Payroll software program platform PayCaptain partnered with ClearBank, the enabler of real-time clearing and embedded banking, to energy real-time wage funds and launch a brand new embedded financial savings service. The collaboration will initially serve greater than 50,000 workers throughout PayCaptain’s community of over 300 company shoppers, with a concentrate on the hospitality and retail sectors.
The partnership marks a big milestone for ClearBank, as PayCaptain turns into its first embedded banking accomplice within the company sector. The transfer alerts the financial institution’s ambition to ship embedded monetary providers on the level of want throughout a wider vary of industries.
Addressing the UK’s financial savings hole
The brand new embedded financial savings service is designed to assist deal with the low ranges of monetary resilience amongst UK adults. The announcement cited analysis displaying that 23 per cent of UK adults have £200 or much less in financial savings, whereas one in six don’t have any financial savings in any respect. This lack of a monetary security internet can drive people to show to costlier types of credit score, similar to loans or overdrafts, in an emergency.
To deal with this, PayCaptain will use ClearBank’s infrastructure to launch an embedded financial savings service for workers at its company shoppers. By means of the PayCaptain cellular app, workers will be capable of routinely allocate a portion of their pay instantly right into a financial savings account, giving them a easy method to construct their financial savings.
By leveraging ClearBank’s regulated banking platform, the embedded financial savings accounts will supply aggressive rates of interest and the safety of being protected by the Monetary Companies Compensation Scheme (FSCS).
Modernising wage funds
Emma Hagan, chief govt officer at ClearBank UK, commented on the partnership: “Delivering our first embedded banking partnership with a company buyer displays our ambition to convey our platform to new buyer segments, enabling the supply of differentiated providers at scale. PayCaptain’s shared perception within the energy of expertise to enhance monetary outcomes has allowed us to develop an modern system that may modernise wage fee choices.”
Simon Bocca, chief govt officer at PayCaptain, mentioned: “We’re on a mission to empower people to take management of their earnings by offering the instruments and insights they should handle their funds effectively. ClearBank was the pure option to energy our embedded financial savings service with their mixture of resilience, scale and expertise innovation. That is simply step one in our partnership. We’re excited to have our clients utilizing ClearBank’s providers and look ahead to collaborating on extra modern monetary options collectively”.
PayCaptain, an authorized B Corp based in 2020, gives a cloud-based payroll software program resolution that integrates payroll, banking, and monetary wellness instruments. ClearBank is a purpose-built, technology-enabled clearing financial institution that gives real-time fee and banking providers to its companions.
