TechFin player DigitalX has launched a new same-day settlement service for customers using its Sell My Shares website.
The website provides one-off share trading services, enabling shareholders to quickly – and easily – sell their shares without the need to open a traditional stockbroking account.
Traditionally, share trades of ASX-listed shares settle on a T+2 basis (two days post the trade), but the same-day settlement service (T+0) enables users to avoid the standard two-day wait period for settlement of ASX trades by receiving funds for their share sale on the same day, for an increased service fee.
It’s a clever solution where the company puts the cash on its balance sheet to work to generate a return.
Currently limited to trades of $25,000 and below in value, the funding required to bridge the two-day settlement period for customers is being provided by DigitalX (ASX:DCC), enabling the company to realise an attractive return on its existing cash reserves than it is able to generate from bank interest.
Timely service for deceased estates and inheritances
Since 2015 the business has helped thousands of customers quickly and easily sell over $400 million worth of shares, and DigitalX Chief Product Officer David Beros, said the service is perfect for anyone who finds themselves owning shares that don’t have a separate account and don’t want to go through the effort of opening one.
“Usually that’s deceased estates, inheritances, IPOs, demutualisations and the customers can use the website to process that share sale,” he said.
“We launched the product after talking to customers using our express service which highlighted that getting their money faster is hugely valuable for people who have an urgent need.
“So, we soft launched and tested it with a couple of customers and then did the full rollout just a few weeks ago, and it’s already generating revenue.”
Sell My Shares is also scaling its ability to process deceased estate share sales for both lawyers and executives. Estate administration can be a complex and overwhelming process but dealing with Sell My Shares eliminates the complexity to streamline the process with ease and efficiency.
DigitalX Chief Executive Officer Lisa Wade said: “Along with the acquisition of Sell My Shares, the DigitalX team has been dedicated to executing the product growth strategy, driving new revenue streams and innovating to meet customer needs and demands. The same-day settlement service is a clever solution through which we can put the cash on our balance sheet to work to generate a return.”
This article was developed in collaboration with DigitalX Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.