5 key elements to consider before starting with Open Banking

Open banking provides business software solutions with the possibility to extend their features, reach more markets and add actionable information for their customers. For example, one of the biggest benefits for accounting and invoicing solutions is the access to real-time financial data. This reduces manual data entry and eliminates outdated bank statements. Customers can better track their expenses, manage cash flow, and make informed financial decisions.

To access your customers’ financial data through open banking APIs, you’ll need a PSD2 license from your regulator. This license is typically granted by the National Central Bank. You will also be required to implement robust security measures, such as encryption and two-factor authentication, and comply with data protection regulations like GDPR. In short, you must ensure that you handle your customers’ financial data securely and responsibly.

Here’s a list of elements to consider before you get started:

1. Data Security	This is your top priority! It is critical to have secure authentication mechanisms and encryption protocols in place to protect customer data. Follow best practices of data storage. Implement access controls to prevent unauthorized access or data breaches.
2. Comply with regulations	Comply with relevant regulations and obtain the appropriate license. Stay up to date with regulatory changes and adjust practices accordingly.
3. Seamless user experience	Typically, your customers will have questions on what open banking is and how it works. Provide clear and concise documentation to help them understand how their data is being used and what measures are in place to protect their data. Consider implementing a live chat for a better user experience.
4. Develop Partnerships	Build strong partnerships with banks and key fintech players to ensure smooth integration and ongoing cooperation. By doing this, you will be more likely to receiving support from the bank if you face issues or bugs.
5. Monitor Performance	Monitor open banking integration performance to identify issues and areas for improvement. Track metrics such as customer adoption rates, transaction success rates, and customer feedback to identify optimization opportunities.

Too much to consider because you are aching to deliver value adding solutions rapidly to your prospects or customers? Working with an open banking provider can make this process easier so that you can focus on your core activities.

At Isabel Group, we can help you integrate bank data in your application and make payments across 2000 European banks. Reach out to us to learn why Ponto (our open banking platform) is the top open banking provider for already 200 software companies.