Open Banking Solutions

 

Open banking solutions are the main instruments, driving the innovations and initiatives, related to open banking, forwards. Out in the open market, the ingenuity and functionality of these solutions are the things that matter the most for the customer. Nordigen is one of the market leaders in creating innovative and cutting-edge open banking solutions for developers and businesses. By taking advantage of the future’s banking standard today, you can move ahead of your competition, increase revenue streams, add more clients and broaden your clientele. It’s time to shine the spotlight on solutions for open banking!

Open Banking Aggregation Unit Testing Hackerrank Solution

In the world of open banking, the term ‘Aggregation’ is quite widespread. But what exactly does it mean? The term ‘Aggregation’ means the same in open banking just as it does anywhere else. It’s combination, accumulation or collection. This means that Aggregation modules or units will be able to connect to multiple banks via one single API. Hence the term aggregation – combining multiple links via one source. Lots of these APIs and similar tools used in areas like account aggregation are developed by programmers who are hired through 3rd party services like HackerRank, etc.

Many companies only have tech support sectors and aren’t the actual developers having only bought the rights to a script or made an order to have a program created.

But let’s move back to open banking’s aggregation unit or tool for account aggregation. What are its primary uses and benefits?

In order to get approved for many financial services and products, clients need to pass checks and evaluations. For things like tenancy, mortgage, loans, leases, etc., there has to be a thorough credit check that involves seeing a person’s bank statements from a determined period (usually 6-24 months, but depends on location). If information and relevant data is in one place, the bank or any other company that’s doing a credit check, will be able to make a decision quicker. Furthermore, open banking has allowed companies with account aggregation units and credit scoring tools can automate pretty much every single aspect of loaning.

Open Banking Solution Providers

Open banking solution providers are usually labelled as fintech companies. They focus on the development of new and continuous improvement of current tools that are being used by consumers.

Providers are scattered all over the globe but most of them are concentrated within the European Union, the United Kingdom and countries like Hong Kong as well as Australia. There are also companies in other countries but since there aren’t enforceable regulations in place, the total number of providers is relatively small.

Providers for solutions can be categorized into many different categories and subcategories. Some are PISP’s, others are just developers of niche solutions. In general, every company that creates a product for and/or with open banking, can be considered as an open banking solutions provider.

How to know whether the creator/developer of open banking payment solutions is competent and trustworthy? There isn’t a universal method that can help you find out every time, but some guidelines might help finding the most dependable and trustworthy partners!

  1. Make sure that the developer/provider is licensed and accredited. Look at the corresponding government’s register of licensed providers of financial services or a dedicated register for open banking developers.
  2. Analyze the open banking solution pricing plans as well as the nuances of your data usage as well as the legal contract that you get into.
  3. If the service is a subscription, find out the terms for cancellation.
  4. Look at the reviews of the company or case studies that it has published with genuine testimonials

How open banking solutions are changing the world

For the most part, open banking is considered to be the next step for the banking industry. Sooner or later, conservative banks have to move forward and open banking concept seems to be up next.

Right now, the technological capabilities of open banking are just expanding and in their early stages. However, these solutions have already made a significant impact on how the world around us, works.

For example, even a few years back you had to go through a grueling and overly complex bureaucratic process to apply for tenancy in many countries. Providing bank statements, income verification, proof of residence, etc. It all took time and effort to gather. Nowadays, everything a person needs to do in the UK in order to be ready for tenancy is to just click a button online. Authorize and verify your identity and the necessary data will be automatically sent to the property owner/landlord.

Other uses for open banking are mostly related to day-to-day and other important financial transactions, e.g. applying for loans or a mortgage. Verification processes can be automated almost entirely and most financial institutions can improve application evaluation times, increase customer satisfaction and save time and money on administrative tasks. For customers it also means faster verification, more accessible financial products and more individualization in terms of better terms for products.

Nordigen – innovative open banking solutions for developers

Nordigen is one of the leading freemium solutions for developers of fintech or financial services. Nordigen offers various different tools that you can use or enable your clients to use in order to access and connect with over 2,000 banks from all over the European continent.

Nordigen products and services are versatile and can be adapted to suit many different needs. Case studies can show you a wide array of different successful implementations. The most common applications for our solutions is consumer lending, loan brokerage, mortgage lending as well as buy now, pay later solutions.

Case studies show thee prominence of an open banking solution by Nordigen because there are numerous examples of companies increasing efficiency and streamlining processes with the help of open banking tools.

Financing companies can now do most of their verifications automatically and digitally. Fill out much less paperwork and allocate resources to areas that give back added value. By automating verifications and reducing the administrative burden, any business can reduce running costs. Brokers are able to quickly match customers and lenders by comparing both of their needs and finding the best pair.

Overall, Nordigen offers three main products. Account information tools connect to the APIs of major European banks and give access to free PSD2 data. Insights offers a deeper look into income verification as well as verification for active liabilities. Finally, you have risk insights that can notice and outline risky behavior as well as prevent businesses from verifying potentially risky requests.

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