Leading European mobile investing platform BUX and ABN AMRO Clearing signed a contract to jointly create a new ecosystem for financial services.
This follows months of joint preparations that will now allow BUX to incorporate ABN AMRO Clearing-backed technology into BUX’s soon-to-launch investment app, STOCKS.
STOCKS will be a new mobile app that will enable European users to buy and sell shares commission-free. This new collaboration reflects a commitment to combining the future of finance with the experience and security of a trusted banking institution.
This collaboration will allow BUX to operate STOCKS using two key elements. First, STOCKS customers’ money will be held by ABN AMRO Clearing in an individual blockchain bank account using ABN AMRO Clearing’s innovative Banking as a Service (BaaS) platform. This essentially will allow BUX to operate as a bank. Additionally, customer buy and sell orders will also be routed through ABN AMRO Clearing’s Smart Order Routing (SOR) solution.
“This collaboration demonstrates both BUX and ABN AMRO’s commitment to delivering financial services as a secure, intuitive, easy-to-use experience.” said Nick Bortot, CEO and Founder of BUX. “We are in an exciting time where collaboration between fintechs and trusted, corporate institutions can deliver the best of both worlds to consumers. This new collaboration will be a key element in how we drive value for our customers in STOCKS.”
Advantages compared to an escrow account
After a successful pilot, BUX is the next, and largest client to-date to incorporate the BaaS platform. Compared to an escrow account, BaaS offers the advantages that cash flows are included in payment processes under regular supervision, guaranteeing the required transparency. Further, it reduces administrative costs for the organisation by eliminating escrow account management costs.
“We are delighted to start working with BUX. The BaaS model and the new Smart Order Router are ideally suited for an internationally operated investment company such as BUX.’’ Said Reinier van Dam, Head of BaaS, ABN AMRO.
Creating efficiency and savings for customers
BUX will also be the first party to use ABN AMRO Clearing’s Smart Order Routing (SOR) services. This system will send customer orders to exchanges, Multilateral Trading Facilities (MTFs) and Systemic Internalisers (SIs). In addition to BaaS and the SOR services, BUX will make use of the clearing and custody services of ABN AMRO Clearing. The lean structure of BUX, combined with ABN AMRO Clearing’s highly efficient SOR solution, will allow BUX to deliver commission free trading for STOCKS users, while at the same time guaranteeing BUX’s best executing obligation. This supports BUX’s continued mission to help lower the barrier of entry for consumers to participate in the financial markets. STOCKS is currently in the final stages of development and will be released in the summer of 2019, initially in the Netherlands and Germany and will be followed by a broader rollout across the rest of Europe.