How SMEs can benefit from Open Banking: an EBA report
At the end of May, the Euro Banking Association (EBA) released a report on the opportunities offered to small and medium-sized enterprises (SMEs) through Open Banking. How can this diverse and heterogeneous customer segment be better served through tailored financial services and value-added offerings based on Open Banking?
The report, entitled “Open Banking for SMEs – Enhancing financial services for the backbone of Europe’s economy”, aims at providing a comprehensive overview of the specific challenges facing the SME sector.
Key findings of the report
- The SME sector is heterogeneous and highly impacted by digitalization.
- SMEs’ financial needs are complex which has made it difficult to serve this customer segment with tailored financial services.
- An evolving ecosystem provides the foundation for a host of new, innovative propositions for SMEs.
- Leveraging Open Banking can lead to a win-win-win situation for SMEs and different financial service providers.
- Different Open Banking strategies can be pursued, based on a direct (incorporation) or indirect (provision) distribution model or a combination of multiple approaches.
About the Euro Banking Association
The mission of the EBA is to foster dialogue and experience exchange amongst payments industry practitioners towards a pan-European vision for payments. The association involves member organizations and relevant stakeholders in thought leadership on innovation, helping members to understand and implement regulation and by supporting the development of market practices.
Members can access the report HERE.
Source: EBA