Moneyhub powers Paragon's new Open Banking Cash ISA

Moneyhub has supported the launch of Paragon Bank's first Open Banking-powered Cash ISA through the Spring savings app. The new product expands Spring's range after the app passed £1 billion in customer deposits.

Spring, a savings app launched by Paragon Bank about a year ago, uses Moneyhub's technology to let customers move money directly from their current accounts into the new Cash ISA. The setup is designed to help users automate tax-free savings contributions from accounts held with other banks.

The move adds an ISA to a digital savings service that has so far focused on helping customers shift surplus cash from everyday accounts. Users can view external current account balances within the app and transfer funds based on what they can afford at the time, rather than relying on manual transfers or standing orders.

The launch reflects customer demand for an ISA within the Spring app and forms part of Paragon's broader digital strategy as it builds out app-based savings services.

Research cited by the businesses points to a large pool of cash sitting in low- or no-interest current accounts across the UK. An estimated 6.4 million current account holders keep £10,000 or more in such accounts, representing a total of £227 billion.

That backdrop has helped shape Spring's proposition, which centres on giving savers a clearer view of their day-to-day finances while making it easier to move money into savings. Most deposits into the app have been initiated through Moneyhub's payment technology, with daily volumes doubling month on month, according to the companies.

Digital savings

The arrangement shows how Open Banking tools are being used beyond budgeting and account aggregation, particularly in deposits and savings. For banks, the model offers a way to reduce friction when moving money from a customer's primary current account into a savings product without requiring card payments, manual bank transfers, or pre-set standing orders.

Moneyhub provides data and payment infrastructure to financial institutions, including banks, pension providers, wealth managers and insurers. In this case, its platform supports account connectivity and payment initiation for Spring customers to open and fund the new Cash ISA.

Guy Simmonds, Head of Digital Proposition at Paragon Bank, described the partnership as central to the app's development.

"Our partnership with Moneyhub has been integral to the launch and development of Spring. Spring is a key part of our wider digitalisation strategy at Paragon, helping us reimagine the savings experience for customers. The newly launched Cash ISA is a product our customers have been asking for, and being able to offer it through Spring's familiar, trusted digital experience is a significant moment for the app and for our broader digital journey," Simmonds said.

Growth focus

The savings app has become an important digital channel for Paragon as it seeks to broaden its channels for gathering retail deposits. Passing £1 billion in deposits in roughly its first year gives the bank a larger base from which to add products such as ISAs and test how customers respond to more integrated savings tools.

For Moneyhub, the launch provides another example of a financial institution using its services in a customer-facing retail product. The company positions its offering around transaction data, analytics, decisioning, and payment initiation, with a focus on helping firms integrate account information with actions such as moving money.

Dan Scholey, CPO at Moneyhub, said the Spring launch shows how those services can be applied to savings.

"We provide the scalable data and intelligence infrastructure that allows financial institutions to easily drop in extra, high-value services as their customers' needs evolve. Most traditional savings products still rely on manual intervention, but by embedding Moneyhub's data and payments platform, Spring has made saving effortless and automated. Helping Spring surpass £1 billion in deposits shows how our data-driven platform turns compliance and integration into a powerful engine for commercial growth," Scholey said.