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Technology is changing the way we live our lives
Today, we can now seamlessly connect devices and systems from anywhere in the world, allowing consumers and businesses to manage their lives no matter from who or where the service is delivered.
Banking and financial services are not immune from these developments, leading to the global movement referred to as Open Banking. With Open Banking, consumers and businesses can access their bank account data and payment services from anywhere, at any time. This means a business can be in its own CRM system, and seamlessly make a pay-out to a customer without needing to go into their banking App; or a consumer can be in their favourite shopping App, and readily see the funds they currently have available to spend in their bank account, before they go to make a payment, and all in a secure and controlled way.
Driving Open Banking is a mixture of regulatory pressure along with the desire to deliver better services. Globally, regulators are currently forcing the pace with the aim of introducing competition and innovation into the financial services ecosystem. In Europe two aspects of Open Banking are being mandated namely Payment Initiation Services and Account Information Service.
Payment Initiation Services
Open Banking stands to offer a major switch in the way we pay, either in the physical, online or mobile worlds. With Open Banking, payers can authorise a transaction directly with their bank, making a bank transfer straight to any individual or business via the account-2-account payment systems. The need for a payment card, then becomes completely superfluous.
Open Banking payments have many benefits. They are:-
- Fraud free by design
- Payer friendly, low friction, no data to enter
- Improved payer acceptance, no chance of fraud
- Settle funds in real time
- Have low transaction cost
Sentenial provides a service that goes well beyond the regulatory base filling functional gaps left by this model. Open Banking payments are now easy for merchants to implement letting them benefit from this new, revolutionary payment option.
Account Information services
Provides third party access to customer information held at a bank. The processes can be used to validate ownership of an account or allow selected data to be downloaded, all under the control of the consumer.
The process removes the need for paper documents in many applications, delivering the required data in real time.
Applications already benefiting from this technology include:-
- Account ownership verification
- Loan applications
- Mortgage applications
- Account aggregation
- Financial management
Delivering Open Banking
To provide the necessary level of security access to Open Banking functionality is restricted to licenced organisations.
Connecting to any specific bank requires knowledge of how to link to that bank as well as having details about their specific interface, these items are not standardised.
Sentenial is licenced to provide all Open Banking services and has the technology to reach and access banks across Europe.
Sentenial’s systems can also be used in a white-labelled mode for users who have their own licences.
Go to Nuapay Open Banking