Tandem’s development of its savings account provides its users customised feedback on how to improve their saving habits, enabled by data provided through Open Banking.
Tandem Bank has announced the launch of its Auto Savings service following a partnership with payments giant Stripe. The feature enables the bank’s customers to automatically transfer money from their current account to their Tandem savings account and receive personalised financial advice.
As it becomes increasingly common for individuals to have more than one bank account, Tandem brings together the user’s numerous bank accounts in to one interface. This simplifies calculating the customer’s total spending in a given month.
Powered by Stripe, Tandem’s account holders can now create customised rules to automatically pay in to their savings account from their current accounts. The rules include rounding the user’s spending to the nearest pound, with the difference being transferred directly to their savings account with Tandem.
Tandem also provides its users with feedback on how they can manage their spending by collecting data from their other current accounts, only made accessible through Open Banking. Tandem’s customers grant permission for Stripe to access the data from a third-party bank account for which they forward on to Tandem. Using this data, Tandem calculates an optimal figure the customer should be depositing in their Auto Savings account to reach their financial goals.
Ricky Knox, CEO at Tandem, says other banks only offer manual transfers and standing orders which can be seen as a chore, resulting in customers becoming reluctant to save. Therefore Tandem hopes an automated and customised transfer will encourage people to save, even if it's only small deposits.