With the launch of stock investing in Europe, we wanted to learn more about the journey and what users can expect from the product. And who better to ask than Product Manager for Stocks, Elise Nunn.
Elise joined the Plum team five years ago, and she has played a key role in some of Plum’s saving innovations like the Splitter.
Now, she’s got stocks on the mind!
Why was it important for Plum to launch a stock investing feature?
There were three main reasons driving the launch of stocks at Plum.
Firstly, it’s a pivotal part of Plum’s mission, which is to make wealth accessible to everyone. We want to help people be financially stable over the long term. Realistically, the only way to achieve this is to leverage a combination of saving and investing mechanisms that allow you to build a diversified portfolio. So, naturally, we explored stock investing.
Secondly, stocks have a ‘face’. For instance, mutual funds or exchange-traded funds (ETFs) are baskets of stocks from different companies or bonds. You can pick a theme but outside of that, you have little control over what’s going on, which is perfect for some investors.
However, there are people out there who want to back companies they’re familiar with or companies they’re interested in. That’s what they get with stock investing. Stock investors are also an integrated part of the company, becoming shareholders. They get notified about shareholder voting and receive dividends: there’s just more involvement.
Lastly, at Plum, we give the people what they want... And they wanted stocks! In Europe in particular, there isn’t a sea of investment tools available to people. When users started asking us about stocks, it made sense to start offering them.
What makes Plum’s stock investment product different from the rest?
At its core, stock investing with Plum is accessible for everyone. But it goes beyond just that.
We’re also a friendly face for our users. We want to fill them with confidence, whether they’re just starting out or have been investing for years. One of the ways we do this is by encouraging long-term investing and the concept of ‘time in the market’ rather than timing the market.
It’s a somewhat stress-free approach to investing. We don’t bombard people with messages whenever stock prices dip or rise. Mainly because it’s not helpful. Price alerts are just a single movement in the market that has caused the price to change, and they often encourage knee-jerk reactions.
Instead, we focus on long-term investing and riding the wave. By keeping their money in the market, people should see it pay off in the future.
We also designed the product in a way that isn’t intimidating for users. For instance, we haven’t overloaded the screens with an abundance of analytical details. Instead, we’ve covered the essentials, giving users the information they need to make informed decisions without any of the noise.
Capital at risk.
What would you say to those who are on the fence about stock investing?
I think it’s important to remember that stock investing is just about adding another trick to your toolkit. Diversifying your portfolio is the end goal.
I’d also make it clear that you don’t need to invest loads of money. People can invest whatever makes them feel comfortable, even if it’s just £5 a week. It’s all about introducing these healthy behaviours and diversifying your portfolio. It’s not about taking a high-risk leap by investing a lump sum and hoping it will pay off.
It’s also crucial to understand why you’re investing: what is your goal? If you want to invest for the long term, you don’t need to become an analytics expert, examining what’s going on in the stock market every day. You can simply start small, invest regularly and let the money move as it will.
Capital at risk.
What does the future hold for Plum’s stock investing feature?
Our stock investing product is still in its infancy, so users can expect a lot more additions in the coming months.
The next stop on the roadmap will be widening our offering of stocks and adding more companies from different markets. We’re also working on incorporating more automation to make the process of buying stocks simpler. Of course, users will still need to research where they’re putting their money before investing.
In the same vein, we want to ensure that the product is embedded in the app intuitively. So the Stocks Squad is always looking out for ways to make the product even more user-friendly. And user feedback really helps in this case.
As you can see, there’s a lot going on behind the scenes! But ultimately, all of these projects are centred around the idea of making stock investing with Plum more straightforward for our customers.
Capital at risk.
Stock investing with Plum is now available in Europe
Stock investing with Plum recently landed in France, Spain, Belgium and Ireland.
That means even more people can start building their portfolio with a choice of over 500 US companies to invest in, including the likes of Tesla, Meta and Amazon. And they can start with as little as €1. As Elise mentioned, investing with Plum isn’t intimidating, so it’s the ideal tool for both novices and experts.
If you want to learn more about stock investing with Plum, check out our website. Alternatively, download the app today to get started.
Remember, as with all investing, your capital is at risk and the value of your investments can go down as well as up.Download Plum