The broken business banking experience – How APIs can help automate it?
Have you ever faced a situation where you had to juggle between the dashboards of an accounting software and your bank account? Have you ever been putoff by having to manually upload tons of excels sheets for your bulk payouts?
Reconciliation using a number of reports is a cumbersome process that revolves around checking each payment information against bank records. This often leads to a number of complications. For instance, whenever there is a snag in a particular payment, manual reconciliation becomes quite a tiring process. Mostly because there is no clarity on the problem at hand. All that you can see is that the amounts don’t match.
Let’s take an example
You are a SaaS company with over 1000 active users who consume your service in a pay-per-use model. Your organization sends them invoices every month through an accounting software like QuickBooks or Zoho.
1000 Users = 1000 Invoices
1000 Invoices = 1000 Incoming payments
But wait. Do all of them pay on time?
Let’s make it a little more realistic:
1000 Invoices = 650 of whom actually pay you and 350 who never pay on time.
At the end of the day, you are left staring at a Quickbook dashboard that looks like this:
and and a detailed bank statement of this sort:
It often takes a dedicated team to manually reconcile these payments, to ensure that you’ve tracked all the transactions accurately.
Yes, when it comes to businesses, banking is broken.
How APIs can help automate your payment collection and reconciliation
Lissy is your customer and she settles an invoice sent to her by your business. As soon as the amount gets credited to your Open account, the API notifies your system saying –
“Hey, your invoice of Rs 120 has been paid by Lissy” and that is how your system automatically updates the invoice as Paid. There is no more a need to track your payments manually and spending hours in doing so.
At Open, Asia’s first neobank for SMEs, we have developed a suite of seamless REST APIs that helps businesses like you to send payment requests to your clients. When a payment is received, Open will notify you via a webhook URL (a.k.a callback URL) with the details of the payee and the corresponding invoice to which the client has made the payment. As a result, your system will automatically reconcile that particular payment.
Here’s how it works
How APIs can help automate your payouts
Today, your accounting software/web application is very much disconnected from the whole aspect of banking, especially when it comes to payouts. Currently, it isn’t possible for you to do a real-time payout to your vendor or client instantly from your bank account. It has to be done manually via a bank’s net-banking portal.
Let’s take the case of a platform that allows customers to sell their used mobile phones. Once the mobile phone is verified and the deal is closed, the platform needs to pay the customer. Being an offline process, the payment has to be made to the customers’ bank account via IMPS.
Traditionally this is done via manual fund transfer from the banking provider’s portal. A process that is very demanding in terms of time and manual effort. To hasten this, the platform should be tightly integrated with the banking provider. But this is not possible unless the bank exposes API. While most banks have APIs for this, they are made available only to very few high transacting businesses.
Open provides REST APIs that enable you to perform payouts programmatically from your system.
Every business is unique and so are their banking requirements. It isn’t possible for a single standalone platform to cater to all the banking requirements of a business. However, with business banking APIs, a huge overhead of these manual operations can be fully automated, saving them a lot of time and effort.
We at Open developed a beautiful set of REST APIs to seamlessly control banking according to the needs of a business.