So, let's get down to the nitty-gritty. What exactly is open banking? Maybe you've read the term in an article somewhere or heard it on the radio and never gave it much thought. Well, it's actually pretty important and could help you and your business massively.
What exactly is open banking?
Open banking is a system where existing banks open up their customer transactions to third-party providers.
The FCA has made this mandatory for all banks, so they must comply. Yes, that sounds scary, but it's there to make your banking experience seamless and stress-free.
Open banking has been described as 'dragging lenders into the 21st century' by unlocking a world of stress-free mobile-enabled financial services. It's like moving from the typewriter to the computer.
5 reasons why you should be using open banking for your business
1. Save time and stress
No longer will you have to go through the rigmarole of signing into different accounts just to manage your finances. Open banking makes it easier to see it all in one place meaning the day to day running of your business could be so much easier. You can also make direct payments from your bank or building society, saving you a whole lot of time and stress.
2. Encourage budgeting strategy
By utilising open banking it could encourage you to start a real budgeting strategy whilst helping you find the best deals. It means you'll also be targeted with relevant ads where you can shop for the best products and services that suit you and your business' needs.
3. You are always in control
Only you can choose to give a regulated app or website secure access to your current account information. You can withdraw your consent at any time by directly going through the regulated app or website you're using or alternatively, contact your bank or building society and let them know you no longer wish the regulated app or website have access to your personal information. Easy as pie.
4. It's super safe
The FCA has rolled out this system to make it easier for customers and give them the power of who gets to see their data. Essentially, banking is evolving. Scary at first yes, but so much more streamline and stress-free for you, the customer.
5. Get the best business deals
With open banking, it means using price comparison websites is about to become a whole lot easier. No longer spending hours entering your information and trying to find the best deal for you. If you choose to opt-in and give your information to a regulated app or website, they'll continually give you the best results and deals based on what you actually spend and not just on your estimated activity.
Currently, any personal or business account that is accessible online or by mobile is eligible for Open banking. It could not only save you time but money also, something we all love to hear.
In the coming months, Capalona (Sorodo Limited) will be utilising open banking to assist our customers in finding the best business finance and current account for their business needs.
To find out more information about how Open Banking can benefit you and your business, please visit the Open Banking website.