How Product Managers are Cutting Costs Upto 90% with Open Banking

Open banking is changing the financial services industry, paving the way for innovations that are redefining how businesses and financial institutions interact. The shift towards a more open infrastructure has created opportunities for accelerated modernisation and service diversity.

What You’ll Discover in This Blog:

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Introduction

In today’s competitive business environment, every penny counts. For product managers and CFOs, the pressure to reduce costs while maintaining high operational efficiency and security is immense. Enter open banking – a game-changing innovation that is transforming the financial landscape. Finexer , a leader in this revolution, offers state-of-the-art open banking solutions designed to slash transaction costs by up to 90%, streamline operations, and enhance customer satisfaction. This blog will explore how implementing Finexer’s open banking platform can help you achieve significant cost savings and operational improvements, making your financial processes smoother, faster, and more secure.

Implementing Finexer’s open banking solutions can lead to significant cost savings across various operational aspects of your business. Here’s a detailed look at how our platform can help you cut expenses:

Instant Payments

• Utilises secure account-to-account (A2A) payments.
• Bypasses intermediaries like card networks and acquirers.
• Reduces transaction costs by up to 90% with open banking

This significant reduction in transaction costs enables product managers to reallocate financial resources to other critical areas such as product development and marketing. This reallocation can enhance product offerings and improve market competitiveness.

CFOs can improve the company’s bottom line by reducing operational expenses. This cost efficiency supports better financial planning and enhances the company’s financial stability and agility.

Operational Efficiency

Automated Processes:

• Automates payment initiations, verifications, and reconciliations.
• Minimises manual intervention and errors.
• Reduces labour costs and increases operational efficiency through open banking

With reduced manual intervention, product managers can focus on strategic initiatives and innovation rather than being bogged down by administrative tasks. This shift can drive product improvements and faster time-to-market.

Streamlined operations lead to lower operational costs and increased productivity. CFOs can leverage these efficiencies to optimise budget allocation and improve overall financial performance.

Fraud and Security Management

• Enhanced Security:
  • Incorporates advanced encryption and fraud detection.
  • Ensures compliance with PSD2 and other regulatory standards.
  • Mitigates fraud risks and avoids costs related to fraud losses and regulatory fines with open banking

Enhanced security measures protect product integrity and customer trust. This security fosters a reliable brand reputation, essential for long-term success.

By minimising fraud and compliance risks, CFOs can safeguard the company’s financial assets and avoid costly penalties. This protection ensures more accurate financial forecasting and risk management.

Customer Onboarding and Verification

Efficient KYC/KYB Processes:

• Streamlines Know Your Customer (KYC) and Know Your Business (KYB) processes.
• Automates identity and bank information verification.
• Reduces time and resources required for onboarding.
• Lowers administrative costs and improves customer onboarding experience.

Enhanced security measures protect product integrity and customer trust. This security fosters a reliable brand reputation, essential for long-term success.

By minimising fraud and compliance risks, CFOs can safeguard the company’s financial assets and avoid costly penalties. This protection ensures more accurate financial forecasting and risk management.

Payment Processing

Bulk and Recurring Payments:

• Simplifies bulk payments and automates recurring transactions.
• Utilises Variable Recurring Payments (VRP) and Sweeping solutions.
• Reduces administrative burden of manual payment processing.
• Decreases likelihood of errors and optimises cash flow management.
• Bulk transactions often come with lower fees compared to individual transactions,businesses can benefit from reduced transaction costs, leading to significant savings over time.

Data Management

Real-Time Financial Data:

• Provides access to real-time bank transaction data.
• Enhances accuracy and efficiency of financial planning and decision-making.
• Reduces costs associated with data inaccuracies and poor financial management with open banking

Access to accurate, real-time data enables product managers to make informed decisions, improving product strategy and market responsiveness.Effective data management minimises financial risks and ensures regulatory compliance. CFOs can use this accurate data for precise financial reporting and strategic planning.

Integration and Customisation

Seamless Integration:

• API-driven platform allows quick and seamless integration with existing systems.
• Provides a cohesive and streamlined operational environment through open banking
• Reduces development and maintenance costs.

