Since our launch in September 2015, we have proven our ability to innovate in the UK savings market, which has been recognised with various savings awards.
We now have around 50,000 savings customers who are making the most of their money through the variety of products we offer: fixed term and easy access accounts, notice accounts and a variety of cash Isas — and a Feefo score of 4.5 stars.
A total of 50,000 customers may not sound like a huge amount, but as our average balances are way above average, they are enough to fund our entire allowable loan book. As we offer some of the highest rates in the market, we tend to be particularly appealing to higher-earning demographics who have tens of thousands of pounds to deposit. Therefore, since the start of the year, we’ve been looking at how we can start to bring our savings platform to a wider demographic and enable younger customers, who may not have as much to save, to still make more from their money than they otherwise would.
Our first example of this type of partnership launched earlier this year with Monzo, where we provided our savings products to its two million-plus customers. Monzo customers have the option to deposit money in a ‘normal pot’, which is good for setting aside smaller amounts of cash and is useful if the customer needs to access the cash instantly, but it doesn’t pay interest. Through this partnership, however, Monzo customers gained access to our savings platform, enabling them to choose from a range of saving products to suit their needs and obtain a much higher interest rate than they’d get from a traditional high street bank. They also get the added benefits of ease, convenience and usability that come with managing their money in one place, not to mention the 24/7 customer service available through Monzo’s app.
Earlier this month, we announced another very exciting new partnership with Moneybox — the financial app that helps people save and invest. The partnership saw Moneybox launch a new cash lifetime Isa, powered by us, offering a market-leading interest rate of 1.4% AER variable to their 200,000 customers. As the product is powered by us, customers get the benefit of the FSCS protection up to £85,000. The product is designed to help customers who are saving for their first home as for many young people, getting on the property ladder continues to feel like a pipe dream. The government’s introduction of the lifetime Isa in 2017, with its 25% bonus up to £1,000 per year, was a welcome step for millennials, but surprisingly few banks have chosen to offer it. We, therefore, saw this as an exciting opportunity to partner with an award-winning fintech and highlight the importance of financial literacy, while streamlining difficult processes and releasing a market-leading interest rate that helps customers save for their first home.
Every week, I personally meet fintechs from across the UK (and now globally), so we’ll definitely be announcing more partnerships in due course. If a fintech has customers (individuals or businesses) who deposit with them, but who aren’t currently earning any interest on those deposits, we’d love to speak to them. If they want to give those customers peace of mind that their money will be safe up to £85,000, we can help as our banking licence means we can offer FSCS protection. If a fintech which has a banking licence (such as Monzo) wants to offer a broader range of savings products to its customers in its marketplace, reach out and I’d be delighted to have a conversation.
For me, the key to a successful partnership is finding other players who are as passionate, fast-moving and customer-centric as we are. This has been central to the success for the Monzo and Moneybox partnerships and will be essential for future partnerships.
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...