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Peer2Peer Finance News | November 21, 2017

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First Direct partners with Bud on new ‘marketplace banking’ app

First Direct partners with Bud on new ‘marketplace banking’ app
Suzie Neuwirth

AS FINTECH-BANK collaboration gathers pace, First Direct has announced that it has partnered with Bud on a new ‘marketplace banking’ app.

The HSBC-owned retail bank said on Thursday that the trial product will enable people to link accounts from all their different banks securely in one app, regardless of whether they are a customer of First Direct.

Bud is a financial account aggregator that enables consumers to manage their finances on a single dashboard. A number of peer-to-peer lenders have signed up to its platform, including Zopa and RateSetter.

Under its partnership with First Direct, Bud will be providing a bespoke white-label product for the trial app.

Read more: Financial services firms lack fintech strategies

“Our aim is to help identify the journeys that First Direct’s customers are on,” said Ed Maslaveckas, chief executive of Bud.

“Whether they’re looking to buy a house or start a family, understanding what people want to achieve will help the bank serve its customers better with relevant products, in the right experience.”

Read more: Bankers most fear losing consumer loans to fintechs

The trial forms part of HSBC UK’s open banking strategy, ahead of new rules that come into effect next year.

The trial will include 2,000 First Direct customers and up to 4,000 non-customers, running for six months from December.

Banks have increasingly been looking towards fintech in order to compete with new entrants to the market. They have been investing in new technologies and opening their own ‘fintech hubs’, as well as embarking on partnerships with fintech start-ups.