Nationwide joins forces with Moneyhub for real-time funding of new savings accounts
UK-based Nationwide Building Society has partnered with open data and payments platform Moneyhub to enable new and existing members to fund a new savings account from day one, using Open Banking technology.
Nationwide has developed the real-time savings account funding in conjunction with Moneyhub, in which it is now a minority stakeholder, having invested in the fintech.
The new process uses Moneyhub’s Open Banking payment initiation service (PIS) technology, which connects savers directly to their current account or savings account held elsewhere in order to sweep the money into the newly-opened Nationwide account.
Members previously had to wait several days until their account was fully opened before they could transfer the money needed to meet the account funding requirements, which resulted in around 8% of accounts being closed each month when members forgot to credit it, according to Nationwide.
The new process, which makes the account funding part of the application process, will initially be available for the building society’s fixed rate online bonds, before being rolled out to other products.
Dan Scholey, CCO at Moneyhub said: “Open Banking enables frictionless payments, easy connections and endless possibilities for consumers and providers of financial services.
“By using Open Banking technology, we can give Nationwide members the ability to seamlessly sweep their money to where it can work the hardest to ultimately improve their long-term financial wellness.”
Daniel King, chief digital product owner at Nationwide Building Society, added: “By partnering with Moneyhub and using Open Banking technology we are able to streamline the process and, in doing so, allow our members to start earning a higher rate of interest on their money right from day one.”
In July, Moneyhub partnered with financial planning and banking app Pennyworth to develop a new service for “aspiring-affluent” consumers, which uses a combination of Open Banking, Open Finance and machine learning.