Open banking is an innovative digital model transforming financial processes for corporate businesses. Finrota offers tailored solutions to help firms maximize the benefits of this transformation.
Open banking is a financial innovation that is attracting worldwide interest. It refers to the sharing of financial information between different financial institutions through Application Programming Interfaces (APIs) and enables the creation of new services and products tailored to the needs of customers. In this article, we will examine the concept of Open Banking in detail, including its advantages, challenges and the current status of its implementation in Turkey.
What is Open Banking?
Open banking is a more transparent, accessible and competitive financial service model that adapts to today's digital transformation era. Basically, it works by banks and other financial service providers opening their infrastructure to third-party service providers via secure application programming interfaces (APIs). In this way, corporate customers and individual users can access and manage their financial data in a controlled and secure manner and quickly adapt to innovative solutions.
Open banking emerged in the UK and Europe in the early 2000s. At that time, the development of regulations and technologies for banks to share data and co-operate supported the idea of open banking.
It allows individuals and businesses to securely share their financial data with third-party providers such as banks, fintechs and payment companies to access more competitive financial services. Open Banking gives customers more control over their financial data. It reduces the cost of financial services and increases the efficiency of data sharing. It also provides banks and fintechs with a wide range of customer data that they can use to develop financial products.
With open banking, customers can switch between different banks and financial institutions and find many financial services in a single application. In this way, customers can manage their financial data more easily.
Open banking is subject to strict regulations to ensure the security of customer data and is usually implemented through APIs (Application Programming Interfaces).
Open Banking originated in Europe, where it became mandatory through the Payment Services Directive 2 (PSD2) of the European Union. The directive was designed to provide customers with greater control over their financial data and access to competitive financial services. It also enabled banks and fintech companies to access a broader range of customer data that could be utilized to develop more advanced financial products.
Advantages of Corporate Open Banking
Open banking transforms the way financial services are delivered to consumers by changing the customer experience. With Open Banking, different bank accounts are used on a single dashboard. And you can use many financial services in a single application. Open banking allows financial institutions to better analyse customer data. In this way, financial institutions can better understand their customers' financial behaviour and provide them with better services. By switching between different banks and financial institutions, customers can make payments faster and more easily.
What is Open Banking?
Open banking is a banking model that enables financial services to be delivered in a more transparent, accessible, and innovative way. This model allows banks and financial service providers to provide secure and controlled access to customers’ and businesses’ bank accounts. The foundation of open banking lies in the creation of application programming interfaces (APIs). APIs assist banks and other financial service providers in integrating third-party applications and services into their systems.
Open banking emerged in the early 2000s in the United Kingdom and Europe. During that period, regulations and technological advancements supporting data sharing and collaboration among banks contributed to the idea of open banking.
It enables individuals and businesses to securely share their financial data with third-party providers such as banks, fintech companies, and payment firms in order to access more competitive financial services. Open banking empowers customers to have greater control over their financial data, reduces the cost of financial services, and enhances the effectiveness of data sharing. Additionally, it provides banks and fintech companies with a wide range of customer data that can be utilized to develop financial products.
Through open banking, customers can switch between different banks and financial institutions and find multiple financial services in a single application. This allows customers to manage their financial data more easily.
Open banking is subject to strict regulations to ensure the security of customer data and is typically implemented through Application Programming Interfaces (APIs).
Open Banking originated in Europe, where it became mandatory through the Payment Services Directive 2 (PSD2) of the European Union. The directive was designed to provide customers with greater control over their financial data and access to competitive financial services. It also enabled banks and fintech companies to access a broader range of customer data that could be utilized to develop more advanced financial products.
Advantages of Corporate Open Banking
Open banking transforms the delivery of financial services to consumers by changing the customer experience. Through open banking, different bank accounts can be accessed and managed in a single panel, and multiple financial services can be accessed through a single application. Open banking enables financial institutions to better analyze customer data, allowing them to gain a deeper understanding of customers’ financial behaviors and provide improved services. Customers can switch between different banks and financial institutions, enabling them to make payments faster and more conveniently.
Open Banking Platform: NetEkstre
NetEkstre is an innovative platform that offers open banking solutions for businesses. By digitising the account transactions received from banks, it provides the opportunity to view all transactions on a single panel. In this way, the management of your accounts in different banks becomes easier and time loss is prevented.
Highlights of NetEkstre
Centralised Management: Collects account transactions from different banks and presents them in a single panel.
