What is Open Banking?
Posted by on 7th October 2022
What is Open Banking or When it comes to banking, clients have a lot of desires and expectations that they want to see fulfilled by their financial organisations. Customers have a lot of demands, including having quick and simple access to their money and getting assistance whenever they have a question or concern. These expectations will only escalate as more financial institutions move toward open banking.
Why use Open Banking?
banking allows borrowers to share their bank account information and transaction data with Linked Finance to assist in assessing an application. Instead of having to manually send bank statements, borrowers can now grant Linked Finance access to their bank account data to allow us to provide finance and carry out the necessary credit evaluations in a faster and more efficient manner.
The Payment Services Regulations of 2017 govern open banking in Ireland. These rules are based on the second EU Payment Services Directive (PSD2). Open banking and the PSD2 allow banks to share your financial information with authorised financial service providers, such as your account information, regular payments, savings statements, and other banking information, as long as you permit them to do so
Speeding up application times with open banking
Your personal information and financial situation are no longer under the authority of banks and other financial institutions. Because of open banking, the responsibility for this is with you.
Open banking allows you to share information about your business bank account and the transactions that take place there with third parties such as Linked Finance. As part of the procedure for applying for a loan, it is no longer necessary for us to look for, download, and upload our bank statements. With just a few clicks, you can now easily share your transactional data in read only format to your bank/lender/ You are the one who decides at all times what kinds of transactional data you choose to communicate in a protected and secure manner.
How does open banking affect my application for a business loan?
a new way of applying for finance on Linked Finance. It allows applicants (business owners) to apply online for business loans. It instantly provides read-only access to their accounts to speed up application time and make quicker decisions. This removes the need to source bank statement PDFs and emails them over. It is extremely secure and is used by Linked and pillar banks.
The benefits of open banking include:
- Reduced application time (applicants can manage their applications)
- Increased visibility of application status
- Improved customer experience through better communication with applicants on the progress of the application
We are aware that our customers want to have the option of applying for a loan most quickly and conveniently as possible. Because of this, Linked Finance adopted Open Banking, a system that enables applicants (business owners) to submit their applications online.
Open banking is a new way to use data to make decisions. Banks are now able to share data with other banks. Financial service providers like linked finance use this process to make a loan application for their customers easy, allowing faster and more efficient decision-making. What’s more, banks are working on systems that will allow customers to authorize sharing their bank account data, which will open the door for other financial services providers to use this information in their applications.
Keep your business moving forward
With fast and flexible financing from Linked Finance.