Open banking is not just a retail banking phenomenon. This global trend also has the potential to significantly improve the working lives of corporate treasurers – by enabling aggregated, real-time, multi-bank reporting at the click of a button.
Open banking is taking hold across the globe. It forms the foundation of an ecosystem of new and improved banking services. To date, innovation has largely been led by neobanks and fintechs implementing new services and experiences in the retail banking sphere. However, open banking could also bring great benefits to the corporate banking sector. In fact, treasurers could potentially benefit the most.
One of the pressing needs of corporate treasury teams is having accurate oversight of their globally scattered balances in real time. What’s more they require this information to be aggregated into a single interface to enable more efficient cash/liquidity management.
Open banking could potentially deliver the solution, thanks to the ease of integration it enables and the high levels of security and trust involved. As a reminder, open banking empowers banks to open up their application programming interfaces (APIs) and enables permissioned third parties to access financial information, in order to create new financial offerings.