Salt Edge releases report on top Open Banking use cases for B2B

Having discovered insightful findings, Salt Edge wants to share them in its latest report: Top 5 use cases for B2B companies powered by Open Banking. The company identified and highlighted 5 major business sectors that have embraced Open Banking technology to improve their offerings:

• SME lending;

• Accounting;

• Business finance management;

• Treasury management;

• Banking.

In this report, Salt Edge analysed the traditional issues for every use case and the Open Banking benefits that help to overcome them.

For example, in 2022, the SME loan rejection rate by euro area banks increased by 4%, according to the ECB. For small businesses that are urgently looking for finances, it is a burden. The rejection rate is linked to many factors including outdated and time-consuming traditional SME lending processes, such as abundant paperwork and the inability to access up-to-date information. Old-fashioned credit bureaus and lending companies should reconsider their processes to keep up with the changes to cut the high operational costs.

With Open Banking, lenders obtain an instant way of getting information about clients and their current financial state. SME lending companies can save previously spent analysing multiple financial documents of the potential borrower and make well-calculated credit decisions in minutes. The current digitally advanced environment stimulates the accounting software market to grow exponentially. Leveraging Open Banking functionality, accounting companies can move away from spreadsheets and automate almost all key processes.

For B2B companies with treasury and business finance management vectors, it is important to orchestrate their multiple accounts held at various banks in one place. Open Banking-enabled features help them get a technology-savvy solution where all data is aggregated, secured, and accessible anytime. By embracing Open Banking functionality, banks now can, besides just being regulatory compliant, embrace the digital transformation to avoid becoming old-fashioned and losing their position in favour of fintechs.

Open Banking holds a promise to transform the industry with advanced technology, enabling third-party service providers to fetch data and initiate payments directly from a customer’s bank account, with customer consent, through open APIs. Working together, traditional banks and innovative fintechs open the door for markedly different experiences. Open Banking is already transitioning to Open Finance, and Open Finance, in turn, will lead to Open Data, the official press release concludes.

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