To address this, SAXO partnered with HSBC to support real-time funding of investment accounts through an innovative real-time direct debit API solution, which provides SAXO with a more efficient alternative to traditional direct debits, while driving greater convenience for their investors.
To set up real-time direct debits, investors first visit SAXO’s investment platform, and are guided to their respective bank portal. Investors then choose which account to debit funds from, and authorise the direct debit mandate online via a secure authentication process. Mandates are received on a real-time basis. This has completely eliminated the need to fill in and mail paper forms per the traditional direct debit process.
Once the direct debit mandate has been set up, an API call automatically initiates funds transfers from the customer’s nominated account at regular intervals via FAST, Singapore’s real-time payment rail, which credits funds to the customer’s investment account with SAXO in mere seconds. This has provided a fully-automated means of funding investment accounts in considerably less time. Additionally, SAXO can also initiate direct debit status inquiries via API to gain on-demand updates on payment settlement status.
Altogether, the solution has created a fully-automated end-to-end process for the funding of investment accounts, from direct debit authorisation, status updates, and transfer of funds to accounts, that takes place entirely within SAXO’s investment platform.