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How automation can transform your financial services offering

The growth of Open Banking and APIs

PSD2 was officially adopted by the European parliament in October 2015 and later implemented in 2018. Since then, the regulation has not only resulted in the introduction of new technical standards for payment service providers, but it has also fostered innovation throughout the financial industry, such as the rise of APIs.


Application programme interfaces (APIs) have become increasingly popular since PSD2 was introduced. Giving payment service providers - in PSD2 jargon also called third party providers (TPPs) – automated access to customers’ information via APIs makes financial services quicker and more efficient for businesses and their customers.


Why use APIs for increased automation?

APIs allow for easy communication between solution providers and financial institutions. TPPs, such as payment service providers (PSPs), can integrate new technology into their business structure using the services of other financial institutions – in PSD2 also called as Account Servicing Payment Services Providers’ (ASPSPs).


The TPP can integrate the solutions on offer from an ASPSP using APIs, which provide automated access between the two businesses’ systems. This enables TPPs to build their own flexible and automated financial services from the services that the ASPSP offers. For example, payment service providers can now access IBAN account issuing through the APIs and offer this to their own customers.


The use of APIs also removes the need for businesses to invest in new staff, departments and the facilities necessary to house them – all of which are typically required to build financial services. This is because TPPs can turn to specialist providers like ONPEX to integrate solutions into their existing systems instead.


Furthermore, by working with an ASPSP, TPPs can pick and choose the features they want so they can tailor their services exactly to their customers’ needs. The ASPSP then manages the APIs in the back-end, taking pressure away from the front business.


Automation is essential for cross-border payments

Automated solutions are crucial for businesses looking to extend their services into new markets. This is because the processes necessary to facilitate and settle payments in different countries are often complex and require access to a network of local clearing schemes, such as cross-border SWIFT, European SEPA or UK Faster Payments. Through the use of API technology, TTPs can instantly connect with clearing systems and a range of automated features that promote cost-efficiency and remove friction during the payment process.


Businesses must therefore have access to solutions that enable greater efficiency and speed through automation. API-based platforms can help businesses achieve this as once connected to a platform that enables access to clearing systems and payments technology, PSPs can reduce friction and costs through the seamless connections and automation that APIs provide.

Making the most of automated solutions

To remain competitive in a financial industry where customers are increasingly demanding automation, transparency and simplicity, businesses should be making the most of automated solutions and recognize the benefits they offer. They can gain a competitive edge and integrate automation into their everyday processes by using APIs – overall reducing costs, increasing efficiency and enabling easy cross-border trade.


Often, TPPs are looking for multi-currency IBAN account issuing, which allows them to trade across borders. Using API-based platforms such as ONPEX’, financial institutions can achieve this. They can open IBAN accounts and offer cross-border payments to their customers in multiple currencies making use of ONPEX flexible Banking-as-a-Service (BaaS) platform.


This is because API-based BaaS platforms also offer solutions that support cross-border trading such as in-account and in-transfer foreign exchange (FX) capabilities. At ONPEX, our solutions automate currency conversion and reduce costs associated with FX. This ensures that TPPs and their customers can execute payments directly through accounts across the globe in the relevant currency.


In all, automation is essential for businesses looking to operate in the highly competitive financial market. API-based solutions that enable automation give TPPs access to the payment networks and schemes necessary to facilitate cross-border payments. They also reduce costs while such payments are being made and remove the need to invest in new assets that would otherwise be required to manage such solutions.


If you want to hear more about ONPEX’ automated Banking-as-a-Service, contact us at: www.onpex.com/contact

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ONPEX is a leading provider of transaction banking and cross-border payment services to fintechs and digital businesses. Based on our flexible, API-driven BaaS platform, our clients create user-friendly, compliant and cost-efficient solutions.

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