As fintech becomes more and more sophisticated, consumers and businesses are enjoying more choices over how to govern their finances. But should you start using an open banking platform? Below, we explore the main benefits.
What is open banking?
Open banking refers to when a consumer gives a third-party app or software package access to their financial data. This can offer the consumer more sophisticated ways of organising their finances. For instance, a normal bank account will offer you fairly orthodox ways of managing your money. But by giving a budgeting app access to your account, you can unlock new ways of controlling your money.
The benefits
Accessibility
For a start, open banking offers greater accessibility to financial operations. With specially designed software, consumers can manage their money with sharper precision than before.
Centralisation of services
Open banking also allows for the centralisation of services. Previously, a consumer might have to make bank transfers and create a budget on different apps. However, open banking brings all these services under one handy roof.
Better understand customer needs
Open banking usually offers a better customer experience too. By sifting through the data they receive, open banking platforms can tailor your experience to make it more personal. This can save you time and hassle as you manage your money.
Cut back on admin
Previously, compliance processes would mean uploading all sorts of documents. But with information more readily available on open banking platforms, this process is streamlined.
Financial services in real-time
Open banking also allows financial services to run much more quickly. On most platforms, opening an account or finalising a transfer can now take just a matter of moments. Again, this can help remove any of the time-consuming aspects of financial management.
Reduced operational costs
If you’re running a business, open banking can help reduce operational costs. By investing in the appropriate software, you’ll be able to save your financial managers plenty of time throughout the day. This can cut out the chance of mistakes and allow your employees to focus on the more difficult and intricate tasks that they have to complete.
New products and services
Open banking is also set to enjoy new products and services in the coming years. With cooperation between banks and app providers, there’s no limit on technological advances in the future. By getting on board early, you’ll be set to benefit for years to come.
Open banking can make financial management smoother and simpler. Whether you want a higher level of control over your savings, or if you need to streamline your business’s financial tasks, open banking has the solutions for you.