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The UK’s newest clearing bank joins Bacs Payment Schemes Limited

31.5.2017

​~ ClearBank becomes latest to gain direct access to popular payments Direct Debit

and Bacs Direct Credit ~

The UK's newest clearing bank, ClearBank, has become a member of Bacs Payment Schemes Ltd (Bacs), the company behind Direct Debit and Bacs Direct Credit, taking membership up to 17 leading financial institutions.

ClearBank provides access to payment, current account, and transactional processing to financial services organisations, such as banks and fintechs, rather than to consumers.

Michael Chambers, chief executive officer of Bacs, said: "We are very pleased to welcome ClearBank on board as our newest member. ClearBank will provide access to our payment schemes to many organisations who can benefit from using our products. And, with the record six billion-plus transactions we processed last year, it is evident that our payments are still in great demand.”

“As the UK's newest clearing bank, becoming a full member of Bacs is a natural step, and one we're happy to facilitate.

Bacs processed almost six and a quarter billion payments worth a total of £4.8 trillion in 2016, and set another record for 109.3 million Direct Debits and Bacs Direct Credits transactions in a single day – that’s the equivalent of more than seven million payments each hour the processing window was open (15.5 hours), or in excess of 117,000 per minute.

Nick Ogden, ClearBank Executive Chairman, said: “ClearBank® is the first new clearing bank in more than 250 years, delivering full and direct access to all of the UK payments infrastructure.

“We started talking to Bacs in 2015, as a key component of our strategy to open access and create competition. As the first bank to connect to all the UK payment schemes concurrently, Bacs worked with us to agree an ambitious timetable which I’m delighted to say we have met.

“In early 2016 we jointly agreed a process and timetable which has been followed and delivered, exactly to the day. ClearBank® is the first UK bank ever to concurrently connect to all the UK payment schemes. The support and commitment from the Bacs team ensured that we achieved this key business goal.”

For further information contact our press office​.​​​

 

Notes to Editors:

About ClearBank®

ClearBank® is the UK’s first new clearing bank in more than 250 years. It delivers a new level of open
competition and transparency to the UK financial services marketplace.

Only the fifth UK clearing bank today, ClearBank® is neutral, independent and is not constrained by
legacy infrastructure.

Our state-of- the-art technology transforms the ability for financial services providers, FCA-regulated
businesses and Fintechs to provide Current Accounts to their customers, resulting in faster and more
efficient payments, whilst delivering financial inclusion.

For further information, please go to: https://Clear.Bank

About Bacs:

Bacs has been maintaining the integrity of payment related services since 1968, with responsibility for

the schemes behind the clearing and settlement of UK automated payment methods, Direct Debit and Bacs Direct Credit, as well as the provision of managed services for third parties, such as the Cash ISA Transfer Service, and the development, management and subsequent ownership of the Current Account Switch Service.

More than 120 billion transactions have been debited or credited to British bank accounts via Bacs since its inception; in 2016, nearly 6.25 billion UK payments were made this way, while a new record was also set in September 2016 with the number of transactions processed by Bacs in a single day reaching a high of 109.3million.

A not-for- profit entity which has maintained carbon neutral status since 2012, Bacs is a membership
company limited by Guarantee.

For further information please visit www.bacs.co.uk.

More about Direct Debit:

A Direct Debit is an instruction from a customer to their bank or building society authorising an organisation to collect varying amounts from their account, normally for regular payments for everything from household bills to charitable donations. Almost nine out of 10 British adults have at
least one Direct Debit commitment, with 73 per cent of household bills paid this way; 62 per cent of
people in GB prefer to pay most bills by Direct Debit, and the number of people who feel positively towards Direct Debit reached 77 per cent in 2016. Over 4 billion Direct Debits were processed in 2016, and Direct Debit payments are protected by the Direct Debit Guarantee, a money back consumer safeguard.

For more information about Direct Debit, visit www.directdebit.co.uk.

More about Bacs Direct Credit:

Bacs Direct Credit is a simple, secure and reliable service, which enables organisations of all sizes to
make payments direct into a bank or building society account - unlike cash or cheques, Bacs Direct
Credit payments cannot be lost, stolen or delayed in the post. There are more than 150,000 organisations in the UK using Bacs Direct Credit; while it has been widely adopted to pay benefits, wages and salaries – nearly 90 per cent of the country’s workforce is paid this way and one billion benefit payments are made via Bacs Direct Credit – it is also the payment method of choice for a range of other applications such as pension payments, employee expenses, insurance settlements, dividends and refunds.

Bacs also owns and manages the Current Account Switch Service, as well as operating the Cash ISA Transfer Service and the Biller Update Service. Find out more here.