Ecospend, the UK’s leading Open Banking provider recently acquired by Trustly, has joined PIMFA WealthTech, the digital marketplace and industry network created to drive innovation and enhance collaboration between WealthTechs and wealth management firms, to provide a proof of concept “Pay-by-Bank” solution to its members.

Ecospend’s solution will allow clients of PIMFA WealthTech members to make payments directly to their accounts more easily and securely and without the need for cards.

The account-to-account or “Pay-by-Bank” solution initiates a direct bank transfer, removing the need to enter card details when completing a payment, which significantly reduces the chance of data entry errors and card fraud risk for wealth management clients. The payment is authorised via the client’s chosen online or mobile banking service, which typically makes use of biometric ID, creating a seamless and secure payment experience that requires no data input.

The ‘Pay by Bank’ method also bypasses card networks and interchange fees bringing cost savings, as well as efficiencies - the automated user experience removes the risk of human error and saves the time taken to reconcile manual bank transfers.

After assessing the Open Banking market, PIMFA WealthTech selected Ecospend as an Innovation Partner based on the quality of its technology and services and the robustness the solution that has already been demonstrated through its partnership with HMRC.

Ecospend has processed record-breaking volumes from HMRC, having passed £12.5bn since 2021. In addition, it has been developing a specialised service for the wealth industry and was selected last year as the provider to one of the UK’s largest investment platforms.

Keith Philips, Executive Director of PIMFA WealthTech, commented: “We are delighted to welcome Ecospend to PIMFA WealthTech and believe their ‘Pay by Bank’ technology solution will prove very popular within the wealth management community. Not only does the solution substantially reduce the risk of fraud, it also significantly reduces interchange costs for businesses and provides an instant transfer of funds. I’m sure many wealth managers and investment platforms will take an immediate interest in this solution and look forward to working with Ecospend in offering this solution to the industry.”

James Hickman, Chief Commercial Officer at Ecospend, commented: “We are thrilled to be working with PIMFA WealthTech to develop cutting-edge Open Banking payment options for its members. This is a great opportunity for the entire industry given the importance and reach of PIMFA WealthTech and we are thrilled to be working with the market leader - it’s the perfect response to changing consumer behaviours and digital adoption.”