Hodge Bank has partnered with Modulr, a digital payment specialist, which will power Hodge’s savings customers with a payment and accounts infrastructure to deliver a market leading, real-time digital banking experience.
Powered by Modulr, Hodge customers will get a digital banking experience and superior customer service, including the ability to see their balance and payments in real-time for increased control and reassurance. Likewise, Hodge’s customers also benefit from Modulr’s Confirmation of Payee service, ensuring when the customer sends funds to their Hodge account number, the sending bank recognises the account as their own.
This is the first time Modulr has partnered with a bank in this way and marks an exciting milestone for both organisations; bringing together the experience of a 56-year-old bank with the digital at-scale technology of a FinTech.
Hodge can provide each savings customer with a unique account which is connected to Faster Payments and Confirmation of Payee (CoP). The Hodge platform receives webhooks in real-time when payments are received into the account, allowing them to notify customers immediately.
Modulr is a directly connected participant of Faster Payments, allowing the FinTech to settle directly with the Bank of England, and was the first non-bank or building society to roll out Confirmation of Payee services.
Without these services, transfers can take hours or even days and customers receive limited notifications on their payment status. This can lead to customer anxiety, particularly when making large transfers for the first time. This new method means real-time notifications, more security and transparency which increases customer confidence.
Katie Johnson, Managing Director of Savings at Hodge said, “We’re committed to putting our customers first and focusing on what matters to them. What they’ve told us is they want greater control and transparency when it comes to their finances, in a fast and convenient way.
“Our partnership with Modulr is about providing exactly that. We’re looking forward to working with Modulr on new projects, especially with their focus on customer confidence and control over finances using facilities like Confirmation of Payee.”
Myles Stephenson, CEO and Founder of Modulr added, “This really shows how financial services have changed in recent years, and it’s a great reminder of how FinTechs and banks can work together to turn analogue experiences into digital ones. Not only does Modulr provide the fast, reassured, and convenient payments infrastructure customers demand, we also provide security and trust for Hodge’s customers. We hope to provide support to those who are less familiar with online banking and using digital tools like Confirmation of Payee to provide an important level of protection and visibility.
“We’re looking forward to working on more projects with Hodge. Its decision to partner with us rather than traditional agency banking partners, who may not have the technological infrastructure to deliver innovation in the same way, means that we can quickly build and launch new financial products together. It’s a hugely exciting partnership for both of us.”
Modulr is the Payments as a Service API platform for digital businesses. Modulr’s new type of payment accounts are built for businesses that need a faster, easier and more reliable way to move money. Businesses can automate payment flows, embed payments into their platforms and build entirely new payment products and services themselves. All managed in real-time, 24/7 from one API.
Modulr FS Limited (FRN900573) is an Authorised Electronic Money Institution, regulated by the Financial Conduct Authority. Modulr FS Europe Limited (C191242) is authorised and regulated by the Central Bank of Ireland and as an Electronic Money Institution. Modulr Finance BV (R182870) is authorised and regulated by De Nederlandsche Bank as an Electronic Money Institution. Modulr is a directly connected participant of Faster Payments and Bacs, enabling it to hold and settle funds at the Bank of England. Modulr has offices in Edinburgh, Amsterdam, London and Dublin.
For more than 50 years, Hodge has helped its customers achieve their financial goals with the skills and knowledge to ensure it creates products and delivers service for the moments that matter.
Over the years it has created mortgage products to support the older than average borrower and has also been able to use its experience in other specialist areas to grow its product offering to better serve brokers and customers alike.
Whether it’s with their personal mortgage, savings, or as a commercial client, Hodge is there to support the thousands of customers who trust us with their finances.
Hodge is 79% owned by the Hodge Foundation, a charity supporting welfare, medical and academic endeavours. More information can be found on the website www.hodge.co.uk. Follow @HodgeBank on Twitter.