We partner with Modulr to provide our Business Account.
Modulr is an "electronic money institute" (EMI)
This means that Modulr has permission from the UK banking regulator to offer a service that allows clients to store money and make payments (in the same way that bank would). The key difference between an EMI and a chartered "traditional" bank is that EMIs are unable to hold deposits themselves to lend out to other clients.
Some of the key features include:
- Making and receiving payments using BACS, CHAPs, or Faster Payments
- Access to a sort code and account number
- Access to an IBAN and SEPA, meaning that you can make international payments into the account
Your funds are safe
All EMIs (not just Modulr) are required to hold all customer money in what's called a "safeguarding account" with a traditional banking institution. This means that all customer money in that account (including yours!) will be ringfenced so that it can't be used for any other activity (e.g. lending out to other customers).
Modulr's safeguarding account is with the Bank of England - this is perhaps the safest place to keep your money!
To add additional comfort, Modulr (by regulation) also holds an additional 2% of the total funds in the safeguarding account in their own funds as a buffer in case anything goes wrong. This gives them additional protection in the event that they go bust, but also ensures that they can wind down the business if required.
Modulr is used across the industry
You may not have heard of Modulr, but you may have heard of some of the companies that use it to power their software (like Revolut, Liberis, WageStream, Salary Finance, Sage, and Hodge). This is because they don't typically provide accounts to clients directly but rather, they work on a B2B model.
Modulr is extremely well-known in the payments and fintech industry and has also won plenty of awards over the past few years.
Further Information
If you'd like to know more about our Business Accounts or Modulr Payments, you can check out our Help Centre. If you have any further questions or concerns, please don't hesitate to get in touch with your sales contact or email gethelp@getground.co.uk.