Indias SBM Bank announced its partnership with PayNearby as a move to launch the Open Banking solutions designed for small and medium-sized businesses (SMBs).

The private lender has signed a memorandum of understanding to create the Open Banking network and expand its financial services to micro-enterprises. This tie-up between lenders and fintech firms is emerging, with more entrepreneurs relying on tech for banking solutions.

At SBM Bank, banking has become an on-demand experience for new-age customers. Branch locations, banking hours or normal waiting timethese concepts are fast eroding, said SBM Bank CEO Sidharth Rath.

Rath also claims that the collaboration of open banking can support the economic growth of India, as more businesses get access to the funding they need.

Traditional Banks Tie Up With Fintech Firms

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Enhanced Lending Capabilities

In addition to SBM Bank, several other banks like The Huntington National Bank has announced a partnership with fintech company, Automated Financial Systems (AFS). The integration comes to light as part of management enhancement for borrower profiles, loan pricing, and other lending processes.

Fintech firms have the technology that traditional banks needed to make lending processes fast and seamless. In Australia, Judo Bank also ties-up with lending SaaS of InfraRisk to handle SMB lending in the country. InfraRIsk allows the use of its credit management platform, Credit Value Maximiser (CVX) to Judo Bank, as part of the partnership.

Aside from lending processes, the collaboration between banks and fintech companies can improve the payment security of customers using different platforms. Thus, the connection between the customers and the bank is enhanced, making way for more people to create a bank account and utilize banking tools.

PayNearby will offer account opening, banking transactions, final product sales, and payment transactions with the help of SBM Bank.

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A Filipino-Chinese, Maricar Sze is highly educated and well travelled. With a Bachelor of Science in Computer Studies majoring in Information Technology. She is a business owner providing services to small to medium businesses in Australia. In earlier years, Maricar worked for American companies Verizon and MCI in Technical Support activities. Over some 8+ years in the SEO industry, Maricar is also a Google Certified Ads Specialist. With skills and expertise, she is responsible for shaping and implementing website optimisation, content marketing, PPC and quality measures for digital campaigns. Other interests include travelling, watching Netflix, and frequently volunteers at children hospitals or shelters.