Business Banking On The Docket As Open Banking Progresses

Corporate banking is clearly on the docket for the latest initiatives in open banking and bank-FinTech collaboration. Banks in the U.K. and Europe continue to embrace the framework, but partnerships in the U.S. (and a new fundraise for Plaid) signal continued interest in how the framework can disrupt business banking, even without a regulatory mandate.

Plaid Funding: A Boon For Open Banking Evolution

Last week, FinTech Plaid announced a $425 million Series D funding round, a significant backing for the company and a show of support for the open banking framework in the U.S. market. The company, which allows third parties to access banking data with the permission of the end user, is now valued at $13.4 billion. Reports said Plaid plans to use the capital to focus on the development of an integrated platform to fuel new FinTech offerings.

Sterling Bolsters Rho’s Business Banking-As-A-Service

Sterling National Bank has announced a partnership with Rho Technologies, a collaboration that will result in a Business Banking-as-a-Service offering. Through their tie-up, Sterling will provide its business banking product and regulatory expertise with Rho’s technology platform. The result will be a product allowing third parties to embed corporate banking products within their systems. “We are excited to partner with Rho. Their innovative digital banking platform provides businesses with access to the banking, budgeting and payments products they need to succeed,” said Matthew Smith, Sterling’s head of Direct Banking and Banking as a Service.

Starling Taps Funding Options For SMB Loans

In the U.K., marketplace lending platform Funding Options has announced a partnership with Starling Bank to connect more small to medium-sized businesses (SMBs) to working capital. Funding Options is reportedly bringing on Starling Bank as the newest member of its lending panel, which encompasses more than 120 lenders. According to reports, the tie-up is a win-win for both parties: Starling Bank will be able to expand its presence in the SMB lending arena while Funding Options will be able to expand its ability to connect small businesses to lenders.

Oracle Broadens Corporate Banking Tool Set For Financial Institutions

Oracle Financial Services is broadening its tool set offered to bank clients with the launch of new products focused on corporate banking. The company recently announced the launch of three new tools:  Supply Chain Finance, Liquidity Management and Virtual Account Management cloud services, all of which will run on Oracle Cloud Infrastructure. “The pandemic has left corporate banks grappling with significant loan losses and reduced capital investment but an increased expectation to economically accelerate new digital services,” said Oracle Financial Services Executive Vice President and General Manager Sonny Singh in the release.

Denmark Boosts Open Banking Adoption

More than two dozen banks in Denmark will now gain access to open banking services, part of a new arrangement for financial institutions to collaborate with Nordic API Gateway via bank-owned IT supplier, BEC. Reports in Computer Weekly this week said that 27 banks in Denmark will loop into open banking, affecting more than 2 million customers. Customers can now give permission to their banks to unlock their financial data for third-party platforms.