Open Banking for Non-Banking Financial Institutions
In recent years, financial products and services have become increasingly accessible, convenient, and customer-oriented. To keep pace with evolving times and growing competition, non-banking financial institutions (NBFIs) require easy-to-implement, customer-centric solutions that reduce costs, simplify processes, and improve decision-making. This is why they are increasingly turning to Open Banking (OB) solutions from IRIS Solutions.
Below, we delve into how Open Banking enhances products and services for NBFIs in Bulgaria and the region and how you can leverage OB to achieve new business heights.
Challenges Facing Non-Banking Financial Institutions
In their efforts to provide seamless customer experiences and improve credit decision-making through innovative technologies, NBFIs most often encounter three key challenges:
Manual credit disbursement workflows that lead to delays and errors.
High transaction costs associated with traditional payment methods, making integration difficult.
Limited payment options and fragmented financial data, which complicate KYC processes.
The Solution: Open Banking
IRIS Solutions offers comprehensive Open Banking-based solutions with features that improve payment collection, automate workflows, and provide actionable financial insights.
Cost Reduction: Direct account-to-account payments significantly lower transaction fees, increasing the profitability of NBFIs.
Faster Transactions: Real-time processing speeds up credit disbursements and payment collections, improving liquidity and operational efficiency.
Enhanced Risk Management: Access to comprehensive financial data enables better credit risk assessments and informed decision-making.
Improved Customer Experience: Easy and secure payment methods, combined with personalized services, increase customer satisfaction and loyalty.
IRIS Solutions’ Offering
IRISPay as a Payment Method on the NBFI Platform
IRISPay Mobile App and Payment Links for Collections
Automation of the Loan Disbursement Process to Borrowers
Integration of "Multibanking" into Customer Profiles on NBFI Platforms
"Know Your Customer" with Open Banking by IRIS Solutions
1.IRISPay as a Payment Method on NBFI Platforms
1.1. What is IRISPay? IRISPay is an innovative payment method that eliminates the need for card schemes like Visa and Mastercard. Payments are made directly from the customer’s bank account to the merchant's or lender's account, saving over 50% in transaction costs. The process is streamlined, requiring no sensitive data input or software installation.
1.2. Benefits for Customers:
Quick and easy loan repayment.
No need to install additional software or provide bank details.
Payments with just a few clicks or biometric authentication where available.
1.3. Benefits for NBFIs:
Over 50% reduction in transaction fees.
Funds received within 10 seconds (for banks supporting blink).
Improved collection rates through a convenient payment method.
Transparent monthly billing based on successful transactions.
Notifications for every successful payment.
1.4. Implementation Time
Integration documentation is provided for seamless implementation.
1.5. Demo
Watch a brief demonstration of the payment process on the DMS platform at this YouTube link:
2.IRISPay Mobile App and Payment Links for Collections
2.1. What are the IRISPay App and Payment Links? The IRISPay mobile app and payment links are modern, cost-effective alternatives to expensive POS terminals. They enable easy and quick payments, significantly reducing transaction costs.
The mobile app generates payment QR codes with just a few clicks. Customers scan the code and initiate payments directly from their bank account to the NBFI’s account, saving over 50% on transaction fees. Payment links allow customers to make payments through their preferred channels, such as SMS, Viber, WhatsApp, or email.
2.2. Benefits for Customers:
Convenient payments without software installation or bank details.
Fast process – payments completed in four clicks or with biometric authentication.
2.3. Benefits for NBFIs:
Reduced costs – over 50% lower fees compared to traditional card schemes.
Improved collection rates – easy-to-use payment options boost compliance.
Faster fund receipt – payments processed in up to 10 seconds with blink-supported banks.
2.4. Implementation Time
The app and payment link capabilities are ready for immediate deployment, requiring no technical effort from your side.
2.5. How It Works:
IRISPay - Mobile App - QR Code Payment
Payment link on VIber
3.Automating Credit Disbursements
3.1. What is it? By integrating with IRIS Solutions’ PSD2 Hub, NBFIs can automate credit disbursements directly to customers' bank accounts. This allows real-time fund transfers without manual intervention.
3.2. Benefits for NBFIs:
Time-saving: Speeds up the disbursement process and reduces administrative burdens.
Reduced risk of errors: Payments are processed automatically and accurately.
Enhanced accounting processes: Automated transactions improve financial reporting.
High security: Ensures the highest standards of security in payment processing.
4.Multibanking Integration for NBFI Customer Profiles
4.1. What is Multibanking? Multibanking allows customers to manage multiple bank accounts from different banks in a single platform. This functionality provides a complete financial overview, helping clients plan their finances more effectively.
4.2. Benefits for Customers:
Comprehensive financial overview – all accounts in one place.
Easy and quick payments – customers can initiate transfers directly.
4.3. Benefits for NBFIs:
Improved customer retention through enhanced services and convenience.
Opportunities for upsell and cross-sell using comprehensive financial insights.
4.4. How it Works:
5.“Know Your Customer” with Open Banking
5.1. What is it? With customer consent, NBFIs gain access to up to 180 days of account transaction history. This helps assess financial behavior and improves credit risk evaluation.
5.2. Benefits for Customers:
Better loan terms based on additional financial insights.
Faster loan approval as real-time data speeds up the process.
5.3. Benefits for NBFIs:
Improved visibility into customer financial behavior.
Enhanced risk assessment based on real data.
Conclusion
By leveraging Open Banking technologies from IRIS Solutions, NBFIs can improve their services while reducing costs and enhancing efficiency. Successful Open Banking implementation unlocks new opportunities for growth and innovation, positioning NBFIs at the forefront of the financial services industry. IRIS Solutions remains a trusted partner in this journey, committed to delivering modern solutions that drive efficiency, customer satisfaction, and long-term success.
Are you ready to transform your business with the OB innovations?
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