Banks looking to navigate the complexities of open banking just got a lifeline. Backbase, a leading engagement banking platform provider, has joined forces with Salt Edge, an Ontario-based open banking solutions provider, to help financial institutions streamline compliance while reducing costs and unlocking new revenue opportunities.
A Seamless Compliance Solution for Banks
For many banks, integrating secure authentication flows between third-party providers (TPPs) and their platforms is a headache. Development and maintenance costs run high, and regulatory requirements add another layer of complexity. The Backbase-Salt Edge partnership aims to change that.
By offering Salt Edge’s compliance solutions through the Backbase Marketplace, banks can tap into a ready-made framework that seamlessly integrates with their existing digital platforms. This means:
- A reduction in IT infrastructure costs for compliance.
- A pre-built authentication flow that ensures security.
- Access to self-service tools for TPPs, including dashboards and developer portals.
Beyond Compliance: Monetizing Open Banking
Regulatory compliance is just the tip of the iceberg. Banks are also eyeing new revenue streams, and this collaboration provides an avenue for financial institutions to monetize their APIs while enhancing digital services.
Roland Booijen, General Manager Ecosystems at Backbase, highlighted the broader impact: “This partnership allows banks to comply with open banking regulations while also exploring opportunities to monetize their APIs and enhance digital services.”
With Salt Edge’s end-to-end compliance framework, banks can not only meet regulatory mandates but also position themselves to capitalize on the expanding open banking ecosystem.
Lowering Costs, Enhancing Efficiency
The financial sector has been grappling with the growing costs of regulatory compliance. Many banks have had to invest heavily in developing secure API infrastructure, leading to ballooning IT expenses. The Backbase-Salt Edge collaboration presents an efficient alternative by:
- Providing a plug-and-play compliance framework.
- Reducing the need for in-house development teams to build API authentication flows.
- Offering direct integration with Salt Edge’s open banking services.
This approach eliminates redundant work, allowing banks to focus on delivering better customer experiences instead of struggling with backend compliance issues.
Open Banking Gains Momentum
As regulators push for greater transparency and interoperability in banking, partnerships like this signal a broader shift in the industry. Open banking isn’t just about meeting legal obligations—it’s about embracing a digital-first approach that benefits both banks and customers.
With Backbase and Salt Edge leading the charge, financial institutions now have a cost-effective, efficient way to stay compliant while preparing for the next wave of digital banking innovation.
