3 new ways banks should start innovating with open banking

November 06, 2020 | Louise Basse

We often talk about the immense – and unexplored – potential open banking has for banks and financial institutions.

But in addition to providing consumers with a financial overview across all banks, and the ability to make payments from any bank account in any bank, there are still many open banking use cases to be explored.

To shine a light on some of the new ways banks can take advantage of open banking, we’ve gathered a quick and easy overview of three potential use cases.

1. Fast-track SWIFT messaging 

There’s no doubt that most retail commercial banks and asset management institutions struggle with cumbersome workflows as cash management departments and reconciliation departments communicate in SWIFT messages.

These SWIFT messages contain important information about payments, reconciliation, and account statements, and often it takes a while for the SWIFT messages to arrive. That slows the banks’ back office communication significantly.

To make that communication faster and create a better overall cash management process, banks can turn to an open banking platform like ours.

But how do we do that, you might ask?

As a vendor and open banking platform, we support banks in getting the information instantaneously and more accurately through our API.

2. Better verification of borrower assets 

The second unexplored way in which banks can improve their services and workflow with open banking is all about the verification of borrower assets.

When commercial banks need to give out a loan, they need to verify if the borrower is qualified to get the loan. This process often consists of slow and manual processes in which the borrower needs to provide the bank with numerous statements.  

With an open banking platform like ours, banks are able to get instant and accurate insights into the borrower’s assets and liabilities, as well as who the borrower is with a personal identity verification through our API.

3. Instant verification of client account

The third way in which we believe banks can innovate with open banking centres on the client account verification.

By using our open banking platform, banks can instantly extract account information and transaction details to better assess the financial well-being of borrowers. 

At the same time, the process is significantly simplified for the borrower when it comes to applying for loans, meaning a win-win setup for both parties.

If you’re interested in learning more about the many use cases that lie ahead for banks, please reach out to our team.