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Open Banking: use cases such as microinvesting and microsaving

You might think that micro-saving is very similar to micro-investing, but there are certain divergences. Micro-investing has some different challenges, starting with the fact that the investment vehicle varies in price, which means that over time you may have more money than you contributed and, in other cases, you may have less.

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Banks and insurers seek barriers to entry with micro-investment

Many banks and insurance companies are looking for ways to get their clients/users to start investing part of their savings. Many users make the typical mistakes that we all make when we start to value investing.

  • Not diversifying in the investment vehicle and shifting all savings to a single asset.
  • Do not diversify at the time of entry and contribute the entire amount at a single point in time.

The result in this case is binary: If the investment goes up from that moment we will have a happy client but if it goes down we will have a dissatisfied user, who will probably redeem his investment and who will not dare to invest again because it is too risky.

Problems solved by micro-investing and open banking

The first step to lower entry barriers is to use an investment vehicle that allows diversification, with a very low minimum contribution (ideally 10 Euros) and that allows automatic contributions.

In Coinscrap Finance we have collaborated in the development of the  Saving Plan Cling Cling by CASER seguros in which, in a digital way, it is possible to contract a unit linked with 3 portfolios that adapt to the risk profile of each user. Once the monthly contribution is configured, the contributions can be increased through savings rules in which the user can select to round up the purchases made with his card thanks to open banking.

At Cling Cling there are several ways to accelerate savings:

  • Round up your purchases and contribute the pennies you have left over.
  • Save a % of your paycheck every time you receive it.
  • Receive automatic cashbacks for purchases made in your partner network.

In this way CASER is allowing its users to diversify in the product and diversify in the input thanks to small contributions on a regular basis by the savings rules that the user has configured. The result is a simple way to #micro-invest by steadily increasing assets without taking on large risks.

This Thursday, March 17, we will chat with Daniel Blanco in a webinar in which we will share the benefits of #micro-investment to increase the savings ratio of users in insurers. Follow us in Linkedin  not to lose it and to consult the Cling Cling use case.


David Conde Sayans

Co-founder and CEO of Coinscrap Finance, David has 10 years of experience within private banking and as an advisor to financial institutions. He is an European Financial Planner certified by the EFPA. As CEO, David leads the team behind Txstockdata’s flagship product, Senseizero. Senseizero is a platform that turns big data from the Internet into trading opportunities.

Daniel Blanco

Director of Life and Pension Business – Individuals at Caser Seguros.

Previously, she has worked 10 years at BBVA Asset Management, in functions related to marketing, sales and internationalization strategy. In the last 5 years, he was responsible for digital transformation at BBVA for savings and investment products. In addition, he held the position of Director of the Center of Excellence at El Corte Inglés in the UK for four years.

If you liked this article, don’t miss David Conde’s newsletter, published in LinkedIn and called Open Finance Future

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