Seamless integration of financial systems allows product managers to work more efficiently and collaborate across departments. This integration supports cohesive product development and innovation.Reduced development and maintenance costs improve financial performance. CFOs benefit from streamlined operations that enhance overall business efficiency and scalability.

Customer Experience

• Improved Service Delivery:
  • Offers instant settlements and multiple payment options (in-app payments, online links, QR codes).
  • Enhances customer satisfaction and loyalty.
  • Reduces costs associated with customer churn and acquisition with open banking

Enhanced service delivery and multiple payment options improve customer satisfaction, driving customer loyalty and reducing churn rates. Product managers can focus on customer-centric innovations. Satisfied customers lead to sustained revenue and lower acquisition costs. CFOs can see improved profitability and long-term financial health.

Case Study: Faster Loan Disbursement with Open Banking by Infosys

Background: Infosys collaborated with a leading non-banking financial company (NBFC) in India, which provides working capital and business loans to SMEs. The goal was to implement an open banking account aggregator platform to expedite loan disbursements, ensuring a quick and seamless process with minimal documentation and no collateral requirements.

Implementation: Infosys leveraged its Banking API Platform to build the Account Aggregator (AA) ecosystem in compliance with the Reserve Bank of India’s specifications. Key features of this implementation included:

• Account Discovery and Linking: Facilitated the linking of customer accounts to gather financial information.
• Data Flow and Consent Management: Enabled real-time financial information aggregation with robust consent management processes.
• Cloud-Enabled Infrastructure: Deployed on Amazon Kubernetes clusters for scalability and ease of integration.
• Security Measures: Implemented mutual TLS, digital signatures, and encryption to ensure data security and compliance.

Results

• Cost Savings: The bank realised a 29% net cost savings as a result of these transformations.
• Faster Time to Market: The implementation resulted in a 50% reduction in the time required to bring the solution to market, including UI customisation and testing efforts.
• Compliance: Achieved 100% compliance with open banking technical specifications.
• Improved User Experience: Provided a smooth, hassle-free user experience through self-service third-party onboarding.
• Scalability and Flexibility: The platform’s microservices-based architecture ensured high scalability, lightweight operations, and ease of future enhancements.

This case study exemplifies how open banking solutions can significantly enhance operational efficiency and customer satisfaction while ensuring regulatory compliance. By leveraging Infosys’ Banking API Platform, the NBFC was able to expedite loan disbursements, reduce operational costs, and provide a superior customer experience.

For more detailed information, you can visit the Infosys case study page here

Unlock Significant Cost Savings with Finexer

Finexer Product	Product Overview	Cost Cutting Benefits
Instant Payments	Enables secure and immediate account-to-account (A2A) transfers, bypassing traditional card networks and acquirers.	Reduces transaction costs by eliminating intermediaries. Improved cash flow management, reducing the need for short-term financing.
Bulk Payments	Automates the processing of multiple transactions in a single batch.	Minimises manual processing, lowering labour costs. Ensures consistency and accuracy, reducing costs associated with errors and reconciliations.
Recurring Payments	Automates regular, scheduled payments.	Maintains a predictable cash flow, aiding in financial planning and resource allocation.Ensures timely payments, improving relationships with vendors and potentially leading to better terms and discounts.
Verification API	Streamlines the KYC and KYB processes by automating identity and bank information verification.	Reduces the time and resources required for customer and business onboarding. Minimises risks associated with non-compliance, avoiding potential fines.
Data Aggregation	Provides real-time access to financial data across multiple accounts.	Real-time data access improves financial planning and decision-making. Minimises risks associated with data inaccuracies, ensuring better financial management.
Fraud Detection and Security	Includes top-tier encryption and real-time fraud detection.	Reduces potential financial losses due to fraud. – Ensures compliance with financial regulations, avoiding fines and enhancing customer trust.

By leveraging Finexer’s comprehensive suite of products, businesses can significantly reduce costs, enhance operational efficiency, and improve financial stability. Finexer’s solutions provide a cohesive and streamlined approach to managing financial transactions and data, offering substantial cost savings and a robust foundation for business growth.