Tandem Bank is partnering with Stripe to offer an automatic savings functionality to customers, enabled by Open Banking.

The digital challenger bank announced its tie up with the global payments platform as part of its plans to offer users a range of new in-app and data-driven savings tools.

The ‘Auto Savings’ service uses Open Banking protocols to aggregate financial data from across all of a user’s accounts to show how much free spending money they have and offer personalised feedback on how they’re managing their money.

Tandem has chosen Connect, Stripe’s routing engine for complex fund flows as the underlying technology for this Savings feature, enabling the bank to segregate client funds from their own operating funds to ensure compliance.

The system makes use of Open Banking’s account information capability, which enables customers to grant permission for their financial data from bank accounts to be share with third party apps and platforms to provide greater insight into finances.

Iain McDougall, Stripe’s UK and Ireland country manager, said: “Building on infrastructure that powers the programmatic movement of money will be increasingly seen as a differentiator for technology companies, emerging fintechs and even established financial services providers.”

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