Commenting ahead of Open Banking’s launch this weekend, Richard Ransom, Head of Business Development, Bottomline Technologies, said:
“Open banking will change the game by enabling smaller fintech companies and challenger banks to compete more fairly with traditional financial services incumbents. The net effect will be a proliferation of innovative solutions for existing bank customers, with a greater level of financial products designed to fit the requirements of the new, digital landscape
Fintechs and banks are not the only benefactors. Over time, corporates stand to benefit tremendously from Open Banking and many of them have yet to catch on to all the positive advantages. Corporates, especially those that enjoy multiple bank relationships, should look forward to more convenient payment management across different banks via centralised platforms, enabling more effective cash management. Financial decision-makers must be better informed to comprehensively understand the benefits of Open Banking and know the right questions to ask their banks and internal stakeholders.
Open Banking will make it easier for businesses to use Faster Payments in the UK, on a multi-bank basis. Additionally, the New Payment Architecture currently being designed for the UK will make Faster Payments even more valuable. New initiatives such as “Request to Pay” and “Enhanced Data” will see the potential introduction of sophisticated electronic invoicing into the payment system, ultimately making it easier for companies to pay and get paid.”