Powering WealthKernel's Instant Matching Deposits

WealthKernel, a provider of digital investment services and infrastructure, today launched Instant Matching Deposits powered by ClearBank, the cloud-based clearing bank. Instant Matching Deposits allows investors to instantly fund their accounts and begin trading without waiting days for payments to clear, and benefit from additional consumer protections and improved reliability.

ClearBank is powering the service by providing access to the Faster Payments Service scheme to speed transactions and Client Money Accounts to allow WealthKernel’s clients to automate reconciliations.

Retail investing has dramatically increased to the point where retail trading now accounts for almost as much volume as mutual funds and hedge funds combined. This has in part been driven by higher disposable incomes available to many due to Covid-19 lockdowns and a persistently low-interest rate environment. It is also being driven by the simple and low-cost access to new digital-first trading and wealth management offerings, provided either by dedicated apps or banks, fintechs or other institutions who have integrated this functionality into their offering. In this increasingly crowded market, trading and wealth management providers are looking to rapidly embed new services and capabilities that allow them to create specialist services for specific, and often underserved demographics, as well as differentiate their offering from competitors.

Instant Matching Deposits will allow the customers of WealthKernel’s trading and wealth management providers to instantly fund and trade without waiting for payments to clear. This is particularly compelling for new and perhaps more risk-averse customers who can be concerned about the status of funds while they are settling. By removing manual processes through the automated reconciliation and allocation of investments to the right account, the service dramatically improves scalability and reduces potential errors, in addition to accelerating retail customers’ investment journeys.

ClearBank is also providing WealthKernel with Client Money Accounts which WealthKernel will use to hold the funds on behalf of its customers in accordance with its obligation to protect their money under CASS 7. In addition, ClearBank will provide WealthKernel with connection to the real-time Faster Payments Service scheme, via APIs.

“WealthKernel prides itself on working with diverse businesses that are disrupting the investment sector and creating positive change, be it through the likes of ESG-focused investment programmes or by supporting demographics who are often underserved by existing products,” said Karan Shanmugarajah, CEO of WealthKernel. “To give these innovative companies the best chance to succeed, they need a better trading tech stack that is easy to embed and scale. By partnering with ClearBank and utilising its embedded banking infrastructure, we’re addressing this need and are confident that the solution will open up the market for our clients and ensure a better experience for their end-users.”

“ClearBank is proud to work with fintechs like WealthKernel that want to challenge the status quo by pioneering new services and capabilities that help providers to both innovate and differentiate as well as create better and more inclusive services,” said Charles McManus, CEO of ClearBank.

“WealthKernel’s new Instant Matching Deposits product demonstrates how our embedded banking technology can help financial service providers to create pioneering services that meet the demands of new customer segments as well as improve operational efficiencies and provide elasticity. With this new service launch and the recent funding raise, WealthKernel is perfectly positioned to push the industry forward and we’re excited to be part of that journey.”

In December 2021, WealthKernel secured a US$7m investment in an extension of its Series A funding round, led by XTX Ventures and ETFS Capital. The firm is using the funds to support integration of intraday trading, and the expansion of its services into European markets.