BTL 820 - Connected Banking

 

The Banking Tutor’s Lessons

BTL 820                                                                   03-09-2025

Connected Banking

Connected banking integrates multiple enterprise bank accounts, payments, and reconciliation processes into a single platform, typically using secure Application Programming Interfaces (APIs) for real-time data sharing and management. This creates a unified view for individuals and businesses, eliminating the need to log into separate bank portals to manage finances, process transactions, and gain complete visibility into their financial health.

Working of Connected Banking

API Integration: Banks use APIs to securely connect their services with other digital platforms and applications.

Data Sharing: With customer consent, this allows for the consent-driven sharing of financial data across different systems.

Unified Dashboard: Users access a single dashboard to view real-time balances, transaction histories, and manage various financial activities.

Benefits for Businesses

Streamlined Operations: Businesses can manage payroll, vendor payments, customer collections, and financial reporting from one platform.

Improved Financial Visibility: A unified view of all accounts provides real-time insights into cash flow and financial health.

Reduced Errors: Automation through a connected system minimizes manual data entry, which helps to reduce errors.

Enhanced Efficiency: Saves time and resources by centralizing financial management tasks.

Benefits for Individuals

Simplified Personal Finance:  Individuals can view and manage all their accounts across different banks in one place, eliminating the need for multiple logins.

Convenient Access: Provides a seamless and convenient banking experience from a single digital interface.

Key Technologies

APIs (Application Programming Interfaces):  The core technology that enables different systems to communicate and share data securely.

Cloud Computing: Allows for the scalable and flexible delivery of banking services through digital platforms.

Real-Time Data Analytics: Provides up-to-the-minute information for better financial decision-making.

In essence, connected banking creates a centralized "command center" for financial management, making it easier to manage money, save time, and gain greater control over financial activities.

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