How are Open banking APIs “uberizing” the way companies access financial data?
When we think about corporate treasury, we often think about complex cash flow models, liquidity planning, and detailed risk management. But at the heart of all these tasks is one simple need—access to accurate and timely data. Historically, achieving this has been cumbersome and expensive. Legacy systems like host-to-host (H2H) and SWIFT connectivity have served their purpose, but the world has evolved. Now, it’s time to ask, are we ready to adopt the next generation of bank connectivity? We believe Open Banking is that future.
Let me start with a simple analogy: Open Banking is to corporate treasury what Uber is to transportation. Just like how Uber transformed our access to rides, Open Banking APIs are “uberizing” the way companies access financial data. Why? Because they offer real-time connectivity, cost-effectiveness, and scalability. You no longer need massive IT investments or custom integrations to access your bank data. With Open Banking APIs, you can consolidate accounts, currencies, and banks in real time—all through one platform, like FinqTreasury.
Just like how Uber introduced the ride sharing concept, open banking aggregators such as Finqware created platforms like FinqTreasury through which once a bank connector is developed, its access can be shared among virtually an unlimited number of beneficiaries. Each beneficiary will connect their bank accounts and access their own data on demand, whenever they need it.
Understanding the Corporate Landscape
There are generally two types of treasury functions across companies, as my team at Finqware has identified:
- Strategic Treasury Functions (Profile 1): These are your more mature treasury teams that focus on sophisticated tasks like FX hedging, investment financing, and risk management. Often, they already have a TMS and some form of H2H or SWIFT connectivity.
- Operational Treasury Functions (Profile 2): These are the companies where the treasury team is focused on day-to-day cash management, consolidating bank accounts, and dealing with bank reconciliations. They often work with Excel spreadsheets, manually importing bank data. Here, automation is not just a luxury—it’s a necessity.
The burning question is: are Open Banking APIs right for both these profiles? My answer is a resounding yes.
For Profile 2, Open Banking APIs provide the most accessible and affordable form of automation. These companies, which may lack a TMS, can now connect directly to their banks, eliminating hours of manual work and costly errors. Take, for example, the SMEs across the EU, where financial inclusion is being driven by PSD2 and PSD3. They are rapidly adopting APIs to simplify their treasury operations and focus more on strategic growth, not just daily firefighting.
For Profile 1, the adoption might take a bit more time. But even here, things are changing. Crises like the one we experienced a few years ago have forced even the most sophisticated treasurers to rethink how they handle cash forecasting. Real-time data, which only APIs can provide, will soon become non-negotiable. Additionally, with instant payments becoming more prevalent across Europe, real-time reconciliation will only be possible with APIs.
Addressing the Myths Around Open Banking APIs
However, as with every new technology, there are myths. Let me debunk a few:
- Myth 1: APIs are only for real-time cash management.
No. They are also the best solution for accounting, invoice reconciliation, collections and automating payments.
- Myth 2: Setting up bank API connections is complex.
It’s simpler than ever, by using an aggregation platform. Finqware for instance has over 500 live corporate connections, synchronizing data for around 3,000 corporate bank accounts in the CEE region alone. What used to take months of IT integration now takes days and no IT resources are involved.
- Myth 3: APIs are less secure than traditional systems like H2H.
In fact, PSD2 APIs are the most secure bank connectivity option, being built on the most secure standard of customer authentication for authorising access to data, no files or folders being used in such infrastructure.
- Myth 4: Regulatory APIs are built for retail banking, while only premium APIs work for corporates
Actually, very few banks currently provide premium APIs in Europe, while regulatory PSD2 APIs are mandatory for each and every bank. They need to provide the same level of functionality as internet banking, for any type of digital banking customer, be it consumer or corporate.
- Myth 5: There are few organisations that can build a business case for adopting bank API
While direct integration of a premium API can be a more costly, one off project, regulatory APIs are very easily accessible through PSD2 aggregation platforms, with very affordable costs on the aggregator side and no fees on the bank side. Moreover, there are platforms such as FinqTreasury by Finqware combining in one platform both regulatory APIs as well as premium integrations as a service.
Why Open Banking is the Future
Finqware’s platform, FinqTreasury, has grown exponentially in the last year. In 2024 alone, we’ve seen a massive increase in API-powered corporate payments—from €0.36 million in January to over €16 million by July. This isn’t just a trend; it’s a movement.
And it’s not just small businesses that are benefiting. Large enterprises are also realizing the potential of Open Banking for streamlining treasury operations, from insurers like Generali Romania to regional groups. In countries like Romania, Bulgaria, Croatia, Hungary, Czechia, Slovakia, Poland, Austria, Cyprus more than 600 companies are now using live bank connections through APIs to manage cash across borders, currencies, and banks—all from one platform.
Conclusion: Why You Should Care
So why should you, as corporate treasurers, care about Open Banking? Because the future of treasury is in connectivity. The more connected you are to your banks, your data, and your partners, the more agile and efficient your treasury operations will become.
Open Banking isn’t just a buzzword. It’s a powerful tool that can provide real, measurable benefits, and Finqware is here to help you unlock that potential. Together, we can build a future where corporate treasuries are not bogged down by legacy systems, but empowered by real-time data, automation, and flexibility.
About Finqware
Finqware is a Romanian fintech company with European operations, specializing in developing innovative solutions for automating financial operations for companies. The FinqTreasury platform, along with the new FinqPayments module, represents a significant advancement in the field of treasury management and corporate payments.
