Tandem partners with Stripe to launch auto savings, enabled by Open Banking

Source: Tandem press release

Tandem Bank announced that their new ‘Auto Savings’ service will be powered by global payments platform Stripe, allowing customers to set up rules that automatically move money from their current accounts with other providers to a savings account with Tandem. Tandem can create sets of saving rules that suit their personal needs, such as rounding any payment up to the nearest pound, to make saving money each week effortless.

Customers will be able to use Auto Savings through Tandem’s banking app, which can aggregate financial data from across all of a user’s accounts to tell them how much free spending money they have and offer them personalised feedback on how they’re managing their money. This latest tool uses this same technology to calculate areas where savings can be made, making it easy for customers to build towards their financial goals. Pay in whenever and however you want through Stripe – Tandem will do the heavy lifting.

Programmatic money movement enabled by Stripe Connect and Open Banking

Connect, Stripe’s routing engine for complex fund flows, is powering the new Auto Savings feature, enabling Tandem to programmatically segregate client funds (deposited money from customers) from their own operating funds in a compliant manner.

Tandem is also an early adopter of the Account Information open banking capability, where their customers can grant Tandem access to data from a third party bank account. Tandem uses this data to generate insights for customers, such as the optimum amount per month to place in an Auto Savings account.

Iain McDougall, UK and Ireland Country Manager, Stripe says:

“Building on infrastructure that powers the programmatic movement of money will be increasingly seen as a differentiator for technology companies, emerging fintechs and even established financial services providers. By providing this infrastructure, Stripe is helping Tandem to extend their product in new directions at a faster pace, which is a significant competitive advantage.

“Auto Savings will make it easier and faster for Tandem’s customers to save and we look forward to continuing to work with such an innovative, tech-first bank to advance the state-of-the-art of banking.”

Ricky Knox, Tandem CEO, adds:

“Auto Savings is a big step for banking. It will bring together smart, flexible tech and a competitive rate of interest. As with any new product, it’s crucial that any partners are reliable, take their customers and data seriously and share our vision for the future of finance – Stripe tick all of those boxes.

With this latest savings solution we wanted our customers to be able to pay money into their Tandem account without any hassle. A lot of other banks require you to make manual transfers or standing orders, which can make the whole process of saving a chore. With the help of Stripe, we want to make it as quick and easy as possible to save small and often straight from your debit card.”