurance and credit cards, but the group does plan to expand into other financial services products including savings vehicles. While it aims 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 first fill in underwriting details then personal preferences for the product, for instance, 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 places 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 like other products in the market - they are just the starting point. We do not want it to be too complex in the beginning, but we plan to expand on a geographical basis before we expand the product side."
Phase two of the project, which is expected to take place over the course of next year, will look at the addition of other products including funds and other saving vehicles.
Xelector is one of 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 the service.
For more information on Xelector, view the group's website on www.xelector.com
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