Nationwide Building Society has improved the savings account opening process through open banking payments technology platform Moneyhub.
Its new process allows new and existing members to fund the account straight away as part of the application process.
Previously, members would have to wait a few days until the account was fully opened before they could transfer the money needed to meet the account funding requirements. Each month, this led to around 8% of accounts being closed as members would forget to credit the account, Nationwide said.
This new process will help members make more of their money as with the funds being paid into the account from day one, members will start earning interest straight away at the new, likely higher, rate of interest.
Initially, the process will be available for Fixed Rate Online Bonds and will be rolled out to other savings products in the future.
Nationwide Building Society chief digital product owner Daniel King said, ?We all lead increasingly busy lives, so it easy to see why so many people forget to go back and fund their new savings account after it been opened.
?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.p>
The new process, which was developed in conjunction with Moneyhub, uses open banking payment initiative service technology to connect savers directly to their current account or savings account help elsewhere in order to sweep the money.
Speaking on the partnership, Moneyhub CCO Dan Scholey 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.p>
Nationwide has invested in Moneyhub and is a minority stakeholder.
Earlier in the year, Nationwide partnered with Kinetic Insurance, a wearable device company, to deploy wearables for workers compensation insurance.
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