Russia Ushers In Open Banking With A B2B Focus

Open banking may have kicked off with a focus on consumer financial services, but as Russia moves to become the latest market to embrace the framework, the country is targeting open banking’s application toward small- to medium-sized businesses (SMBs).

This week’s look at the latest in open banking and bank-FinTech collaborations explores the latest efforts to unlock financial data for the business client.

Russia Ushers In Open Banking

Russia is welcoming the open banking framework into its market, and an SMB FinTech collaboration is the first to embrace the model, Finextra reported. An announcement stated Russia’s Promsvyazbank is collaborating with Tochka, which provides financial services to SMBs. Together, the firms are using the Bank of Russia’s open banking application programming interface (API), created in conjunction with the Russian FinTech Association (RFA) to drive open banking in the country. The companies have been certified by the RFA to use the API in compliance with regulatory standards, which allow banks and third-party FinTechs to unlock and share data without proprietary agreements.

SMB financial services will become the first open banking use case in Russia, with the partners collaborating on exchanging data from SMB accounts between banks and FinTechs, the report stated. The solution is designed to streamline and digitize SMB loan underwriting, reports said.

“Open API is a global trend,” said RFA CEO Tatiana Zharkova, according to the report. “The Certification Stand and the Open API Portal were developed by the RFA together with market players and the regulator. They are fundamental components of open banking in Russia.”

Investors Boost Codat’s SMB Data-Sharing Tech

With open banking and bank-FinTech collaboration efforts increasingly turning toward unlocking SMB data, investors are paying attention to the technology innovators facilitating that capability. PYMNTS reported the latest to secure funding is Codat, which raised $40 million for its solution that enables SMBs to share their financial data, a critical function as more SMBs adopt digital financial management platforms, according to John Curtius, partner at Tiger Global, which led the round.

The Series B funding also saw participation from existing backers Index Ventures and PayPal Ventures, according to reports, which added that Codat’s API is already in use by a variety of financial institutions (FIs) and FinTechs, including Virgin Money and Brex.

“Financial services for SMBs are now changing more and more quickly, and we’re privileged to work with the people and companies who are driving this change to make life better for small businesses,” said Codat CEO Peter Lord.

KLARA, Credit Suisse Drive Open Banking For Corporates

Credit Suisse has struck a collaboration with KLARA, and the two will focus on wielding open banking for private customers, PYMNTS reported. Business clients of Credit Suisse will be able to opt in to connect their accounts to KLARA to streamline payments for joint users.

“By offering open banking services, we are creating an integrated, personalized client experience,” explained Anke Bridge Haux, head of Digital Banking at Credit Suisse AG. “In partnership with KLARA, we are now providing our private clients with payment functions via interface technology.”

Kantox, Silicon Valley Bank Enhance FX Risk Mitigation

Currency management FinTech Kantox is teaming up with Silicon Valley Bank (SVB) to extend its foreign exchange (FX) risk management solutions to the bank’s corporate customers, PYMNTS reported. SVB will implement Kantox Dynamic Hedging, an FX hedging automation solution, to enhance FX risk visibility and mitigation capabilities for businesses in real time.

SVB Head of FX Advisory Paul Jennings said the FI’s business customers are “always looking for improved efficiency in managing their FX risk and optimizing execution through automation.”