UK-based Open Banking provider Ecospend has become the innovation partner of digital marketplace and industry network PIMFA WealthTech, to deliver proof-of-concept ‘Pay by Bank’ solutions to its members.
PIMFA WealthTech, which is part of the Personal Investment Management and Financial Advice Association (PIMFA), the trade association for the wealth management, investment services and the investment and financial advice industry in the UK, was established to encourage collaboration between wealthtechs and wealth management firms.
Ecospend was chosen by PIMFA WealthTech “based on the quality of its technology and services” and the “robustness” of its solution, “already demonstrated through its partnership with HMRC”.
Ecospend’s solution will allow clients of PIMFA WealthTech members to make payments directly to their accounts without the need for cards.
Keith Philips, executive director of PIMFA WealthTech, said: “We are delighted to welcome Ecospend to PIMFA WealthTech and believe their ‘Pay by Bank’ technology solution will prove very popular within the wealth management community.
“Not only does the solution substantially reduce the risk of fraud, it also significantly reduces interchange costs for businesses and provides an instant transfer of funds.”
He added: “I’m sure many wealth managers and investment platforms will take an immediate interest in this solution and look forward to working with Ecospend in offering this solution to the industry.”
The following month, Ecospend reported that more than £2.3 billion in Self Assessment payments were made to HMRC using its ‘Pay by Bank’ technology, ahead of the 2023 deadline – an increase of 64% on last year.
James Hickman, chief commercial officer at Ecospend, added: “We are thrilled to be working with PIMFA WealthTech to develop cutting edge Open Banking payment options for its members.
“This is a great opportunity for the entire industry, given the importance and reach of PIMFA WealthTech and we are thrilled to be working with the market leader – it’s the perfect response to changing consumer behaviours and digital adoption.”