Following the close of Tuesday's session, the publicly traded fintech company XTB (WSE: XTB) unveiled its product roadmap 2024. It indicates that the company, originating in the FX/CFD industry, is increasingly focusing on passive investments, social trading, and the extensive use of AI technology.

A Leap into Investment Plans and Social Trading

Central to XTB's 2024 vision is the expansion of its investment offerings. The company has already made strides by integrating fractional shares and passive Investment Plans into its app, a feature now available across multiple markets, including Poland, Germany, Spain, Portugal, Romania, Czech Republic, Slovakia, the UK, Italy, and the MENA region. This will soon extend to the xStation platform in either the first or second quarter of the year. The shift towards passive investing is evident, with the company reporting significant growth in this area.

"At this stage, I can already say that 2024 will be a historic year, in terms of the number of new products in the XTB’s offer. We have been preparing for this moment for a long time, as evidenced by our active efforts in developing the Product and Technology Department," Omar Arnaout, the CEO of XTB, commented for Finance Magnates.

Furthermore, XTB is set to present social trading products. The platform will allow users to monitor the movements of top investors, offering rankings and categorizations based on risk profiles. Real-time notifications about trading activities complement this initiative.

"Social Trading will be a new functionality within our trading platform helping investors in making calculated investment," Arnaout explained.

Bonds and Virtual Wallets with Multi-Currency Card

The roadmap has revealed plans to broaden fixed-income offerings, particularly by making bond investments more accessible. Utilizing a mechanism similar to fractional shares, XTB aims to allow investments in fixed-rate bonds starting from EUR 10. The portfolio will include a mix of government and corporate bonds, with a focus on high ESG ratings and secure ratings ranging from AAA to BBB. Notable issuers such as General Motors and Coca-Cola are part of this offering.

Another major development is the introduction of a multi-currency virtual wallet accompanied by a multi-currency card. This feature promises instant payments between XTB accounts and real-time market settlements, including local instant payments . The wallet will support over 100 currencies, providing users with full control over their expenses and real-time notifications for all transactions.

"Hopefully by the end of the year,, we will introduce solutions aimed at further expanding our customer base. The first will be a virtual wallet with a multi-currency card. With the introduction of this solution, XTB will become a comprehensive platform for managing finances," Arnaout added.

Asked who XTB is working with to release the card, the CEO did not answer directly. Arnaout only revealed that it will be a "renowned global player" that will allow the new product to be offered "in every part of the world."

Tax-Efficient Retirement Products for Poles

Finally, XTB is responding to client demand for tax-efficient retirement products in its home markets, including local "IKE" and "IKZE" accounts. IKE stands for "Individual Retirement Account" and is a personal pension savings account offering tax advantages. IKZE can be referred to as the "Individual Retirement Security Account," which is similar to IKE and is designed for retirement savings, but it has different tax benefits.

The company has emphasized a commission-free approach for stock investments up to EUR 100,000 monthly, aligning with its broader fee structure. Data from the Polish Financial Supervision Authority indicates a growing interest in these products, despite their current underutilization in Poland.

However, brokerage houses have seen substantial growth in assets under management in these accounts. In the case of IKE, the largest increase in asset value was recorded in accounts managed by brokerage houses (at the end of H1 2023, they amassed PLN 5.5 billion, which represents an increase of 24% compared to the end of 2022).

"XTB is a global company so every product we introduce is analyzed from the global perspective and our retirement offer will not differ so hopefully in every country where such products exist we will think of dynamic implementation," Arnaout commented.