FAQ for financial institutions
Q: how does it work?
A: An amount based on our algorithm is taken out of each card transaction and moved from the current account into risk-appropriate portfolio of low-cost funds (medium and long term goals) and a savings account (short term goals), all held at our partner bank.
Q: How do you decide on where the money should be invested?
A: We carry out a MiFID II compliant risk appetite and investor profiling exercise during the online customer onboarding process (to determine client "appropriateness and suitability.")
This will determine the right category for the user (which may be fed into our partner bank's own systems), and hence which simple, low cost, highly diversified ETF-based funds to direct their long term investment savings to. Given the strong and growing interest in ESG investing among Millennials, we are also considering a portion of the funds being allocated, at the user's choice, to green, impact or ethical funds.
Q: what are the benefits of implementing limitless?
A: Banks and other financial institutions need to engage with their customers, especially Millennials, which is what we specialise in
They can also offer and cross-sell attractive and suitable financial products to them based on the information we have (with permission from the customer, nowadays willingly granted in return for offers of a wide range of goods and services)
Finally they can monetise data with superior credit decisions for individual customers as well as through aggregated data about their customer base
Q: What level of integration is required?
A: Our development team can easily integrate with any banking system as already showcased with bunq.
Q: How do you get customer data?
A: Limitless exchanges customer transaction data with banks through fully secure banking communication channels, using current banking API's and in the future through the PSD2 standard.
Q: Will this be regulated as an investment advisory service?
A: As a white-label product, we are operating under the local bank partner’s overall regulatory umbrella. We consult with each organization on specific local licensing issues regarding what constitutes "advisory services". The initial product offer consists of 4 - 5 passive index funds ranked by risk appetite for the user to select from.
Q: How much is the fee of your service?
A: Please contact us at firstname.lastname@example.org for more details and to discuss how we can tailor Limitless to suit your organization.