Author: finrota

In our rapidly digitalizing world, banking transactions and financial processes are undergoing significant transformations every day. For many years prior to the 2000s, banking transactions were predominantly labor-intensive and conducted through physical branches. However, with the advancement of computer and internet technologies, these transactions are rapidly shifting towards digitization.

The introduction of ATMs marked the initial step towards digitalization for customers in the banking sector. Over time, internet banking emerged as a pivotal development, enabling customers to access a wide range of banking services online. The scope of services available through internet banking continues to expand, driven by ongoing advancements in technology.

Customers Own Their Own Data with Open Banking

Furthermore, mobile banking has gained prominence, offering customers convenient access to their accounts and an array of banking services through their smartphones and tablets. One of the most notable aspects of mobile banking is the emphasis on personalization, tailoring banking transactions to individual customer preferences and needs.

Despite the numerous benefits of internet and mobile banking, the proliferation of services and the increasing complexity of financial processes have posed challenges, particularly for companies that engage with multiple banks. This is where “Open Banking” comes into play as a groundbreaking solution in the digital world, addressing the complexity and management difficulties that have emerged.

Open Banking empowers customers by allowing them to have greater control over their financial data. It introduces a framework where customers can securely share their financial information with third-party applications and services, offering a more streamlined and personalized banking experience. This technology not only enhances the convenience of banking but also opens up new possibilities for innovation in the financial industry.

In conclusion, as our world continues to embrace digitalization, the banking sector is at the forefront of this transformation. Internet and mobile banking have revolutionized the way customers access and manage their finances, and Open Banking is the next frontier, promising even greater control and personalization. This evolution is reshaping the financial landscape and creating opportunities for a more efficient and customer-centric banking experience.

The Bridge Between Banks and Customers: Open Banking and Fintechs

The main difference between traditional banking and Open Banking is that a third party comes between banks and their customers. Open Banking, which allows transactions from different banks to be collected on a single platform/screen/application and the data obtained to be processed on a transaction basis independent of banks, invites third party companies; in other words, fintechs to the process.

A New Customer Experience: Open Banking

Digital platforms that offer these banks and transactions on a single screen instead of visiting the online channels of each bank separately for your transactions in banks constitute the heart of open banking technology. In this respect, another difference between normal banking transactions and open banking is the customer experience. Open banking applications, developed in accordance with the authorisations and definitions determined within the framework of the laws, securely access the systems of the banks you work with based on the permission given by the customers and bring together the data you need for you.

Time and Labour Savings in Financial Processes

Especially for companies working with different banks, the most important advantage of the Open Banking era compared to the normal banking era is the ease of access and analysis of data. In addition to getting rid of the trouble of tracking your transactions separately from each bank, Open Banking platforms offer the opportunity to easily process the data you obtain. Open Banking applications, which can be integrated with ERP/accounting software, minimise operational burdens in the management processes of companies.

In summary, Open Banking helps you save significant labour and time compared to conventional banking methods in the processes of collecting, analysing, reporting and archiving data in banking transactions.

The concept of API services lies behind these capabilities of the open banking ecosystem, which eliminates the bank distinction in banking transactions and provides customers with access to all bank accounts through a single application.

API, which is the abbreviation of the English equivalent of application programming interface, enables the secure transfer of customer and account information from banks to third-party applications. The transfer of API services, which act as a bridge between the bank and the customer, to a third application allows the banking experience to change radically. In other words, open banking platforms that bring data and banking transactions to the forefront, not banks, pave the way for many new solutions to enter our lives within the possibilities offered by API services.

What is API?

API (Application Programming Interface) is the abbreviation of “Application Programming Interface” in English. These interfaces enable secure transfer of customer and account information from banks to third-party applications. APIs change the banking experience by acting as a bridge between the bank and the customer.

A Different Banking Experience with API Services

The transfer of data between individual or commercial bank customers and their banks through a third application via API facilitates access to information while enabling tracking, data analysis, reporting and archiving. The biggest advantage is that it saves labor and time in collecting, aggregating and reporting the data on the banking transactions of the enterprises separately from each bank. Thus, the possibility of transaction errors in banking processes is minimized.

API services also allow banking data to be shared with other ERP software in each transaction or in bulk. In this respect, it enables businesses to save time and labor once again, while ensuring that many processes in the banking focus of businesses are realized automatically on digital platforms.

Data Access and Analysis

Moving data to a third application via API facilitates data access. This enables customers to track and analyse data related to their banking transactions more easily.

Reporting and Archive Facility

Open banking services simplify reporting and archiving processes. In this way, customers can easily create and archive reports on their financial transactions.

Advantages for Businesses

Especially for businesses, open banking services provide a great convenience. Collecting the data related to banking transactions separately from each bank and bringing them together saves time and labour for businesses. This also helps to minimise transaction errors.

Eçözüm Supports Businesses with Open Banking Solutions

Eçözüm, one of Turkey’s most powerful brands in open banking and digital financial solutions, offers solutions to the banking needs of businesses with NetEkstre, Netahsilat, POSRapor and E-Dbs products. With the help of API services, financial solutions that emerge by interpreting the data of businesses from banks facilitate the payment and collection processes of businesses and the management of POS and bank accounts.

With NetEkstre, businesses that can control all their accounts, regardless of bank, can instantly monitor all movements in their bank accounts.

Netahsilat, on the other hand, brings the collections made by companies from their dealers, sub-dealers, business partners and customers to a secure and fast platform while organizing them.

POSRapor brings together all physical or virtual POSs owned by companies in different banks in a single application, enabling the control of POSs, bank returns and instant tracking of sales revenues.

The E-Dbs product, on the other hand, guarantees the planned collections to be made by companies from their business partners and dealers within the direct debit system, thus enabling the healthy functioning of cash flow.