What Is Open Banking?
Manually downloading statements from multiple bank portals and normalizing that data into a single spreadsheet eventually becomes a roadblock. As the volume of data increases, manually aggregating and normalizing bank data becomes incredibly time-consuming, invites the potential for human error, and creates information silos. Instead, there’s a better way to manage your cash and ensure your team makes the most efficient, data-backed decisions.
Open banking enables banks to transfer data to clients directly and securely. So instead of normalizing bank data manually, your organization can gain near real-time cash balance, transactions, and payment tracking in one platform. This improves security and performance, but it also unlocks automation opportunities and an entirely new intuitive, digital experience for users and developers.
According to Logan Allin, Managing Partner and Founder of Fin Capital, “Open banking, and Open Finance is making its way from consumer and small business into mid-market and enterprise. Trovata is helping bridge the gap as a tech platform for their clients that goes beyond what traditional online banking portals provide.”
This article will discuss how you can harness the technology of open banking and automated cash management platforms to support continued growth throughout your entire business.
The Benefits of Open Banking
Automate Multi-Bank Data In a Unified, Categorized Format
Automation is necessary as your business grows; naturally, the number of bank accounts and transactions grows alongside the company. When the amount of data needing to be processed is hindering your team from performing meaningful analysis, it’s time to consider establishing a baseline of automation. Financial institutions have realized this in the past few years, which has led to the creation of open banking API connections. These banking API connections have empowered clients to gain instant access to multi-banking aggregation.
In partnership with an automated cash management platform, like Trovata, corporate and open banking APIs connect directly to your bank partners to provide multi-bank data in a normalized format. This technology revolutionizes cash management and treasury operations by providing treasurers a single source of truth for cash balances, transactions, and rich metadata across all their key bank accounts.
Gain Global Visibility Into Your Cash Flow
Open Banking APIs are not utilized only regionally, as financial institutions are adopting them globally. Trovata, our automated cash management platform, continues to help companies unlock the power of Open Banking across geographies. With over 2,000+ open banking API connections, Trovata enables you to gain a unified view of your cash flow across the United Kingdom, European Union, United States, Australia, Singapore, and Japan. No matter the geographical boundaries, your organization has the same access to data anytime, anywhere.
Empower Clients with Account-To-Account Payments
Open banking doesn’t just unify your cash flow; it can also track and execute payments across banks. Trovata’s account-to-account payments functionality allows customers to initiate and receive payments directly from their bank through open banking APIs without extra third-party intermediary fees. It’s as simple as connecting your chosen bank portal through checkout, and Trovata’s extensive library of open banking APIs sends the payment details directly between customers’ banks. And by providing banks and TPPs with the unique ability to easily reconcile transactions and initiate refunds automatically, you can focus on building your business while Trovata takes care of the rest.
Reduce Costs and Risk With Access To Powerful Insights
Trovata’s extensive library of open banking APIs collects and normalizes all your bank data into a Multi-Bank Data Lake™, which perpetually stores your bank data. Machine learning algorithms analyze your bank data and distribute it throughout your different reports and forecasts. This strengthens your cash forecasts generated within Trovata, but it also empowers you to perform accurate variance analysis and scenario planning. As a result, you can reduce costs and risks associated with certain investments and decisions before making the final call.
Trovata, The Next-Gen Open Banking Platform
Since its market launch nearly three years ago, Trovata has become the fastest-growing treasury platform in the US, with hundreds of mid-market & enterprise customers managing over $100 billion in cash and over 50 million bank transactions. The platform delivers a truly modern user experience for finance and treasury professionals, and developers building custom applications. In addition, the Trovata experience is fully integrated with corporate banking APIs for multi-bank data aggregation, cash visibility, analysis, forecasting, and payments with no internal IT resources required. Now, Europeans can fully experience the power of managing cash flow in a platform built upon open banking.
“We’ve not only built out the largest library of corporate banking APIs in the world, but we’ve also built an entirely new end-to-end platform, an operating system to manage cash better, faster, and smarter,” said Brett Turner, Founder & CEO for Trovata. “We’re super excited to expand into the UK and the EU. Adding Fin Capital and NAB Ventures to Team Trovata, strong support from JPMorgan Chase and our other existing investors, along with $27 million in fresh capital, will allow us to help more businesses optimize and grow, which is critical given how fast things can change in today’s marketplace.” With this new funding, $60M has been raised to date for Trovata’s next-gen platform.
With Trovata, you can gain all the benefits open banking provides with an extensive library of 2,000+ open banking and corporate API connections. Learn how you can take advantage of the Trovata platform by reading our recent press release where we announced our expansion into the United Kingdom and European Union.