The overall vision for BankiFi is to enable banks to become far more prevalent and meaningful in their customers lives. To be able to do that, banks need to offer more products and services, and not only their own manufactured products, but those of other parties.
Open Banking, the PSD2 and GDPR open the door for that to happen, and ultimately to be meaningful it is likely that banks will have to offer non-financial products as well as financial products. Particularly business and corporate customers are a segment under pressure, having been dealt with poorly in the aftermath of 2008, as well as a potentially very profitable and therefore competitive client group.
BankiFi has identified a gap in the market within business banking. PocketTreasurer combines aspects of cash management with lending and pushes advice out to customers on the best way to manage and optimize their working capital. The solution allows the bank that operates the PocketTreasurer service to become the trusted advisor for their business customers. Furthermore, in Europe as a result of PSD2, the bank that operates the PocketTreasurer service can service its customers in a multi-bank setting and does not even need to have a banking relationship with the business customer user. All they need is the consent under the PSD2 to get access to their account(s) and transaction data and to make payments on their behalf.
PocketTreasurer combines a number of capabilities that are built on top of the BankiFi platform – Payments on Behalf Of (POBO), Cash Forecasting, Pooling and Sweeping, Factoring and Lending. These are all capabilities that are typically the reserve of large corporates. Furthermore, they are not services that are typically offered by accounting package vendors, or ERP vendors like SAP. They would, however, be value add to both the small business customer and to the accounting and ERP vendors alike.
POBO, Sweeping and Pooling services are typically offered to customers who have multiple bank relationships and wish to aggregate their overall balance position, to forecast liquidity and instruct their main bank to make payments from accounts held at other banks. These facilities often require the business to be a member of SWIFT even if it is for domestic payments, the cost of which is huge and on top of that the technology requirements are equally cost prohibitive.
The PSD2 now offers a simple easy alternative as regulated TPPs will be able to provide the same services through simple APIs and therefore be able to offer services to small businesses where there need is equally great. The underlying BankiFi platform is here of paramount importance due to the many chains of consent across the various parties from accounting packages to niche fintech (lending) partners and the bank.
Consent in the context of adding value service to business and corporate customers exceeds the requirements of PSD2 around access to account information and payments. In order to create relevant alerts about invoices to be paid, lending requirements and cash management, consent needs to be created and recorded about all other – more GDPR akin – data held in the accounting package and any other relevant external data sources. BankiFi has been designed with this in mind: PSD2, GDPR and whatever next.