How Open Banking Transforms Financial Tools

Open Banking has revolutionized the financial landscape, enabling secure access to customer financial data and driving personalized products and services across industries. With real-time insights and streamlined operations, businesses are experiencing remarkable benefits, particularly within the realm of finance tools.

Here’s a list of the most use cases and popular benefits: 

1. Robotic accounting: Open Banking empowers accounting platforms to seamlessly connect with customers’ bank accounts, automating the retrieval of the latest transactions. This eliminates the need for manual data entry, significantly reducing errors and enhancing operational efficiency.
2. Automated invoice reconciliation: By leveraging Open Banking APIs, businesses can automate the matching of paid invoices with corresponding transactions in their accounting software. This ensures accurate and up-to-date financial records, saving time and improving financial visibility.
3. Automatic payments: Open Banking APIs enable companies to initiate payments directly from their accounting software or ERP systems. With comprehensive information readily available, transactions can be consolidated and securely sent for bank authorization. Some systems even allow direct access to signatures, further streamlining the payment process and minimizing errors.
4. Customer-centric payment experience: A prominent use case gaining momentum is the integration of Open Banking in customer payments. Known as the ‘get paid’ feature, it allows businesses to include payment links (URLs) in their invoices via dedicated invoicing software. When customers click on the link, they are seamlessly directed to their own bank’s secure payment interface, where they can authorize payments. This user-friendly approach simplifies the payment process, accelerates payment cycles, and, when combined with automated reconciliation, ensures instant invoice updates upon payment.

Open Banking continues to unlock innovative opportunities, transforming financial operations and driving customer satisfaction. By embracing these use cases, businesses can thrive in an increasingly digital and competitive landscape, leveraging the power of Open Banking to deliver exceptional value to their customers.

Get in touch to learn more about how Ponto can help you automate financial data to increase efficiency and customer experiences for your software. Or take a look at our comprehensive Open Banking Guide to get more information on how to select the right Open Banking PSD2 provider for your needs.