Fintech and Traditional Bank Collaborations and Open Banking Are Becoming More Prevalent Globally

Traditional bank and Fintech collaboration and Open Banking are becoming quite common for financial institutions throughout the world that are planning to update their product offerings for small and medium-sized businesses (SMBs).

India-based private lending institution SBM Bank recently teamed up with PayNearby to introduce various Open Banking solutions for each others’ clients. SMB Bank and PayNearby have committed to a memorandum of understanding (MOU) to launch an “Open Banking network,” and provide a wider range of financial services.

SBM Bank intends to provide various banking solutions via PayNearby’s network of micro-enterprises and merchants through API integrations.

Sidharth Rath, SMB bank’s managing director and CEO, stated:

“At SBM Bank, banking has become an on-demand experience for the new-age customers. Branch locations, banking hours or normal waiting time — these concepts are fast eroding.”

He also noted that the collaboration will allow for improved access to standard banking services through the network of micro-businesses and merchants, which will stimulate economic growth and development.

Several local financial institutions recently revealed that they were working cooperatively with banking Software-as-a-Service (SaaS) and loan tech service developers to enhance their lending products for small businesses and corporations.

The Huntington National Bank teamed up with Automated Financial Systems (AFS) in order to integrate with its commercial lending platform, called AFSVision. The software platform links to other external systems for efficient processing and management of commercial loans.

Australia’s banking challenger Judo Bank confirmed that it will be integrating InfraRisk’s commercial lending SaaS into its small business (SMB) lending operations. InfraRisk says it will integrate Credit Value Maximizer (CVM), its credit management platform, to the financial institution for improved management of borrower profiles and loan pricing.

US-headquartered Freedom Bank confirmed that it’s teaming up with StreetShares crowdfunding platform to enhance its SMB lending business, and strengthen its working relationships with small businesses. Integrating StreetShares’ technology will allow Freedom Bank to expedite the lending procedures for SMB borrowers, by quickly linking them to unsecured lines of credit and business loans.

Germany-based Penta, a small business banking solution provider, recently confirmed its integration with iwoca, a small business lending portal. This will allow Penta’s customers to apply for and acquire funding through iwoca from the bank platform itself.

UK-based banking challenger Starling Bank recently revealed that QuickBooks, a small business accounting solution, would be accessible through the Starling Business Marketplace. Starling Bank will help its small business customers with integrating their account data directly and automatically into QuickBooks for improved and accurate accounting and data entry.

Qatar International Islamic Bank announced that it’s teaming up with IBM Safer Payments, which will add its cross-channel fraud protection tech into the bank to prevent payments-related fraudulent activities.

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