Emirates NBD, a leading banking group in the MENAT region, has introduced fractional bonds on its award-winning mobile banking app, ENBD X. This innovation makes Emirates NBD one of the first financial institutions in the region to offer fractional bonds to individual investors.
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The ENBD X app now allows customers to invest in fractional bonds across international bond markets with a minimum investment of just USD 25,000, significantly lowering the usual USD 200,000 entry barrier. This feature is part of Emirates NBD's ongoing enhancement of its digital wealth platform, which has 96% active users.
Fractional bonds provide several benefits, including the ability to diversify investments across different bond issuers, sectors, and maturity periods. This helps in enhancing the stability and resilience of investment portfolios. Investors can also customize their bond portfolios to align with their specific goals, choosing bonds based on risk tolerance, desired yields, and other criteria. Additionally, fractional bonds offer increased liquidity, allowing investors to easily liquidate their investments when needed.
The ENBD X app facilitates searching for bonds by various criteria such as yield, coupon rate, maturity type, and bond category, with real-time price updates. Customers receive instant push notifications upon transaction completion and can monitor their bond portfolios, including accrued interest and upcoming coupon payments, in real-time.
Marwan Hadi, Group Head of Retail Banking and Wealth Management at Emirates NBD, stated: "We are committed to enhancing our customers’ banking experience by continuously introducing innovative digital products and services. The addition of fractional bonds on ENBD X exemplifies this commitment by combining our business and technology expertise into a distinctive and scalable solution."
Ammar Al Haj, Group Treasurer and Head of Global Markets at Emirates NBD, added: "The introduction of fractional bonds on ENBD X’s digital wealth platform marks a pivotal moment in increasing access to financial markets. With this new offering, we empower investors to participate in the international bond market with as little as USD 25,000, unlocking new opportunities for wealth creation and portfolio diversification."
