By Oliver Smith on Tuesday 30 August 2022
Starting with the bank’s fixed-rate online bond, sweeping will be rolled out more widely later this year.
Customers signing up for Nationwide’s fixed-rate online bonds can now use the latest open banking sweeping technology to fund their accounts.
Enabled by the recent launch of variable recurring payments (VRPs), applying customers can now instantly set up a payment into their Nationwide savings account without waiting days for the account to be fully opened.
Previously around eight per cent of Nationwide’s fixed-rate online bond accounts would be closed as savers simply forgot to fund their accounts within the required 14 days.
The new sweeping feature will be gradually expanded to Nationwide’s other savings accounts and was created in partnership with Moneyhub, the open banking provider that Nationwide invested in back in 2018.
“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,” said Nationwide’s chief digital product owner Daniel King.
“ 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.”
Nationwide’s launch marks one of the first mainstream uses of VRPs, with the deadline for banks to implement the technology only happening on 1 August.
“Open Banking enables frictionless payments, easy connections and endless possibilities for consumers and providers of financial services,” said Moneyhub CCO Dan Scholey.
“By using Open Banking technology, we can give Nationwide members the ability to seamlessly sweep their money to where it can work the hardest to ultimately improve their long-term financial wellness."