Solihull-based Paragon Bank is launching a new savings app for UK consumers in partnership with data and payments company Moneyhub.
Leveraging the Moneyhub data and insights platform, Paragon Bank is aiming to help UK consumers make more from their savings, with over 29 million UK adults currently leaving their money in low or zero-interest accounts.
Through this collaboration, Paragon plans to provide Account Information Services (AIS) and Payment Initiation Services (PIS), enhancing the app’s capabilities and user experience.
Spring, launched by Paragon Bank, aims to address the issue of ‘current account coasting’, which causes UK consumers to collectively miss out on billions in potential interest. As well as integrating directly with users’ current accounts, Spring offers a competitive interest rate of 4.30 per cent AER, to compete with the typical rates available from the largest UK banks.
By using Moneyhub’s open banking technology, Paragon can connect Spring with a customer’s existing current account. This integration enables customers to view their current account balance in the Spring app and easily move money between accounts, providing users with full control over their savings. The app also boasts features such as savings pots and unlimited withdrawals.
Paragon’s head of digital proposition, Guy Simmonds, discussed the offering: “The journeys are superb in their simplicity, and we believe they are best in class, particularly with the app-to-app redirects. This partnership with Moneyhub is a key element of our digitalisation strategy, and we are excited to see how it will catalyse further change across our organisation.”
Paragon’s partnership
By providing the connectivity and payments technology, Moneyhub encourages deposits through open banking payments, offering Single Immediate Payments and Variable Recurring Payments (VRPs) to automate savings and further reduce friction.
Paragon Bank says it chose Moneyhub for its breadth of connections, extensive experience, and the innovation that underpins its services. By guiding Paragon Bank in setting up APIs, Moneyhub aims to ensure that Spring offers a slick and seamless customer journey, significantly reducing friction and encouraging users to engage with their savings more effectively.
Dan Scholey, CCO at Moneyhub, also discussed the partnership: “Our collaboration showcases the importance of breaking down barriers to enable consumers to connect with their money effortlessly. This is just the beginning of our journey together, and we look forward to exploring more innovative solutions that deliver outstanding outcomes for customers.”
Paragon Bank revealed that, by leveraging Moneyhub’s expertise, it hopes to continue to deliver a superior savings experience that exceeds customer expectations, and set a new standard in the financial services industry.
