Safeguarding Accounts – Providers in the UK

Safeguarding accounts are a critical component for UK-regulated fintechs, ensuring client funds are kept separate from the provider’s own capital. This page provides a detailed overview of various providers in the UK, including traditional banks and modern Fintech/BaaS (Banking-as-a-Service) platforms.

Traditional Banks (Commercial Institutions)

Major UK commercial banks like Barclays, HSBC, Lloyds/TSB, and NatWest offer special “client funds” or payment institution accounts for regulated fintechs. These arrangements are typically bespoke and require strict KYC/AML checks. These accounts are held at the bank, ring-fenced from the institution’s own funds, and often receive an annual “safeguarding letter.” Client deposits are eligible for the UK Financial Services Compensation Scheme (FSCS) up to £85k per firm.

Fintech / BaaS Providers

Griffin Bank

A UK-regulated fintech bank built specifically for fintechs. Griffin explicitly offers API-driven “safeguarding accounts” that can be dedicated or pooled. Deposits are FSCS-protected because Griffin is a licensed bank. Eligibility requires firms to be UK-incorporated with proper FCA permissions.

Bank of London

This UK-authorised building society offers API-based Safeguarding Accounts for Payment Institutions, Small Payment Institutions, and Electronic Money Institutions. Accounts are held as pooled client accounts with optional virtual IBANs. Deposits are FSCS-protected.

ClearBank

A UK cloud clearing bank providing account infrastructure via API. ClearBank supports segregated “safeguarded” accounts, including Pooled and Designated types. The bank provides FCA-compliant safeguarding letters on request, and deposits are FSCS-protected.

Banking Circle

An EU-licensed payment bank with a focus on B2B accounts. Banking Circle offers multi-currency safeguarded accounts, with client funds held in segregated accounts. It supports regulated clients worldwide and is authorised in the EU and UK.

Magnetiq Bank

A Latvia-based EU commercial bank that provides Banking-as-a-Service to fintechs. It promotes fully segregated “Safeguarding accounts” for EU and UK-regulated EMIs and PIs. Client deposits are protected by the Latvian (EU) deposit guarantee.

Integrated Finance

A UK fintech platform that acts as an “orchestrator,” providing clients with access to safeguarding accounts and other BaaS features through partnerships with licensed institutions like ClearBank and Modulr, without the client needing to become an EMI themselves.

Modulr Finance

An FCA-authorised Electronic Money Institution (EMI) that provides embedded payments and accounts. Modulr safeguards all client e-money by depositing funds at leading clearing banks, including the Bank of England.

Railsr (formerly Railsbank/PayrNet)

A UK-headquartered fintech BaaS platform with an FCA-licensed EMI subsidiary. Railsr provides regulated finance capabilities, allowing fintechs to create segregated accounts and issue branded cards under Railsr’s license. As an EMI, its client money is safeguarded but not covered by FSCS.

OpenPayd

An FCA-regulated Electronic Money Institution (EMI) and BaaS provider that offers safeguarded accounts to fintechs. It provides virtual GBP/EUR accounts and partners with banks to hold the safeguarded funds.

Clear Junction

An FCA-authorised Electronic Money Institution that provides banking infrastructure. Clear Junction segregates client funds in designated safeguarding accounts with authorised banks. Their client funds are fully segregated but, as an EMI, are not covered by FSCS.

General Features and Key Takeaways

• All providers offer compliance-grade, segregated accounts for regulated firms.
• Key features often include dedicated or pooled client accounts, virtual IBANs, and real-time API access.
• Most require the client fintech to already hold an FCA EMI/PI license.
• Traditional banks’ offerings are often bespoke, while fintech/BaaS platforms provide quick, API-driven solutions.