Data Transformation: Transforms all transactions into a common data structure and offers integrated solutions.
ERP Integration: Fully compatible with ERP systems such as SAP, Oracle, Microsoft Dynamics, Logo, Netsis, Mikro, Eta.
Advantages Provided to Businesses
Easy Tracking: All bank transactions can be tracked through a centralised panel.
Comprehensive Reporting: You can create custom reports, export these reports and optimise business processes.
Push Notifications: It offers instant or periodic reporting via SMS and e-mail.
Optimise Your Business Processes with NetEkstre
NetEkstre accelerates the financial management processes of corporate companies and reduces the operational burden.Thanks to this platform, businesses can effectively manage their financial data and support strategic decision-making processes. Discover the benefits of NetEkstre for your corporate business and take your business processes to the next level with open banking solutions.
What is B2B Open Banking?
B2B (Business-to-Business) open banking is a model that enables banks to share financial data by opening their application programming interfaces (APIs) to other businesses. In this way, businesses can securely access customer account information and other financial data, and digitise and optimise their processes.
Key Features of B2B Open Banking:
Data Sharing: Thanks to API integrations, businesses can manage customer financial data more efficiently.
Fast and Secure Access: Information is shared instantly over secure infrastructures.
Opportunity for Innovation: It offers businesses the opportunity to develop innovative financial products and services based on existing data.
Benefits of B2B Open Banking
B2B open banking is an innovative financial model that digitalises the financial processes of businesses and increases their efficiency.The fact that banks allow data sharing through their APIs gives businesses advantages in many areas such as speed, accuracy, innovation and customer satisfaction. Here are the main benefits of B2B open banking for businesses:
Increasing Operational Efficiency
B2B open banking enables financial processes to be carried out faster and more accurately by eliminating manual processes to a large extent. Businesses centralise processes by gathering account information from different banks on a single platform.
Accuracy: Automation reduces errors caused by manual data entry.
Speed: Instant data access accelerates financial reporting processes.
Savings: Operational costs are reduced and time is saved.
Supporting Innovation and New Product Development
B2B open banking offers businesses access to multiple data sources.This paves the way for the development of innovative financial products and services.
Personalisation: By analysing users' financial behaviour, businesses can offer solutions tailored to their needs.
New Opportunities: Product development processes are accelerated in line with customer needs.
Competitive Advantage: Innovative services allow businesses to get ahead in the market.
Improve Customer Experience with Open Banking System
B2B open banking helps businesses offer a more personalised experience to their customers.
Financial Analytics: By analysing customer spending habits, it offers financial advice tailored to individual needs.
Personalised Products: Products developed with accurate data analysis increase customer satisfaction.
Fast Solutions: Instant data sharing enables faster resolution of customer problems.
B2B open banking optimises the financial processes of businesses, increases customer satisfaction and contributes to the development of innovative products. This model, which offers many benefits such as efficiency, personalisation, competitive advantage and low cost, enables businesses to acquire a powerful tool in financial management.
What is the Future of Open Banking?
Open banking is one of the most important technologies shaping the future of financial services. Banks and financial institutions continue to adopt open banking systems to build stronger ties with their customers and provide more effective services.
What is expected in the future of open banking?
More Digitalisation: Open banking will accelerate the migration of all bank transactions to digital platforms. Account opening, closing and other banking transactions can now be done completely online.
Revolution in Financial Access: This technology enables customers to access banking transactions from anywhere. The removal of the wet signature requirement has facilitated the user experience.
At the Centre of Innovation: The next generation of financial technologies (FinTech) will develop further thanks to open banking. Fostering innovation will deliver more value to both consumers and businesses.
Open Banking in Turkey
Open banking in Turkey is a strong initiative led by the Banking Regulation and Supervision Agency (BRSA) that supports digital transformation in the financial sector.This model aims to provide innovative solutions and improve customer experience by enabling secure data sharing between financial service providers and third-party businesses.
How does Open Banking Work in Turkey?
Open banking works with application programming interfaces (APIs) that enable data sharing between banks, fintech companies and other financial service providers.In this process, customers can benefit from different services by allowing their financial data to be shared securely.
The BRSA has established a comprehensive legal framework for the safe and orderly implementation of open banking in Turkey.
Authorised Third Parties: Customers are only allowed to share their data with authorised and trusted third-party providers.
Security Protocols: Strong encryption and cyber security standards are implemented to protect data.
User Consent: Data sharing is entirely based on customers' consent, so users retain control.
