Tandem Bank earns its Stripe-s for auto savings
As reported in September, the bank was discussing the possibility of these auto savings rules. Now it’s a reality. It also gives Tandem a double chance to promote its work.
Customers will be able to set up rules that automatically move money from their current accounts with other providers to a savings account with Tandem. The bank can create sets of saving rules that suit users’ personal needs, such as rounding any payment up to the nearest pound.
There are so many UK challenger banks it’s become a bit like a nuclear arms race as they seek to stay ahead.
Iain McDougall, UK and Ireland country manager, Stripe, explains why: “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.”
Ricky Knox, Tandem CEO, has a dig at the rivals: “A lot of other banks require you to make manual transfers or standing orders, which can make the whole process of saving a chore.”
Customers will be able to use auto savings through Tandem’s banking app. Connect, Stripe’s routing engine for fund flows, is powering the new feature, enabling Tandem to programmatically segregate client funds (deposited money from customers) from their own operating funds in a compliant manner.
Tandem says it is also an early adopter of the account information open banking capability, where its customers can grant it 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.
The bank has also called on its 325,000 customers to improve this auto savings functionality and join its beta testing community.
A lot of challenger banks do this – such as Monzo – and Tandem wants users to offer suggestions for improvement, report bugs and discuss savings habits.