of investors choose open banking payments
average deposit value since launch
reduction in unallocated or returned deposits
By using TrueLayer’s open banking API we get the best of both worlds – there’s a simplified in-app deposit flow, but with cost-effective processing. Customers can make payments quickly, and for us, the payment parameters are all there and can be automatically allocated.
Friction and churnManual bank transfers required users to switch between online banking screens and the app, copying and pasting details. This was a clunky experience that often led to drop-off, or churn as customers made mistakes and looked for an easier way to make deposits.
Unallocated paymentsIf a deposit had been made without the right information, it would be difficult to reconcile. At one point as much as 10% of deposits were unallocated: “That might mean us sending back £300,000 each month to customers for deposits we couldn’t match,” Damon explained. For Freetrade, this caused operational strain which grew with the business, as more and more deposits ended up in the unallocated pool.
Operational costCustomer support for those unallocated accounts was expensive, with people getting in touch to find out where their money was. The alternative – card payments – was simpler for customers, but with card networks designed for purchases (rather than money transfers), the cost was too high for this to be Freetrade’s primary payment method in the long term, particularly for high value transactions.Damon and the team needed to find a scalable solution that would deliver a great customer experience.
TrueLayer has provided the most cost-effective way of taking customer deposits. Having this simple and low-friction way of depositing, which is scalable in terms of business requirements, is fundamental to our next phase of growth.