PAID Romania automates payments via Finqware partnership

The move involves integrating FinqTreasury, a platform designed to automate reconciliation and payments, into PAID’s operations as it manages the country’s mandatory home insurance system. 

The integration allows PAID to reconcile insurance premium payments in real time by directly connecting to banks through API-based Open Banking infrastructure. This replaces the previous system that relied on manually handling bank statements. The platform also enables automated compensation payouts to policyholders, with end-to-end traceability.

Automated reconciliation and real-time payments 

According to representatives from PAID, the implementation of FinqTreasury addresses operational challenges related to managing growing transaction volumes and the increasing prevalence of real-time payments. They indicated that moving away from manual processing improves transparency and reduces both operational costs and the likelihood of human error. 

Finqware officials noted that the partnership shows how insurance providers can shift to automated financial processes and better align with the digital expectations of today’s financial landscape. They said the collaboration reflects a recent industry shift, where speed and automation are becoming essential due to the rise of instant payments. 

PAID currently manages approximately 2.35 million compulsory home insurance policies under the PAD system, which covers three primary risks in Romania: earthquakes, floods, and landslides. Since its establishment in 2009 under Law no. 260/2008, PAID has contributed to rebuilding thousands of homes affected by covered events. 

Finqware, authorised as a pan-European payment institution, develops Open Banking solutions aimed at automating corporate financial processes. Its clients include both non-financial firms and banks, among them Banca Transilvania, CEC Bank, and Salt Bank.