HSBC's partnering with fintech startup Bud in latest Open Banking push for First Direct

 
Lynsey Barber
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Bud is helping First Direct ot help people manage their finances (Source: Getty)

HSBC is partnering with London fintech startup Bud in its latest efforts toward Open Banking.

The bank will offer Bud's financial management tools under its online only brand First Direct in a new trial, hot on the heels of the launch of its new app Beta last month.

Users will be able to see their accounts from other providers. set limits for how much they spend and analyse spending among other features, and will also be offered products from other providers.

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Helping people manage their finances was "the next logical step" said First Direct head Joe Gordon.

“With our history of driving innovation in financial services, first direct is a great brand to trial this tool, as it plays to our strengths of pioneering amazing customer-focused service and new ideas.

"It will see first direct extend its great service to people who don’t currently bank with us, and if it’s successful it can’t be overstated just how much this new business model could shake up the world of banking.”

The trial will include 2,000 of its customers and double that number of non-customers, running for six months from December.

“Our aim is to help identify the journeys that First Direct’s customers are on," said Ed Maslaveckas, chief executive of Bud which launched its own app last year and is part of the Financial Conduct Authority's startup sandbox.

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"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. First Direct is a great brand with a pedigree in innovation and service."

Britain's biggest banks are being compeled to make their data open under order from the competition watchdog. The rules on Open Banking are due to come into force from the start of next year.

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