The future of small business banking is coming.
In just under two months’ time, (13th January to be exact) Open Banking will be launched by the 9 largest UK banks. Following soon after will be new tools and services built by finance technology businesses to help small business owners get a handle on their finances.
So in this post, I'll be covering what benefits small business owners can expect if they open their arms to Open Banking and the services it'll provide.
Let’s start with the thing every small business owner needs more of.
Financial tools and aides can be created off the back of Open Banking that will eliminate the need to fill out numerous spreadsheets or even to hire a specialist.
Cash flow trackers, spending habits and financial forecasting are just some of the tools possible using Open Banking technology. Freeing up time for you to spend on what you are good at. Running your business.
Transparent banking experience
Whether in your personal or business account, I'm sure at some point, many of you reading this will have accidentally entered an unarranged overdraft and faced an extortionate daily fee.
Wouldn't it be great if you got an alert each time you were about to become overdrawn?
Well, with Open Banking this will become a reality.
Imagine an app on your phone that uses predictive forecasting to alert you when your account will become overdrawn, allowing you to proactively respond and adjust the funds in your account before you incur a daily fee. All in one place!
Clear view of financial health
Every small business owner needs to know what state their business' finances and credit score are in to be able to confidently approach lenders and negotiate terms.
Open Banking allows for a live feed of your business' finances combined with your company and personal credit score to give you an accurate view of your financial health and highlighting any negatives that might arise with potential finance applications.
Simple information transfers
When you’re ready to commit to getting finance for growth or to smooth out spikes in cash flow, there's often a sense of overwhelming dread when you realise the amount of admin and paperwork you need to dig out of your files and send via snail-mail. Wasting your own time and putting your business on pause as you wait for a response from your lender.
Open Banking will make the act of applying for a loan quicker and easier. A simple transfer of all the information your financial provider needs can be finalised within minutes and a loan offer can be accepted almost instantaneously.
Open Banking allows for the secure transfer of your data to a trusted third party. This means that the future process of applying for a loan or even switching service providers will be slick, seamless and a lot less work.
Every little helps in a small business. So the staying on top of cost can drastically improve your bottom line.
Open Banking creates the opportunity for technology to be created that actively monitors your current spending and offers alternative providers to save money and get better deals.
Even small wins on simple necessities such as office supplies or mobile contracts can make a huge difference over a financial year.
Now, I bet you're thinking this sounds great, when can I get my hands on this tech?
Be the first in line
You can be one of the first in line to get your hands on Open Banking technology by joining our beta test.
With the needs of small business owners in mind, we’re creating a tool to help you take full control of your cash flow and enable you to see into your financial future.
You can find out more about our Handle Open Banking beta test here.
To sign up for our beta test and get your hands on the latest financial tool for free, simply enter your email address below and we’ll be in touch.
If you have any questions regarding Open Banking or our beta test, you can get in touch with us at [email protected].