Open Banking 101
Open Banking. It’s a buzzword in the press and a milestone for the world of financial tech- but what does it actually mean? How does it work? And what impact might it have on the way you finance your business?
What is Open Banking?
Open Banking is a set of regulations that mean the big banks have to allow their customers to share their own transaction data with third parties. So in other words, you, as a customer, can take ownership of your account information and choose when and where to securely share it.
It’s a super useful piece of tech because it allows smart services - just like Liberis - to work even quicker when providing you with the funding, products, or tools that you need. And, as such, it’s set to notably increase small business’ access to funding; as you can take the data the banks have - and are often resistant to lend on - and bring it directly to providers that are dedicated to funding your growth.
But how does it work?
Open Banking works via a series of secure APIs. This stands for application programming interface and is essentially the way that systems can talk to each other and share information. For example, when you order a takeaway from JustEat, the Google Maps API lets you track your delivery on a map.
So let’s think about it in terms of business finance. When you apply for a cash advance with us, you’ll now be asked whether you give permission for us to speak to your bank and access your transaction data. We’ll use our Open Banking API - powered by OpenWrks and integrated by digital innovation specialists Marjolo - to do this.
If it’s a yes from you, the secured connection will let us view your data in real-time - helping us to make even quicker decisions on your funding!
We’ll show you what we mean:
Is it safe?
When it comes to bank APIs, you can be 100% certain that they’re secure. This is because both the banks and the authorised third parties will have had to prove to the Financial Conduct Authority (FCA) that they are meeting Open Banking regulations: keeping your information safe and only using it to provide the service you’ve asked for.
As for the data you’re sharing with us, it’s no different to the transaction data we already need to access when processing a funding application. It’s just a little more of it, made easier and safer for you to share. Say goodbye to PDF bank statements and clunky email attachments!
How else will it benefit you and your business?
With this streamlined application process, we can level up the team on our side too; bringing you a quicker decision and a much shorter route to getting the finance you need to boost your business. And this goes for everyone who applies for funding, whether you’re a first time visitor or a business owner we’ve been working with for years.
It’s speedier, it’s smoother and, by swapping out the attached documents for those secure APIs, it’s safer too!
OpenWrks make it easy for people to securely share financial information with the businesses they trust, so those businesses can deliver better, more personalised products and services. The OpenWrks API allows businesses to connect to every UK bank seamlessly and securely. Businesses that need accurate and real time financial data can quickly and easily integrate Open Banking data either into existing processes and systems, or can use the data to create ground-breaking new products, services or experiences for their customers. For more information visit www.openwrks.com
And a big thanks to the OpenWrks team for putting together our helpful Open Banking graphic too!
We simplify complex business change. Marjolo helps to filter through the noise of new digital solutions - with a people first approach that focusses on getting the very best from your existing digital tools, processes, data channels and people. Then, working with you to understand your investment focus, we identify the technology transitions that will complement your business and develop innovative solutions that will enable you to progress your transformation ambitions. Find out more at www.marjolo.co.uk