Building Trust with Star Ratings: Wealthify and Defaqto
12 October 2020
Defaqto’s Digital Wealth Management Star Rating measures important features such as the investment performance of its plan types and the ability for customers to choose an investment product that is matched to their needs. It also evaluates the tools created to help customers make their investment decisions, such as the ‘predicted value’, and assesses how fair and transparent they are with customers about issues like risk and the cost of investing.
Building brand trust
Since licensing its rating, Wealthify has incorporated the use of its Defaqto 5 Star Rating logo prominently across all of its marketing initiatives. With 75% consumer awareness, Defaqto can help to further bolster consumer confidence. For many, digital wealth management is a new concept that has historically appeared complex - Star Ratings help to reduce complexity and breakdown jargon for consumers.
Michelle Pearce-Burke, CIO and Co-founder at Wealthify says: “As a financial services brand, trust is an extremely important factor and we believe trust must ultimately be earned, but when customers are initially looking at our website it certainly helps to see a well-known and independent accreditation, such as that which Defaqto provides.
“Defaqto is highly recognised by consumers and gives our brand an additional layer of credibility and trust, which is especially important for a relatively new financial services proposition. Whilst not exclusively attributable to Defaqto, since licensing the Star Rating our new customer numbers are scaling at a faster rate.”
Remko Bijtjes, Commercial Director at Defaqto, adds: “In an increasingly competitive financial services market, differentiating your product is a must. Defaqto Star Ratings are an unbiased assessment of quality helping people to instantly understand where a proposition sits within the market. Our Star Ratings support new business acquisition and customer retention by enabling organisations to communicate the quality of their product easily and with impact.”
A robust process
Defaqto Star Ratings are independent expert ratings based on facts, not opinions; they provide an unbiased assessment, using a detailed, robust and transparent process derived from both quantitative and qualitative features.
Defaqto’s expertise has developed as a result of more than 25 years of financial data collection and analysis. Their teams consider a wide range of sources to identify the key attributes that make up a financial product.
Reflecting on the Defaqto Star Rating process, Pearce-Burke said: “to obtain our rating we went through a rigorous process, however it was the thoroughness of Defaqto’s assessment process that initially appealed to us. It not only involved submitting data, but we were also required to attend an interview with the team, including an investment consultant. However, we appreciated the level of scrutiny as it means it is a rating worth having. We knew from the start that they would produce a fair and accurate rating of our service when compared to our peers.”
Launched in April 2016, Wealthify provides a simple approach to investing. Available online or via app, customers simply choose how much they want to invest and their preferred investment style, including ethical investment options. Wealthify then builds and manages an investment plan on their behalf. Investment decisions are made by Wealthify’s experienced investment team assisted by smart technology, making adjustments to customers’ plans as regularly as needed to give the optimum prospect of growth.
Wealthify is backed by Aviva and boasts numerous consumer, FinTech, and investment award wins, a 5* Defaqto badge of honour and is proudly is rated as Excellent on Trust Pilot.
Defaqto is an independent financial information and technology business. Its unbiased fund and product information provided as expert Ratings, coupled with its market-leading software solutions helps consumers, financial institutions and financial advisers make better informed financial decisions.
Acquired by The SimplyBiz Group PLC in 2019, Defaqto has been operating for over 25 years and works independently. Defaqto employs over 60 analysts spending 400 hours a day monitoring the market and analysing more than 43,000 financial products and funds in the UK, ensuring that the information provided is accurate and up to date.
Defaqto Star Ratings
Star Ratings allocate a product or proposition a rating of 1 to 5, depending on the quality it offers. With a 4 or 5 Star Rating indicating the most comprehensive offerings in the market.
Available through Defaqto.com and Defaqto’s financial planning software, Engage Core, Defaqto Star Ratings provide an independent and unbiased industry standard for indicating where a product sits in the market in terms of feature quality and comprehensiveness. Consumers and financial advisers alike can see, at a glance, how comprehensive a financial product is.