Each week, we take a look at some of the latest stories from UK fintech. This week, Tesco Bank launches new way to shop for Clubcard members and new research reveals the UK’s biggest business fraud hotspots.
Tesco Bank launches new way to shop for Clubcard members
Tesco Clubcard Pay+, provided by Tesco Bank, a new way for shoppers to pay, save and pick up Clubcard points, pretty much every time they spend, is now available for all shoppers to apply.
Shoppers can add money and ringfence their grocery spend from any UK bank account into their Tesco Clubcard Pay+ account, using the free Tesco Bank mobile banking app. Tesco Clubcard Pay+ also gives shoppers the power to save while they shop by rounding up their purchases to the nearest pound, saving the difference into a Round Up account. Tesco Bank also plans to introduce additional features to Tesco Clubcard Pay+ which will further help families to budget and save, whilst being rewarded for their spending.
Gerry Mallon, Chief Executive, Tesco Bank, added: “Tesco Bank has designed a smarter way for Tesco’s 20 million Clubcard members to shop. Tesco Clubcard Pay+ is a clear demonstration of Tesco Bank’s strategy to focus on products that closely align to the needs of Tesco shoppers. We’re very encouraged to see Tesco Clubcard Pay+ help give shoppers the confidence to start saving while managing their budget and picking up extra Clubcard Points wherever they shop.”
Ecospend initiates £2.4billion of open banking transactions through ‘pay by bank’ services
Following an announcement from HMRC in December, Ecospend can confirm it has initiated £2.4billion worth of open banking transactions through its ‘pay by bank’ services across its client portfolio.
Ecospend’s open banking technology allows customers to bypass manual data input when carrying out online payments. As a result, customers can make instant payments directly from their bank account, at a fraction of the cost of traditional cards to merchants, while also significantly reducing the risk of fraud.
James Hickman, CCO, Ecospend, said: “We’re delighted that our technology has facilitated such a significant value of payment transactions with our partner businesses. This milestone is a testament to the innovative product we have developed, and this is just the beginning when it comes to the true application of open banking technology. Our solution not only gives customers a smoother and more efficient payment experience, but also reduces the cost for businesses and organisations when compared to traditional card transactions. In the year ahead, we expect more consumers and merchants to benefits from the capabilities of this technology.”
Nucleus Commercial Finance hires business development manager to boost Midlands team
Nucleus Commercial Finance, the fintech revolutionising how UK SMEs access finance, today announces the appointment of Gurinder Mandir as Business Development Manager for the Midlands as it looks to extend its support to businesses across the UK.
As Nucleus looks to drive growth and support for UK SMEs, Gurinder will be responsible for building strong broker relationships in the Midlands and educating the broker network on Nucleus’ product range and offerings.
Gurinder Mandir, Business Development Manager comments: “I am delighted to be joining Nucleus Commercial Finance and becoming part of this successful team where I will be able to support a wide range of clients with a strong array of financial products. Having seen the important role Nucleus has played through the government support schemes over the past two years, I look forward to helping more SMEs as they look towards recovering and thriving in 2022.”
Research reveals the UK’s biggest business fraud hotspots.
Research undertaken by anti-fraud experts SEON, has revealed the areas with the highest rates of business fraud per 100,000 people.
The City of London has the highest rate of corporate fraud per 100,000 people in the country at 100.92 cases. This will likely come as no surprise, as the City of London is the centre of the UK’s financial industry and is home to a huge number of businesses, while also being home to a comparably small number of people.
Nottinghamshire has the second-highest rate of corporate fraud in the country, making the county a much riskier place to do business than the majority of the country.
In third place is North Yorkshire. This largely rural county is home to several well-off small cities and market towns, such as York and Harrogate, which act as business hubs for the area and are likely the focus of fraudsters’ attention in the region.
UK fintech investment surges
Research from Innovate Finance has revealed that investment into UK fintech firms surged last year as investors looked to capitalise on new regulation in the sector.
Total investment into British fintechs jumped more than 217 per cent to $11.6billion in 2021, second only to US firms globally which saw $46billion of investment.
Ammar Kutait, CEO and Founder of W1TTY, said: “Despite the challenges posed by Brexit and Covid-19, the UK is seeking to redefine its position in the global economy by supporting the sectors it knows it can excel in. Fintech is a clear example of this, with the UK already accommodating some of the world’s leading neobanks.
“Importantly, we are now seeing a new wave of fintech companies on the rise – these agile startups are seeking to challenge the traditional financial monopolies by offering competitive financial services designed to meet the needs of specific demographics by leveraging existing technology. The UK is aware of this, which is why it is implementing reforms over the coming year to not only attract these fintech companies but also ensure they have room to grow, supported by capital investment from domestic and international investors.”