New streamlined process developed in conjunction with Moneyhub using Open Banking payments technology.
Around four percent of accounts are closed each month as members forget to meet the funding requirements
New process initially rolled out for Fixed Rate Online Bonds before expanding to other savings accounts in future.
Nationwide Building Society has improved the process for new and existing members opening a savings account by now allowing them to fund the account straight away as part of the application process.
Previously, customers would have to manually transfer their funds by carrying out an online transfer and typing in the destination account number, sort code and reference. Each month, this led to around four per cent of accounts being closed as members would simply forget to credit the account.
This use of the latest cutting-edge technology was able to help customers make more of their money as the funds are paid into the account from day one and customers will start earning interest straight away at the new, likely higher, rate of interest. An open banking transfer simply involves clicking on a link in the Nationwide account journey which enables the customer to access another bank account and approve the transfer instantly.
Since the roll-out, Nationwide has seen a significant reduction in the average time it takes for customers to pay money into a new account after opening it. Before open banking payments technology was implemented, it would take four days but this has now been reduced by 75% to just one day.
Daniel King, Chief Digital Product Owner at Nationwide Building Society said: “We all lead increasingly busy lives, so it’s easy to see why so many people forget to go back and fund their new savings account after it’s 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.”
Dan Scholey, CCO, at Moneyhub 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 move their money to where it can work the hardest to ultimately improve their long-term financial wellness.”
After witnessing Moneyhub’s Open Finance capabilities up close, Nationwide has invested in the fintech as a minority stakeholder.