The new service platform will combine depository accounts with investment accounts for better synergic solution
Barclays PLC (ADR) (NYSE:BCS) looks to combine its banking and investment services with its brokerage platform called Barclays Stock Brokers, according to Financial Times. It will combine with Barclays Direct Investing, which will launch in 2017, as Barclays looks to provide one platform solution for all kinds of investments.
Barclay’s competitor, Hargreaves Lansdown, has similar platform for its clients. Barclays states that it looks to address the advice gap that exists in the financial services industry. The aim of the platform is to help the less experienced investors. Therefore, it includes the investment tools with better usability and understandably.
The new platform will be open for all retail banking customers with savings and current accounts. The investment accounts will also be included which would make it easier for clients to transfer money from their depository accounts to investing accounts. Such platforms are usually provided in wealth management as clients have larger accounts comparatively. Therefore, this kind of platform is novel to the banking and investment services.
The stockbroker operations have been running for three decades, which will end with the introduction of Direct Investing. According to the sources, the supporting staff of stockbrokers will continue to work at the new platform except a few to be deployed within the bank.
The managing director at Direct Services, Rupert Dickinson, said, “You’ll struggle to find any other player in the marketplace that provides a full investment offering fully integrated with banking. This is an investment proposition that everyone will be able to access, even non-banking customers.”
Barclays will be able to target a broader range of clients through its new service platform, which will open trading and investing for self-directed investors. Trading revenues have been low lately due to volatile markets, particularly for the retail clients. This one of a kind service platform can provide solutions for such clients.