Open banking is a practice that allows financial service providers to securely share customers’ financial data with their consent. Application programming interfaces (APIs) grant TPPs efficient access to financial data that influences the development of new apps and financial services. The goal of open banking is to create a better customer experience and gain customer retention. Small businesses can benefit from the ability to access customers’ financial data. Open banking automates accounting, makes it easier to apply for loan products, and makes it easier for customers to make purchases. Below the article, here find the Enhance your sales.
A better way to explain “what is open banking” is that technologies, regulations, and services allow developers to create new financial services, new banking business models, and new commerce capabilities. Open banking relies on customer expectations and regulations to enact changes in banking regulation, culture, and technology.
Open banking and the use of APIs offer more choices, better customer service, and seamless commerce. Small businesses enjoy innovations that open the door to new opportunities. It’s easier for startups to enter the market with more affordable alternatives to traditional financial services.
Automated accounting makes it easier to monitor your business finances.
Open banking makes it easier and more affordable to handle your small business’s accounting processes. Automation of accounting processes allows integrated systems to automatically update when credit and debits are processed. This comes in very handy when dealing with manual tax-preparation tasks. Aggregation platforms use open APIs to access your business’s financial data from different financial institutions and collect the information in one place.
Innovative software gives you the advice and analytics tools that help you analyze transaction data so that you can better manage your cash and make smarter financial decisions. APIs also have the ability to learn your financial behavior and more accurately suggest relevant financial products.
Streamlined lending practices make it easier to scale your business.
Traditional banks and lenders spend a lot of time reviewing and vetting borrowers before extending lending products. Rather than spend valuable time manually submitting your business information to multiple lenders, open banking streamlines the process. Financial service providers can easily pull your small business’s necessary financial data and review your financial situation. This is also true if you are trying to refinance an existing loan.
Not only is the borrower application process streamlined, but financial service providers are also encouraged to improve their financial services and products. With opportunities for new lenders and providers in the banking industry, the best way to stay ahead of the competition is to offer better products that lead to customer retention.
Customers have more payment methods to choose from.
A major part of delivering outstanding customer service is creating a memorable customer experience. Innovations have changed the ways that customers go about their daily lives and interact with brands and businesses. Customers value having multiple payment options at the checkout. Open banking regulations are strict when it comes to data security and privacy.
According to the PSD2, banks must allow third parties to initiate transactions on behalf of the customer. Not only will your small business enjoy reduced payment processing costs, but customers can opt for Venmo, PayPal, ApplePay, and more with greater peace of mind.
A sales career is competitive, demanding, and tiring. Sales professionals leverage the power of great customer service and find opportunities to turn potential leads into satisfied customers. According to Selling Power, there are several best practices that sales consultants can adopt to increase sales. Social media is a critical tool that sales forces can use to learn about customer needs and wants.
Utilizing all the social media platforms that your target audience uses is a great way to know your audience inside-out. The more data you can collect from your target audience, the more accurate of a consumer profile you can build. Enhancing your selling power is the key to customer satisfaction and customer retention. Small businesses can benefit from the automated accounting, easier lending practices, and expanded payment methods offered by open banking.