Does your business utilize open banking? If not, then you may seriously want to consider using an open banking platform as it can bring a myriad of benefits for your business. Read on to discover all that you need to know about open banking and how it can help your business to thrive.
What is Open Banking?
So, what exactly is open banking? This allows banks and third-party financial services to access consumer banking information, which can include payment history and transactions. This has emerged from the introduction of PDS2 in January 2018, which means that it is now mandatory for banks to hand over customer data to third-party providers when requested by the customer. Essentially, this gives business owners much greater control over the financial data of the business.
What Can Businesses Use Open Banking For?
Open banking platforms can benefit businesses in a handful of ways. One of the main advantages of using an open banking platform is that it allows you and your team to save time by giving you quick and easy access to key financial data, including accounts and transactions. Your financial team will have less work on their hands trying to make sense of the data and this should help them to start making better, more informed financial decisions.
In addition to this, you will also find that open banking can also make it much quicker and easier to get approved for loans when looking to grow the business. This is because you can create key financial reports with ease that will allow lenders to make much faster decisions. Businesses often need access to credit whether looking to manage a quiet period or grow the business, so open banking could make getting approved an easier and faster process.
Another important benefit to consider is that new technology is used that can make payments much more secure. The payment process will also be streamlined for your customers, which should help to increase conversions and improve the customer experience. On top of all this, fees will be lower so there are also financial benefits to using these platforms.
Learning About Customers
Finally, you should find that using an open banking platform is helpful in terms of learning more about your customers. With the use of smart financial data and customer transactions, you can identify the best ways to improve and fine-tune the business for greater levels of success and to keep your customers happy.
As you can see, there are many wide-ranging benefits to using an open banking platform as a business.