The news: UK-based Nationwide Building Society’s new open banking service lets customers sweep money into a new current account from their previous current account provider, per a press release.
More on the service: Open banking provider Moneyhub’s payment initiation service handles this feature. When a customer opens their account, they can connect with their previous current account at another financial institution and immediately sweep the money into the new account at Nationwide.
Nationwide took a minority stake in Moneyhub in November 2018 and the two companies collaborated to develop the payment initiation service.
New account funding: Research for our US Account Opening Benchmark found that funding a new account is top of mind for customers. They’re looking for ease and efficiency in this process.
The lack of US open banking regulations makes the account-switching process difficult, but our research shows that customers crave a digital solution. The clunky existing process often leads to frustration and dissatisfaction.
Account abandonment: Account abandonment due to frustration is a widespread issue in the bank account opening process.
The big takeaway: Nationwide’s new feature offers a partial solution to the account abandonment issue that so many banks face, and it also satisfies customers’ desire to quickly and digitally complete the account-opening process.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.