“Open”: Indian Fintech Digital Bank & NeoBanking Platform

• 14 May 2020 | 1584 Views | By

Fintech is a term utilized for the organizations which try to solve the issues related to finance with the help of technology. The startup is also a recent term which means the new ideas but lack of funds necessary to start the business. According to the government, a startup should be less than 3 years of age from when it is incorporated. Thus fintech startup is consolidated business comprehending issues in the finance sector.

Financial Technology (Fintech) is utilized to portray new tech that tries to improve and computerize the delivery and utilization of financial services. ​​​At its center, fintech is used to help organizations, entrepreneurs, and customers better deal with their money-related activities, procedures, and lives by using particular programming and calculations that are done on PCs and, progressively, cell phones.

When fintech developed in the 21st Century, the term was at first applied to the innovation utilized at the back-end frameworks of set up money related foundations. ​Since at that point, in any case, there has been a move to more consumer-oriented administrations and accordingly a more customer arranged services. Fintech now incorporates various areas and ventures, for example, education, retail banking, programs for fundraising, and charitable.

Fintech now portrays different types of monetary exercises, for example, cash transfer, depositing money with the use of mobile, bypassing a bank office to apply for credit, fund-raising for a business startup, or dealing with your ventures, for the most part without the help of an individual. 

Innovation of New Tech

New technologies, similar to AI and machine learning, examining analytics, information-driven advertising, will remove the mystery and propensity from budgetary choices. “Learning” applications will not only learn user behavior but will also get to know about users spending and sparing choices better. Fintech is likewise a sharp connector of automated customer support innovation, using chatbots to and AI interfaces to help clients with essential undertakings and furthermore hold down staffing costs. The technology in the finance industry, known as Fintech is likewise being utilized to fight against fraud by knowing the information of installment history to stop exchanges that are not in the norm.

• Rise of Cryptocurrency: Also, digital payments are being used everywhere now.  

• Blockchain innovation, including Ethereum, an appropriated ledger innovation that keeps up records on a system of PCs, but it does not have the main ledger. How does a Blockchain work?

• Open banking, an idea that inclines toward the blockchain and places that outsiders tend to approach bank information to build new applications that make an associated system of monetary foundations and outsider suppliers.

• Robo-guides, for example, Betterment, use calculations to robotize investment advice to bring down its expense and increment options.

• Unbanked/underbanked, administrations that try to serve low-pay people who have low income or underserved by conventional banks.

• Cybersecurity, given the expansion of cybercrime and the decentralized stockpiling of information, cybersecurity and fintech are interlaced.

About “Open”

Open was founded in 2017 and it is helping businesses in banking difficulties by startups and SMEs. It offers a business account partnered with banks, which assists organizations with automating and run their funds adequately. Once you have created the business account, you can use all the tools to send and receive payments.

It also has an automated bookkeeping tool that helps in business. The platform that Open has given us has just partnered to more than 100,000 SMEs and handling over Rs 35,000 crores in an exchange. This platform additionally includes more than 20,000 SMEs consistently, making it the quickest developing SME centered neo-banking administration internationally. 

Learn more about Neobanks and Their Global Impact in Banking.

Open is likewise improving its API banking suite with a new layer – a programmable bank account that will empower designers to control cash automatically, assemble their own highlights on the financial balance, and safely coordinate with different administrations. It intends to go through the funding stage to scale the group, launch different items and services that provide value to reach more businesses in the next year. Open is quickly set to dispatch two new items to upgrade its business banking suggestion; the Open+ card, a business Mastercard with a 30-day premium free credit line, for adventure sponsored new businesses and Layer, a one of a kind programmable financial balance for designers.

Benefits of Digital Banking with “Open”

Business owners need to look after their whole business single-handedly. To make the process easy, Open has different advantages once you took their plan. Their benefits include – 

1. Automated Accounting

The latest technologies have made our life easy.  Using automation anyone can simplify their process which was previously difficult to do or requires a lot of manual work. Using Open’s automated accounting you can prepare your bookkeeping, GST, tax-filing without much work. You can also generate reports like balance sheets, profit & loss, etc. With this tool, you can automatically pay your employees using a smart payroll system. This feature has helped many startups and is satisfied with the service.

2. Account Opening in Minutes

Open is associated with ICICI bank since its launch. If you already have an account with this bank, then you can move ahead, otherwise, you will have to create it first. Now you can automatically track your bank transactions with all customer’s information in one place. You can also connect your account with other banks to manage the banking process. The most important feature is API plugins. You can customize the workflow according to the way you want. 

3. Integrated Payment Gateway

The payment procedure for paying your customers and vendors is easy. You will get far more options than any apps. You can also create GST invoices and send them to other businesses with a fingertip. It accepts payments from most of the bank features like NEFT, RTGS, IMPS using virtual accounts. One of the favorite features that everyone loves about Open is that you can send money with just an email and mobile number. 

4. API integration

You can integrate Open to your app with this API integration feature. The payment APIs are easy to use and works well with all the apps you know. Every API has additional security that helps in securing the payments. If you want to mass payout, Open will help you in bulk account creation as well as payouts. Most importantly, you can test the API before actually taking it live. 

5. Customer support

Open has the best customer support and helps in every issue their customer’s face. Even the smallest problem has been solved by their team. They know the solution for each problem and thus everyone loves using the Open app.

Advantages of Automation

• Automation reduces the staff

On account of records payable, providers may send numerous invoices as a connection trying to get paid. The business administrator scans and messages the receipt to the records division. This may happen more than once making additional work for the provider and furthermore supervisor. Automating your bookkeeping procedure refutes this procedure and prompts the social changes inside the procedure and mechanizes the association between the provider and your ERP/Finance framework. 

• Understanding the source of documents 

Analyzing from where the sources are coming will make improvements and is the initial phase in lessening manual information that records printed copy data. Data can be caught from, printed copy mail, email connections, Electronic Data Interchange (EDI), inside procedures, directors accepting reports, etc.

• Accuracy

Manual work will have errors. Automating the entire process right from collecting documents to process payments will surely help in maintaining accuracy. This helps in maintaining brand value. 

Thus, the Open app will surely change the fintech industry in the future. It has all the benefits that a leading startup would require. As automation is already ruling other industries, it would not take a long time to rule in the finance sector. With this, all the businesses will have easy workflows and payouts. 

Disadvantages of Automation – 

The risks associated with the automation innovation, at last, will substitute humans. It includes the staff losing their jobs because of automated machines. Investment cost includes buying software for an automated solution that requires a minimum amount of investment. Be that as it may, this factor ought to be differentiated to the advantages as far as efficiency and consistency matters. There will also be less flexibility with automated systems and so human interaction will be required.