Advantages of Open Banking in Turkey
1. Innovative Financial Services and Products
Open banking provides an opportunity for banks and fintech companies to develop new products and services tailored to customers' needs.
2. Competition and Lower Costs
Open banking encourages competition in the financial sector, allowing more cost-effective services to emerge. This is advantageous for both individual users and businesses.
3. Improvement in Customer Experience
Users can manage their accounts in multiple banks on a single platform and follow their financial processes faster and easier.
4. Financial Efficiency for Businesses
Open banking reduces operational costs and increases efficiency by digitalising processes such as collection, payment and reporting of corporate companies.
Open Banking in Turkey: Applications and Potential
Turkey is one of the countries rapidly adopting open banking and developing innovative solutions in this field. Major banks collaborate with fintech companies to develop API infrastructures and offer next-generation services to customers.
Instant Account Management: Monitoring all bank account movements on a single platform.
Loan and Investment Advice: Financial advisory services based on user data.
ERP Integrations: It facilitates financial reporting by combining the accounts of companies in different banks in a single system.
Automated Collection and Payment Systems: Provides speed and security in payment and collection processes.
Regulations issued by the BRSA and the Central Bank of the Republic of Turkey (CBRT) increase security in open banking processes and protect user rights.
The Future of Open Banking in Turkey
Open banking will continue to play an important role in the transformation of financial services in Turkey. Thanks to this technology:
New Players: Fintech companies will gain more ground in the sector with their innovative services.
Digitalisation: Traditional banking transactions will move to fully digital platforms.
Global Compatibility: Turkey's open banking infrastructure will become compatible with international standards and facilitate access to cross-border financial services.
Open banking in Turkey has the potential to revolutionise financial processes for individuals and businesses. With secure data sharing, innovative products and customer-oriented solutions, open banking will continue to be one of the cornerstones of digital transformation.
Open Banking
Open Banking offers customers more choice in financial services, allowing them to select the products that best suit their needs and preferences. This system significantly improves the customer experience by enabling financial service providers to securely share customers' data.
With open banking, banks can access customer data more easily and offer personalised and faster solutions. This enables them to respond to customer needs more accurately and efficiently.
In addition, Open Banking contributes greatly to the development of financial technologies (fintech). Next-generation financial solutions help users manage their financial data more effectively, enabling them to benefit more from financial services. Open banking offers a revolutionary transformation in financial processes for both individual users and businesses.
How Open Banking Works for Businesses
Open banking is an innovative system that digitises, accelerates and optimises the financial processes of businesses. In particular, B2B (Business-to-Business) open banking is designed to streamline payment processes, enable secure data sharing and give businesses more control in financial management.
B2B open banking has the potential to revolutionise the financial processes of businesses. It adds value to businesses in many areas from payments to data sharing, operational efficiency to cost savings.
Optimisation of Financial Management Processes in Large Scale Companies
Thanks to open banking, large-scale companies can manage their accounts in different banks on a single platform, consolidate their financial data and make detailed analyses. This integration accelerates financial planning and reporting processes and strengthens decision-making mechanisms.
Corporate Firms Gain Competitive Advantage with Open Banking Solutions
Open banking solutions allow corporates to offer flexibility, speed and customer-oriented service. This provides a competitive advantage. Finrota's innovative platforms help businesses stand out in the market and achieve sustainable growth.
Use cases that provide great convenience to the corporate side:
Fast and easy access to financial transactions from a single screen.
Centralisation of services and reduction of transaction times.
Real-time operation.
Minimising the high costs of financial operations.
Why is Open Banking Important?
Reducing costs will provide more innovative options for managing and accessing payments and loans.
Is Open Banking Safe?
Yes, Open Banking is secure. Open Banking is based on an application programming interface (API) that allows the exchange of financial data between parties. This technology ensures that data is stored and transmitted securely and processed quickly and efficiently.
Open Banking initiatives offer customers greater control over their financial data. This allows them to quickly and securely consent to share their data with a third-party provider or to cancel.
Financial data collection platforms utilise secure connections (enriched with bank-level security) and APIs for customers to access their data. APIs allow software to ‘connect’ to and access information from software in another company in real time. This technology enables the secure transfer of data between parties.
In addition to the use of secure technology, customers are subject to a number of legal requirements to protect their financial data. These requirements include strong authentication protocols, encryption of financial data, privacy and data protection measures.
Open Banking gives customers more control over their financial data. It also increases the efficiency of financial services by reducing their cost.
