Open Banking has a range of benefits for organisations. Not only is it a secure method of payment that is easy and flexible for customers to use, but it is also extremely secure. Using open banking APIs (Application Programming Interfaces) creates a high level of data protection and convenience for customers and businesses alike whilst also being a real time saver. Here are 6 ways open banking can help your business save time.
Greater visibility of finances
When making Open Banking payments, customers no longer need to enter as many details. Not only is this quicker and more convenient for the customer, it means the business no longer needs to store and deal with as much personal data. This reduces admin tasks and also means GDPR compliance is a much simpler task.
No risk of fraud or chargebacks
All third-party providers must adhere to strict rules put in place by the Financial Conduct Authority (FCA), meaning that consumers are sufficiently protected. As customers pay the business directly from their bank, there is a 0% risk of fraud or chargebacks. Businesses can therefore collect bank transfer payments effortlessly and securely, each time.£261.7 million was lost due to card fraud in the first half of 2021 alone and Open Banking irradicates the risk of any of the costs associated with card fraud affecting your business or wasting time chasing payments.
Open Banking provides all users with greater visibility over their finances across their accounts. This is perfect for keeping track of cash flow, monitoring payments, managing expenses, and effective budgeting.
Payments can take different times to clear, depending on the account they’re going to and the method of payment used.
With Faster Payments, which is what Open Banking uses when setting up a transfer, the payment should arrive in the payee’s account within minutes or even seconds. Whilst some banks can take up to 4 hours to process Faster Payments, this is still significantly quicker than alternatives. Payments can be made or received 24/7, including bank holidays.
BACS payments, in contrast, can take up to three days. Payments are only processed Monday to Friday, so any payments over the weekend will not be processed until the following week.
This decrease in process time is great news for businesses as they receive payments from customers almost instantly, meaning they will be able to keep a tighter grip and control of their cash flow and potentially avoid any cash flow issues that can often occur with late payments.
No software to download
Open Banking works by the customer paying directly through their bank after being given a QR code or Paylink so there is no need to download any software. This is much more convenient for customers and means businesses do not need to worry about any costly delays if there are issues with the software or if customers do not have access to it. All they need is a mobile phone and internet access.
Reduce time spent on banking
Not only can Open Banking help when receiving payments, but it can also be great for making business payments. Through this method, there is no need to constantly log in and out of different business accounts. Open Banking streamlines the banking process which in turn frees up staff members’ valuable time which can be used on other tasks.
These are just 6 of the ways open banking can help your business save time. Time is a precious commodity in a business and any methods that can reduce the time it takes to carry out annoying admin tasks such as chasing up payments, means businesses can not only receive payments in a more streamlined fashion, they can effectively use this saved time to work more efficiently, carry out jobs that have been on the back burner and grow their business.
TrustistTransfer can help you save time and make collecting bank transfer payments easier through Open Banking. We help you to collect bank transfer payments from your mobile phone or face-to-face using a unique QR code or Paylink. There’s now no need to carry around a card machine, no expensive fees and 0% risk of fraud or chargebacks. Learn more about what TrustistTransfer can do for your business here.