An untapped opportunity is a rare prize in the corporate treasury community, but open banking offers this potential. By leveraging the digital infrastructure that open banking creates, corporates can harness real-time data, benefit from new ways to pay and collect instantly, and ultimately leverage the evolving digital ecosystem to improve process- and cost efficiency. In turn, these innovations can help to reduce fraud, bolster sustainability, and enhance relationships with customers, suppliers and financial providers.
Many misconceptions exist around open banking, not least the idea that it is simply a regulatory initiative that applies only to consumers and small businesses. Although the concept for open banking came from a 2016 report into the UK’s retail banking market (see box 1 below), in practice it has a much wider scope. In fact, it is a digital framework that underpins the very future of corporate treasury.