Lightyear Bets Automation Can Fix Europe’s Investment Follow-Through Problem

Lightyear
rolled out an automated investing feature that lets users schedule recurring
contributions toward specific financial targets, responding to data showing
most Europeans fail to follow through on their financial plans.

Lightyear Adds Automated
Feature as Europeans Struggle to Meet Financial Goals

The
platform’s new tool allows investors to build portfolios of stocks and funds
aligned with particular goals, then automate regular purchases into those
holdings. Users can set custom allocations for each investment and establish
recurring contributions on their preferred schedule.

“Plans
support recurrently placing money in the stock market, helping easily create a
habit out of investing – simple enough for everyone to get started and stick
with for the long term,” said Martin Sokk, CEO of Lightyear.

The feature
supports fractional purchases of European stocks and exchange-traded funds,
which recently became available on the platform. This allows investors to
divide smaller amounts across multiple holdings rather than needing enough cash
to buy full shares.

Follow-Through Rate Lags
Intentions

A report
from the European Financial Planning Association found that while 65% of
respondents have long-term financial goals and 86% say financial health matters
to them, only 15% of those with goals actively work toward them. One-third of
survey participants rated their investing knowledge as low, and 29% said the
same about pensions.

The study,
which gathered responses from more than 14,000 adults across 10 European
countries between April and July of this year, pointed to confidence gaps as a
barrier to action. Many respondents acknowledged understanding basic budgeting
and saving concepts but struggled with investment products and retirement
planning.

Lightyear’s
internal survey of more than 2,000 customers showed similar patterns. Passive
investing strategies dominated among users, with 60% citing that approach as
their primary method. Most – 88% – said they invest toward set goals, and over
one-third maintain a mix of short-, medium- and long-term objectives.

Competition Grows for
European Retail

The product
launch comes as digital investment platforms compete for retail customers
across Europe. Lightyear, founded by two former Wise employees in 2020, has
raised $58 million from backers including Nordic Ninja, Lightspeed Venture
Partners and Mosaic Ventures. Individual investors in the company include
Richard Branson and Wise co-founder Taavet Hinrikus.

“Different
financial goals require different approaches – in terms of instruments used to
reach them, but also in how often and for how long you invest for them,”
Sokk said.

Paul
Murphy, a partner at Lightspeed Venture Partners, added the European research
highlighted demand for simpler options.

5″It’s
clear people want to be financially successful and secure their futures, but
it’s been made too difficult by expensive solutions which turn people to
believe financial wellbeing is far out of their reach,” he said.

The
Estonian Financial Supervision Authority regulates the company’s European
operations, while the U.K. Financial Conduct Authority oversees its British
arm. Lightyear maintains offices in London and Tallinn.

Back in
July the fintech secured $23 million in Series B funding while reaching $1
billion in customer assets under management (AUM).

This article was written by Damian Chmiel at www.financemagnates.com.



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