Data and ratings provider Defaqto has extended its Star Ratings to cover Digital Wealth Management.

The company, owned by SimplyBiz, launched its 2020 Star Ratings this week with news the service was being extended to cover Digital Wealth Management products and credit cards.

The Star Ratings are widely used across the industry.

Defaqto researches and analyses more than 43,000 financial products across general insurance, banking and protection and wealth management.

Defaqto says the growth of digital wealth management has prompted the move.

Its digital wealth management star ratings, available on Defaqto’s website, cover firms including Wealthify, Munnypot, Standard Life, Fidelity and others although not all firms in the sector are covered.

A Star Rating indicates the quality and comprehensiveness of the product with each product assigned a Star Rating on a scale from 1 (most basic) to 5 (most comprehensive). Defaqto aims eventually to rate every product on the market.

Brian Brown, consumer finance expert at Defaqto, said: “We look solely at the products and not the provider so the consumer can be assured that they have a resource that helps them select financial products based on quality and not just price alone.

“Our Star Ratings move away from ‘good’ and ‘bad products’, helping consumers select the most appropriate products for their needs.

“There has been widespread coverage of consumer reviews over the last 12 months and people must be made aware of the differences between the ratings and reviews available to them. Defaqto shouldn’t be confused with consumer reviews that apply a score based on opinion.”