WBS extends Quai Digital partnership for fractional dealing

WBS has agreed a five-year extension of its partnership with Quai Digital, adding fractional dealing to the services available through the relationship. The companies said the capability is intended to give Quai Digital and its partner firms broader access to investment products at lower entry points.

The agreement applies to Quai Investment Services, or QISL, which is part of the Quai Digital group, as well as the firms that work with it. WBS announced the extension on July 3, describing the deal as a continuation of a commercial relationship that began in 2017.

WBS provides dealing, custody and technology services to the UK investment industry. Quai Digital uses the partnership to support savings and investment products for the firms and customers it serves, according to the company announcement.

Fractional dealing added to the platform

Fractional dealing allows an investment platform to support orders in portions of an asset rather than requiring clients to buy a whole unit. In practical terms, that can reduce the minimum cash amount needed to gain exposure to certain investments, depending on the product and platform rules.

WBS and Quai Digital said the new capability will help Quai offer more flexible savings and investment products. The companies did not disclose financial terms of the renewed agreement, implementation timelines beyond the five-year extension, or the specific investments that will be available through fractional dealing.

For wealth managers, advisers and investment platforms, fractional dealing can be part of a wider move toward lower minimums and more configurable client portfolios. The announcement frames the capability as a way for Quai Digital to serve a broader client base, while relying on WBS for the underlying dealing, custody and technology infrastructure.

Executives point to growth plans

Sam Blackburn, director and head of client at WBS, said the extended agreement and Quai’s fractional dealing service reflect the two companies’ growth plans and their focus on delivering new investment infrastructure to the market.

Tony Webb, chief executive of Quai Digital, said WBS provides infrastructure that supports Quai’s expansion. He cited WBS’s experience in integrated and scalable services, as well as its practical support, as reasons for the partnership.

Webb also said the addition of fractional dealing would differentiate Quai’s offering by allowing it to support a wider set of clients and more flexible investment journeys.

The renewal extends a relationship of nearly a decade between the two firms. According to the announcement, the companies see the agreement as a basis for continued product development and growth over the next five years.

This story draws on original reporting from Finextra Research.