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Salt Edge report: Top 5 use cases for B2B companies powered by open banking

New Salt Edge report on Top 5 B2B use cases powered by open banking | Fintech Finance

Open banking is a global phenomenon created to boost innovation, competition, and efficiency by combining the strong points of both fintechs and banks. Here at Salt Edge, we’ve analysed thousands of demo requests and the actual experience of our clients to qualify the most spread and with the highest-potential open banking-powered use cases. Having discovered insightful findings, we are excited to share them with you in our latest report: Top 5 use cases for B2B companies powered by open banking.

We’ve 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, we analysed the traditional issues for every use case and open banking benefits that help to overcome them.

For example, did you know that 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 real disaster. The rejection rate is linked to many factors including outdated and time-consuming traditional SME lending processes, such as abundant paperwork and the inability to access up-to-date information.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 in order to cut the exorbitant operational costs.

With open banking, lenders obtain an instant way of getting information about clients and their current financial state. SME lending companies save countless hours previously spent analysing multiple financial documents of the potential borrower, and make well-calculated credit decisions in minutes.

Current digitally advanced environment stimulates the accounting software market to grow exponentially. Leveraging open banking functionality, accounting companies can finally break free from everlasting spreadsheet piles and easily automate almost all key processes.

For B2B companies with treasury and business finance management vectors it is crucial 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.

Kitted up with open banking functionality, banks now can, besides just being regulatory compliant, embrace the digital transformation to escape the fate of becoming old-fashioned and losing their position in favour of tech-savvy 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 blaze a trail for open data to unlock real freedom, and not just financial.

Download the report to find out how various B2B companies are reinventing their service offerings and creating whole new digital experiences with open banking.

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