Hargreaves Lansdown (HL) has selected Ecospend, the UK’s leading Open Banking provider, to provide a “pay by bank” service for its clients. Ecospend’s solution will allow HL’s clients to make payments directly to their HL accounts more easily and securely and without the need for cards.
The payment journey removes the need to enter card details when adding money to an account, significantly reducing data entry errors and card fraud risk. The payment is authorised via the client’s chosen online banking service (in app or website) typically using biometric ID, creating a seamless and secure experience.
The account to account ‘pay by bank’ method also bypasses card networks and interchange fees which brings cost savings as well as efficiencies - the automated user experience removes the risk of human error and saves the time taken to reconcile manual bank transfers.
After assessing the Open Banking market in February, Hargreaves Lansdown selected Ecospend based on the quality of its technology and services and the robustness the solution has demonstrated through its partnership with HMRC.
George Rodgers, Senior Product Manager, Hargreaves Lansdown:
“Offering an Open Banking payment method is a step change in the payments experience that Hargreaves Lansdown offers its clients. Our clients can expect a simpler payment journey as well as instant settlement for deposits and withdrawals compared to days under the current system. Our adoption of Open Banking is a key milestone in our digital transformation strategy and we will continue to use the best available technology to benefit our clients”.
James Hickman, CCO, Ecospend:
“This is an important step forward for the Open Banking industry given the importance and reach of Hargreaves Lansdown. We are thrilled to be working with the market leader in wealth management to deliver a new solution that is both a natural replacement for cards and the perfect response to changing consumer behaviours and digital adoption.
“We are very excited to introduce so many new consumers to a simpler, faster and more secure way to pay. And this is just the tip of the iceberg. Open Banking offers service providers an opportunity to serve customers with a range of solutions that are more convenient and secure, from payments to digital authentication and instant credit checks.”