Charles McManus, co-founder and board director of ClearBank, delivered a keynote titled “Delivering the Impossible – A Case Study,” detailing the creation and journey of ClearBank while exploring new avenues in modern open banking infrastructure.
McManus explained that a clearing bank is a financial institution involved in processing and settling payments for regulated banks, building societies, credit unions, authorized payment institutions, and e-money license holders. ClearBank’s API provides fully regulated banking infrastructure and real-time access to corporates.
Historically, the UK had 16 clearing banks, but by 2016, only four remained. It was during this time that Nick Ogden, founder of WorldPay and a tech entrepreneur, proposed the idea of a new clearing bank to McManus. He suggested building a tech-led, innovation-driven clearing bank to adapt to the upcoming fintech revolution.
Embracing cloud-native technology, McManus connected banks to payment schemes, despite the nascent stage of cloud tech. He noted the lack of a defined playbook and highlighted the need for dedication and resilience to advance the project.
In pursuit of a banking license, McManus approached the government and the Bank of England for institutional backing to challenge the established clearing banks. This effort ultimately led to ClearBank obtaining its banking license, allowing it to serve 260 financial institutions and focus on enhancing banking and payment services while enabling users to invest in their pensions.
McManus emphasized that ClearBank’s mission extends beyond just improving banking services. It aims to offer clients a sustainable experience and the ability to invest their pensions.
A significant milestone for the bank occurred when representatives from 26 regulatory bodies convened in London. McManus sought their cooperation and recognized the need to form a steering committee, fostering a mindset that encouraged collective achievement.
“Building strong relationships with regulators is essential for advancing data sharing, driving innovation, and combating fraud,” McManus stated, concluding his presentation with a focus on the importance of resilience and determination in the fintech industry.