How open banking drives real-time payments traction

Competitive forces in the payments and financial services sector have driven two key trends in the U.S.: the acceleration of payments, and the adoption of open banking frameworks.

Both are key to addressing the modern demands of end-users. Use-cases for real-time payment capabilities continue to grow for consumers, small businesses and corporates, while the open banking business model is proliferating beyond the ability for FinTechs to loop into their customers’ bank account data, and into new opportunities like enhanced small business loan underwriting and automated accounting.

As faster payment networks continue to roll out onto the market, Deborah Kovacs, co-founder and chief product officer of core banking technology provider Finxact, said there is also a growing opportunity for these two trends to converge. Open banking frameworks can support a more seamless integration and on-boarding process for financial institutions looking to loop into new payment networks and offer those services to their own customers.

 

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