AJ Bell, a UK fund supermarket, is looking to allow Facebook Inc (NASDAQ:FB) users trade shares through the Facebook Messenger service.
Trading through Facebook (FB)
If you thought Facebook Inc (NASDAQ:FB) already ran your life, look away now. The social media giant will soon be adding another element of daily life to its site.
AJ Bell is a British budget broker that has said it hopes to launch the trading service before September this year. Customers will liaise with a bot that will be able to buy and sell shares and quote prices.
Tim Huckle is the digital strategy director at AJ Bel and said “we have created a secure authorization framework between the Facebook Messenger platform and AJ Bell Youinvest (its online trading platform).” It comes as brokers attempt to reach an broader audience, especially among the millennials. Facebook Inc (NASDAQ:FB) has an estimated 900million active users.
Huckle actually executed an order for 500 shares and posted a video online showing the interaction. In the future they expect to add the buying and selling of funds as well as single name shares.
Users can access their accounts via Messenger, see information on various (current and historical) stock prices and request a quote, before deciding to execute their order. Following the transaction, you can see a summary showing any FX costs and dealing charges.
The service is not yet open to the public, as first the bot needs approval from the powers that be at Facebook, much like any app needs a green light before it can be added to the Apple app store.
Potential security issues
With all electronic business, cyber security is a big issue. They hope to allay fears by adding a one-time PIN sent to the registered mobile phone on login, as well as a standard login password, but currently Messenger does not have end-to-end encryption.
There is not thought to be any regulatory stumbling blocks as trading through Facebook Inc (NASDAQ:FB) or any other social media is in essence no different to trading through a website or mobile app.
The bot future
The bot comes as the online social network site opened its AI capabilities to businesses in April.
Bots, which had been called a “new paradigm” by the head of Messenger, David Marcus and Microsoft CEO, Satya Nadella has stated “bots are the new apps” are seen as the next big step.