Open Banking

Introduction

Open banking is the practice that provides third-party financial service providers open access to banking, transaction and other financial data from banks and non-bank financial institutions using application programming interfaces (APIs).

Open Banking is enabled by a series of technologies, regulations, and services that aim to allow developers to create new banking services, new banking business models, and new commerce capabilities.

Typical Problems

As this is a recent technology, it is yet to be fully adopted across the banking sector and some ageing accounting solutions are unable to integrate fully with APIs

Once a bank is linked, the bank feeds can pull vast amounts of data, but this can still be limited by the system which can hinder reporting and decision-making.

Solutions
As Open Banking is fully regulated, and new banks are being onboarded rapidly, this will be the future of banking integration, allowing more integration than just open banking feeds, future-proofing your solution.

Benefits/ROI
Open Banking opens several possibilities with software integration including creating custom feeds, automating reconciliations, transaction creation and much more…

This will allow for a much wider scope than bank feeds as with integration, you will be able to pull through detailed finance information into your accounting system, allowing for the creation of accurate accounting reports, which can be automated with cloud synching, to allow you to get the information when and wherever you need it.