Aviva is partnering with German fintech open banking pioneer Raisin to deliver a new savings platform offering fixed-term savings accounts, entering the savings market for the first time.
Called ‘Aviva Save’, the service will be made available to Aviva’s 15 million UK customers. Aviva savers will be able to pick and mix savings offers from a range of banks and manage them all digitally under on the Aviva Save platform.
To date Raisin has brokered 30.5bn Euros across Europe and has 325,000 customers across 31 European countries on eight platforms. With more than 100 partner banks, Raisin offers a wide variety of products.
The Raisin Savings as a Service offering was also made available through Willis Owen and AJ Bell late in 2020.
Aviva is looking to tap in to the household savings market, which has seen an extra £125bn stashed away during the pandemic, equating to an average of £5,000 per household. The Bank of England expects this figure “to rise substantially over the first half of 2021”.
Aviva managing director, retail savings and retirement, Roger Marsden says: “Although we recognise that not everyone will have the luxury of extra cash at this time, those who do will want their money to work as hard as possible.
“Whilst many savers may be frustrated with the low returns they’ve received on their savings during lockdown, the effort involved in moving their money around is often a barrier to them and stops them doing anything at all. This can lead to a general apathy amongst savers to switch, despite there often being more competitive rates available. Aviva Save will address this by offering customers a range of accounts and rates over time, so they can manage their finances and switch between accounts easily.
“Our own research showed that more than half (57%)2of people took action in relation to their savings during the last lockdown and, during these uncertain times, they will want to make sure their finances and savings can meet their longer term goals, as well as their more immediate needs. Lockdown has meant lifestyle and spending habits have changed, and they will continue to change throughout 2021. It is more important than ever that customers take a broader view of their finances and their savings, and shop around for the best option to meet their needs.”
Katharina Lueth, VP of Europe for Raisin and Chairwoman of Raisin UK says: “The launch of Aviva Save with Raisin’s Savings as a Service represents a significant step toward the future of fintech, bringing embedded finance for the deposits sector mainstream.
“In December, flows into other deposit accounts within the UK savings market rose to £20.9bn, an increase from an already high £18.4bn in November. As a result, the Bank of England estimates that there is almost £1.6tr in household cash deposits – with a worrying £225bn sitting in non-interest bearing deposits.
“Partnerships like this one demonstrate the increased importance of diversification for consumers as well, including gaining access to higher interest rates to optimize the profitability of their liquid savings.”