The partnership between Moneyfarm with open banking app Yapily appears to be bearing fruit as he number and size of transactions continue to grow.
The deal between robo advisor MoneyFarm and open banking app Yapily appears to be going well if early results are anything to go by. Since the announcement of the deal in June over 20% of transactions on Money Farm now use the app.
The deal sees Yapily deliver open banking integration with UK and Italian banks. It means customers of online wealth management firm MoneyFarm can now make instant top ups or withdrawals to and from their bank accounts without needing to make card payments.
Within the first week of the deal, 13% of transfers on Moneyfarm were being carried out by Yapily with an average transfer value of £2,500. After three weeks, that had risen to one in five with average transfers hitting the £3,000 mark.
Giovanni Dapra, CEO of Moneyfarm said: “As one of the first digital wealth managers to make use of open banking, we’re proud to see people engaging with it. Clearly, our customers want to take advantage of the benefits that open finance can deliver and importantly, they are recognising the improved, seamless experience across all our products.”
“Our mission is to empower investors to make confident choices when it comes to their finances, arming them with tailored advice and ensuring the process is convenient and stress-free. We’re excited to be able to facilitate a scalable solution to easy bank transfers and deposits, as more and more of our customers embrace open banking.”
Open Banking was designed to make a fairer and more balanced financial system for everyone. Set up by the Competition and Markets Authority on behalf of the UK government it provides third party providers access to customer bank data through the use of APIs. This, it is hoped, will make it easier for fintech pioneers to deliver a range of exciting and inclusive financial services to clients.
“That Moneyfarm has seen such an increase in open banking usage in just three weeks shows that their customers are experiencing genuine value in the service.”
Moneyfarm has been experiencing rapid growth despite the pandemic. This year it saw assets under management increase to £1bn across around 45,000 customers.
Tom Cropper has been writing for us since 2015. Tom is a financial journalist and his work has appeared in titles such as the Guardian, Euromoney and many others.