Discussion
Asking for a friend... she wants to move money from Chip to her Santander current account, but the app is demanding permission to access it for 90 days to see her balance and DDs. She has no problem with providing ID like a DL or passport as it's the first time she's taken money out, but neither of us can understand why Chip needs to know her current account balance and DDs. Is this normal and essential?
It's a Shoreditch based fintech challenger with no banking license trying to build an 'investment super app'
What counts as normal for them could be almost anything.
Looking at https://intercom.help/get-chip/en/articles/5076466... it seems withdrawals do involve linking the account.
Personally I steer well clear of toy fintech stuff like this for exactly this sort of reason.
What counts as normal for them could be almost anything.
Looking at https://intercom.help/get-chip/en/articles/5076466... it seems withdrawals do involve linking the account.
Personally I steer well clear of toy fintech stuff like this for exactly this sort of reason.
alscar said:
I would have assumed that when your friend set the account up she would have had to link it to a nominated bank account ?
My experience with other places is that you only need to that for withdrawing, not investing. This is the first time she's tried to take money out.JoshSm said:
It's a Shoreditch based fintech challenger with no banking license trying to build an 'investment super app'
What counts as normal for them could be almost anything.
Looking at https://intercom.help/get-chip/en/articles/5076466... it seems withdrawals do involve linking the account.
Personally I steer well clear of toy fintech stuff like this for exactly this sort of reason.
As do I - but she was attracted by a 'good interest rate' (now only 2.4%...). What counts as normal for them could be almost anything.
Looking at https://intercom.help/get-chip/en/articles/5076466... it seems withdrawals do involve linking the account.
Personally I steer well clear of toy fintech stuff like this for exactly this sort of reason.
I know that a current account has to be linked to such things to withdraw money, but this seemed unnecessarily invasive. She says that they use 'open banking' - neither of us knew what that meant but I see https://www.investopedia.com/terms/o/open-banking....
'Open banking lets banks permit third-party providers, often tech startups or online financial services, to access and control customers' personal and financial data. Customers typically give consent, like checking a box on a terms-of-service screen, to allow banks to provide such access. Third-party APIs can use the customer's shared data and information about their financial counterparties. Uses might include comparing the customer's accounts and transaction history to a range of financial service options, aggregating data across participating financial institutions and customers to create marketing profiles, or making new transactions and account changes on the customer's behalf.'
That seems way too much power...
Edited by Simpo Two on Sunday 17th August 16:57
Simpo Two said:
alscar said:
I would have assumed that when your friend set the account up she would have had to link it to a nominated bank account ?
My experience with other places is that you only need to that for withdrawing, not investing. This is the first time she's tried to take money out.Was also given the option to then if desired pay the interest into the nominated account.
Simpo Two said:
Actually that's true, she said she's received the interest without issues... so why the extra level of intrusiveness now I wonder?
Probably to increase friction for anyone wanting to withdraw? Helps them to retain funds. I can think of at least one obvious situation where people will pay in and also get their interest type payments easily but then struggle with getting back the capital, but usually that's an association financial people try to avoid.
What I'd probably do myself with this is get a new account setup somewhere (if a spare account or two arent already available), link to that, get the money then revoke access immediately? Data access doesn't matter when there's no data to access.
Simpo Two said:
alscar said:
Was also given the option to then if desired pay the interest into the nominated account.
Actually that's true, she said she's received the interest without issues... so why the extra level of intrusiveness now I wonder?alscar said:
In which case, no idea and would be asking the same of their customer services - assuming they have such a thing on an app based account ?
No phones, but she's in e-mail contact and I've suggested some pertinent questions to ask. The minor snag is that she finds this kind of thing a very difficult and boring and so she easily gives up to go and see friends, watch TV etc. So it may take some time...!It looks like they want to do the OpenBanking link so they can analyse her banking activity and suggest what she could save etc. Whilst I agree that isn't required when you are wanting to withdraw money, it's a good way for them to get information and encourage people not to withdraw / withdraw a different amount etc. At the end of the day it is authorised to provide payment services, it is not a bank, and it only makes money when people use it.....not when they withdraw.
CharlesElliott said:
It looks like they want to do the OpenBanking link so they can analyse her banking activity and suggest what she could save etc. Whilst I agree that isn't required when you are wanting to withdraw money, it's a good way for them to get information and encourage people not to withdraw / withdraw a different amount etc. At the end of the day it is authorised to provide payment services, it is not a bank, and it only makes money when people use it.....not when they withdraw.
I’d tell them to FRO, & if they cannot send my money, then I would close the account. But maybe that’s just me!
Happy with sensible security, but they are taking the piss with that “requirement”.
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