UK-based open banking provider Ecospend has joined PIMFA WealthTech, the digital marketplace and industry network to boost collaboration and innovation within wealth management.
The deal sees Ecospend deploy its proof of concept “Pay-by-Bank” solution to PIMFA WealthTech members. This will allow members to make payments directly to their accounts more easily and securely and without the need for cards.
The Pay-by-Bank solution initiates a direct bank transfer, removing the need to enter card details when completing a payment. This reduces the chance of data entry errors and card fraud risk for wealth management clients.
A payment is authorised via the client’s chosen online or mobile banking service, typically leveraging biometric ID to make a secure payment experience.
This solution also bypasses card networks and interchange fees bringing cost savings and efficiencies. It also removes the risk of human error and saves time to reconcile manual bank transfers.
PIMFA WealthTech executive director Keith Philips 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. 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.”
Ecospend was recently acquired by global payments platform Trustly.
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