How Open Banking APIs Empower Your Organization with True Cash Visibility

Written by Keegan Chamberlin
November 3, 2021

For decades, treasury departments have been held back by legacy technologies that have forced them to rely on manual cash processes to track their cash flow and position across their multiple bank portals. Financial crises have sped up technological advances in the treasury space as our increasingly fast-paced, digital world demands quick access to cash data and insights.

These insights are necessary in order to cope with more frequent economic downturns and maintain a significant competitive advantage over the competition.

Legacy treasury management systems are outdated as they are based on technology that has been around since the 1980s. And unfortunately, many treasuries are still having to rely on them to bridge their cash visibility gap. Downloading statements from multiple banking portals, and manually consolidating and normalizing those transactions into one common format has been the norm in the wholesale space. In contrast, technologies in the consumer space have provided instant access to always-on services for many years.

Getting your daily cash position shouldn’t be this difficult, and now with current advancements in treasury technologies, it doesn’t have to be.

As mentioned previously, financial crises have increased demand for opening banking APIs and automation within the treasury space as our increasingly fast-paced, digital world demands fast access to cash data and insights. For example, during the COVID-19 pandemic, organizations that had quicker access to rich cash insights were able to adjust their cash management strategy and were equipped with the knowledge needed to better cope with economic downturns, giving them a significant competitive advantage over their competition. 

During the pandemic, organizations that have digitally transformed their treasury could quickly adjust their cash management strategy through an automated cash management platform paired with open banking APIs. And by digitally transforming your treasury with open banking APIs, you can remain confident you have the insights needed to weather any recession.

What are Open Banking APIs?

In recent years, major US banks have begun providing third-party financial service providers access to consumer banking data and transactions through open banking APIs. These open banking APIs establish a big-data financial pipeline to send high-quality data on-demand to streamline cash management processes. These APIs not only eliminate many manual data workflows, but they provide a more complete transaction dataset compared to data within the MT940 messaging format. 

Now, by pairing this API technology with an automated cash management platform, such as Trovata, your organization can now access a data lake that stores all your cash and transaction data. Machine learning algorithms analyze and display this data in a data visibility layer, empowering you with a comprehensive suite of automated cash reporting and forecasting functionality. 

How Trovata APIs Empower You with a True Picture of Your Cash Position

1. Establish a Single Source of Truth Across Your Multiple Bank Accounts with Account and Balance APIs

Trovata’s Account and Balance APIs are critical in the process of establishing a Multi-Bank Data Lake™ for all of your bank balances and transactions. 

Account APIs have a single endpoint for accessing a consolidated multi-link report of your current account balances, including account-specific metadata. For every single one of your bank accounts, Trovata consolidates and normalizes your account balances for a given date range, including additional information such as closing available, closing ledger, current available, opening available, and opening ledger. All of this data is available in its original currency and can also be converted to a specified currency.

Balances APIs enable you to view aggregate historical balance entries for each account. In Trovata, you are able to modify and filter this data using parameters such as cadence, currency, start/end dates, account ID, and institution. 

By having a rich level of detail for historical transactions and opening/closing balances all in a single platform, not only does it eliminate the potential for inaccurate data due to human error, it decreases the chance for misinformation to be shared between key decision-makers as they all have the same visibility into the organization’s cash and transaction data.

Your organization can truly feel confident that they have the most up-to-date and accurate cash and balance data to make data-driven decisions.

2. Easily Find and Segment Groups of Transactions with Search APIs

Trovata’s Search API makes it easier than ever to find and segment groups of transactions to ease reporting and reconciliation. This API supports unstructured natural language search queries and provides high-volume, fully paginated transactions in less than 300ms.

Additional filtering is possible, including filtering based on position type, credit vs. debit, number of transactions to be returned, institution ID, account ID, start/end dates, currency, tag ID and many more. These search results can be saved as tags, which can be leveraged for any future cash reporting, analysis, and forecasting. 

3. Provide New Cash Insights with Cash Reports Powered by Analysis APIs

Analysis APIs help make sense of your transaction data by performing arithmetic operations. For a given date range and cadence, this endpoint will give the sum of the credits and debits, as well as the 3-month, 6-month, and yearly burn rate for a monthly cadence. T

his is incredibly useful in reconciliation to ensure that your balances from your bank match up with your balances within Trovata. Additionally, this API also provides a cash reconciliation report between balances and transactions for accounts that provide opening and closing balances.

Pairing these Search and Analysis APIs with Trovata’s machine learning capabilities empowers your organization to gain rich cash insights, as these technologies contribute to Trovata’s comprehensive suite of automated cash reporting and forecast functionality. You truly can eliminate your cash visibility gap and gain a complete picture of your cash flow and position across your multitude of bank accounts.

Gain True Cash Visibility with Trovata’s Open Banking APIs

Gaining a true picture of your cash flow and position shouldn’t be time-consuming and resource-intensive. Begin to eliminate tedious manual workflows by automating the consolidation and normalization of your bank data, and your cash reporting, forecasting, and analysis. 

Download the Trovata Platform Data Sheet to learn how to take hold of Trovata’s comprehensive suite of automated cash reporting and analysis tools. Discover how our multi-bank, automated cash management capabilities can enable your team with true cash visibility and automation capabilities necessary for your team to focus on strategic initiatives that propel your business forward.

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