AACB introduces fractional investing infrastructure for commercial clients

January 18, 2022. AMSTERDAM.

ABN AMRO Clearing is pleased to announce a new infrastructure for business clients such as brokers to allow fractional investing by their end clients.

ABN AMRO Clearing is pleased to announce a new infrastructure for business clients such as brokers to allow fractional investing by their end clients. Fractional investing is a method of investing in part of a share, instead of needing to buy a full share.


Neobroker BUX is ABN AMRO Clearing’s first client to start using this new feature. Since early January, clients of BUX might spend 10 euros to buy a fractional share in Tesla, for example. The new infrastructure has been an immediate hit, and BUX’s clients have already made over ten thousand fractional investments during the first nine days of the new feature being available on BUX Zero.


Hugely popular in the United States

In the US, fractional investing has been around for some time, and has become hugely popular. A few European brokers utilise the US infrastructure. Given the legal and supervisory hurdles that this involves, however, eighteen months ago ABN AMRO Clearing started work to develop its own infrastructure to offer in Europe. Following its launch earlier this month, the new service will soon make fractional trade possible in European shares too.


"Smart and reliable technologies are creating more and more opportunities for customised investor services."


Rutger Schellens CEO ABN AMRO Clearing


Banking as a Service

It was already possible for clients of brokers such as BUX to handle their investments from a bank account with ABN AMRO Clearing (Banking as a Service). Now, they can use their accounts to buy and sell both full shares and fractional shares. An innovative cloud-based administration system keeps meticulous track of what fractional purchases an investor has made, without ABN AMRO needing to buy more than one additional full share per fund.


Smart technologies

Smart and reliable technologies are creating more and more opportunities for customised investor services. Rutger Schellens, CEO of ABN AMRO Clearing explains, “We are active in the business-to-business segment and offer services to retail brokers such as BUX. These innovations help us to retain clients and further boost our impact and income.”


Yorick Naeff, CEO at BUX adds, “The launch of fractional investing marks an important new chapter in the normalisation of investing in Europe. As the first Dutch broker to offer fractional investing in individual stocks to retail investors, BUX continues to lead the evolution of neobrokerage in Europe.


Author


Ariën Bikker

Senior Press Officer Corporate Banking

arien.bikker@nl.abnamro.com

+31 (0)20 628 5719