ClearBank was launched in a blaze of publicity in February 2017 with the mission “to create greater competition, transparency and leading-edge technology in the banking market.” They wanted to create open competition in agency banking to radically change and improve market dynamics for financial services providers, FCA-regulated businesses and fintechs. They felt that a new clearing bank was needed that wasn't associated with legacy architecture and without operational reliance on any other bank.
The concept is very simple: a single API to connect to all the clearing systems, as the figure below shows.
How ClearBank® works
Source & Copyright©2019 - ClearBank
Growing number of partners
Several new fintechs are partnering with ClearBank to use their banking as a service (BaaS) enabling them to offer full banking services in the UK, for example:
- Dozens, a new challenger fintech, will be able to expand its already live current account offering with new functionality such as direct debits, IBAN numbers and more. Dozens launched on UK app stores in early 2019 and already has thousands of customers using its current accounts and budgeting and saving tools. ClearBank will provide Dozens with access to a range of API-based services, including seamless access to real-time payments services across BACS, CHAPS and Faster Payments 24 hours per day for 365 days per year. Dozens will also gain real-time account opening facilities through ClearBank’s world-leading API.
- TrustPay, a Slovak-based e-commerce payments business, chose ClearBank® to provide real-time payments services to its European customer base in the UK.
Use by large corporates
Large corporates are wondering whether to use payment services that are reliant on such new technology. Well:
- ClearBank® has been rigorously checked out by the BofE and the authorities
- it is rumoured that some large banks are considering getting rid of their own clearing services and just using ClearBank®.
Not only this ClearBank® is attracting some high calibre people, e.g. Simon Jones a long time J.P. Morgan man has just joined as Chief Customer Officer who wouldn't be investing their careers in dud-technology solutions.
CTMfile take: ClearBank® is probably the classic example of a technology disrupter. Just superb.
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The partnership promises to bring real-time payment capabilities to community banks across America.
Fintechs gain favour for B2B payments processing
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