SMEs are an indispensable component in the economic development of a country, playing an important role in creating jobs for the workforce, increasing state budget revenue, etc. However, the story of access to finance for SMEs remains a difficult knot to untie in many countries. The emergence of open banking is expected to remove many financial barriers that SMEs are facing.
The outstanding benefits that SMEs receive when participating in the open banking ecosystem
Not only does it create a positive impact on banks, third parties, and users in the ecosystem, but open banking also brings significant benefits to SMEs.
Better access to credit
Small and medium-sized enterprises often face difficulties in accessing credit from traditional banks due to: lack of transparent and accurate financial data, lack of collateral, no audited financial reports… However, with open banking, small and medium-sized enterprises can share financial data with third-party providers – organizations capable of assessing credit history. As a result, these enterprises have the opportunity to access better credit sources from various financial institutions, especially suitable in the case of startups or those with limited credit history.
Better financial management
Open banking allows small and medium-sized enterprises to access multiple financial products and services simultaneously on a single platform. In addition, these enterprises can view all accounts, transactions, and financial data on one screen, one application. This way, small and medium-sized business owners can make better financial decisions and manage cash flow more effectively.
More competitive prices
Another positive impact that the open banking ecosystem brings is the competition in pricing of financial products and services. By leveraging the financial data of small and medium-sized enterprises, credit institutions can offer financial products that match the specific needs, scale, and sector of each business, meaning that businesses can access the best loan packages within their capabilities.
Improved security and privacy
To participate in the open banking ecosystem, an important requirement is that banks and third-party providers must comply with strict security standards according to international policies or the laws of each country. Therefore, the financial data of small and medium-sized enterprises is ensured to be safe, private, and protected from unauthorized access.
Experience for small and medium enterprises when participating in the open banking ecosystem
Understanding open banking
Before participating in the open banking ecosystem, understanding the nature and operation of open banking is extremely important. Small and medium enterprises can start by reading articles, watching explanatory videos, and attending online seminars, then exchanging with other business owners who have participated in the open banking ecosystem and learning from their experiences. The more knowledge about open banking, the better equipped businesses will be to make smart and correct decisions.
Choosing a reliable third-party provider
When participating in the open banking ecosystem, small and medium enterprises will need to choose a third-party provider to manage financial data. Choose based on criteria: Check the list of partners, customers who have accompanied, projects that these providers have implemented,… You can start right now by looking for information on websites, customer reviews, and suggestions from businesses that have previously collaborated.
Data security should be a priority
When participating in the open banking ecosystem, data security should be the top priority. Small and medium-sized enterprises need to ensure that their financial data is protected from unauthorized access and theft by verifying whether third-party organizations have the right to audit, assess credit history in compliance with data protection and information security regulations.
Start small and gradually expand
When participating in the open banking ecosystem, small and medium-sized enterprises may feel overwhelmed by the integration requirements, the infrastructure – technical needs to be equipped, the data that needs to be shared, etc. Therefore, it is advisable to start with basic services such as payment solution integration and then gradually expand to more complex services like loans and credit. This will help businesses easily control and gradually familiarize themselves before comprehensive integration.
Joining the open banking ecosystem is a turning point for small and medium-sized enterprises. Not only do they gain access to better financial products and services, but small and medium-sized enterprises can also manage their finances more effectively.
However, to fully leverage the benefits that open banking brings, these businesses also need to equip themselves with knowledge about open banking, choose a reliable provider, prioritize data security, etc. By following these experiences, small and medium-sized enterprises can take advantage of the benefits that open banking offers while ensuring that the business can develop steadily without worrying about capital sources.
About SAVYINT and the SAVYINT Open Banking solution
SAVYINT is a trusted service provider leading the market and is in the TOP 10 leading IT companies in Vietnam. SAVYINT has successfully developed the SAVYINT Open Banking solution – a specialized system dedicated to the Finance – Banking sector, meeting legal and technological requirements to create connections and build a digital financial ecosystem. With a solid technological infrastructure and experience in deployment and operation, SAVYINT provides customers with advanced technology and the best user experience.
The SAVYINT Open Banking solution encompasses all the features to become a reputable standard platform in the Finance – Technology field:
- International standard API Templates: Supports Open Banking technical standards from leading global organizations such as Berlin Group, UK Group, Monetary Authority of Singapore, Australian Competition and Consumer Commission, Hong Kong Monetary Authority, etc.
- Strong Customer Authentication (SCA): Supports strong authentication in electronic payments and transactions, adaptive authentication, and consent management according to GDPR.
- Open architecture framework: Allows for the flexible development and construction of services based on the Open Banking platform.
- Multi-layer security: Supports multiple layers of API security such as OAuth2, authentication using digital certificates according to eIDAS standards, ensuring absolute safety.
- Analytics and reporting tools: Provides analytics, reporting, and API statistics tools suitable for the operational needs of organizations and businesses.
- Developer service portal: Supports Dev/Test environments, facilitating development and testing.
- Easy and secure Core Banking integration: Ensures quick and absolutely secure integration with existing Core Banking systems.
- Risk detection: Provide risk analysis tools in transactions, detect counterfeit, abnormal, and unsafe characteristics.
Connect immediately with SAVYINT experts to start building an open banking strategy today!
