Open Banking is reshaping the way financial services operate, providing more efficient, secure, and customer-focused processes. At Silvr, we leverage Open Banking to streamline partnerships and create a faster, more transparent loan application process for our customers. This article addresses the most frequently asked questions about how Open Banking works with Silvr and why it benefits our partners and clients.
What is Open Banking?
Open Banking is a regulated system that allows financial data, such as bank transaction details, to be securely shared with third-party providers via Application Programming Interfaces (APIs). It removes the traditional barriers between financial institutions and outside applications, enabling a more dynamic, customer-centric approach to managing banking data. With APIs, approved parties can access this data securely, improving everything from risk assessment to loan approval speed.
How Does Open Banking Work?
Fist of all: Silvr hasn’t - at any moment - access to your credential. When you connect your banking accounts with the regulator approved third party solution that Silvr uses, you allow us to see key financial data in a secure, controlled manner. The process is simple, begins with your approval, and can be withdrawn at any time. APIs act as a secured access point to exchange your financial data, but only with your consent and only through a third party that the regulator certified.
Once access is approved, Silvr can retrieve your data to help evaluate your loan request and make quicker, more informed decisions. It’s an efficient process that eliminates manual uploads and ensures that your data is handled securely.
Does Silvr Have Access to My Entire Bank Account?
No – Silvr only accesses the specific information needed for loan assessments, such as bank transaction history and current account balance. These permissions are defined by your bank and regulated under the Payment Services Directive (PSD2). With Read-only access we cannot withdraw money, open new accounts, or execute any transactions on your behalf: we can only observe what we have to observe. The same principle applies to widely used services like Klarna or accounting tools that link to your bank.
Ensuring the security of your data is a top priority for Silvr. We consistently design our systems to protect your data, ensuring that all data transmission and storage occur exclusively in encrypted form. Silvr has earned ISO/IEC 27001 certification, underscoring our dedication to the highest information security and data protection standards.
Learn more about how Silvr protects your data here.
Why Open Banking is Essential for Silvr's Financing Solutions
You want a perfectly crafted financing offer from Silvr within a few hours instead of a few days? Then Open banking is the go-to.
Open Banking has become an integral part of Silvr’s ability to provide faster, more efficient, and data-driven loan decisions. By securely accessing real-time financial data through APIs, we simplify the loan application process, reduce delays, and improve the overall customer experience. With its clear benefits, Open Banking stands as a key tool in offering better, faster financial solutions to our partners and clients.
How Does Open Banking Impact Loan Offers?
Open Banking has a significant positive impact on the speed and accuracy of loan offers. With access to real-time financial data, Silvr can provide much faster feedback on your application, which is particularly valuable for urgent financing needs. For loan requests up to €50,000, no additional documents are needed – Open Banking provides all the information we require.
This direct connection also eliminates the need for customers to export or upload files, ensuring that data is not only more current but also more precise. This results in better decision-making, allowing Silvr to offer tailored solutions with minimal delays.
How Long Does the Open Banking Connection Last?
Following PSD2 regulations, the connection between Silvr and your bank account lasts for a maximum of six months. After this period, the connection expires, and you would need to reauthorize access if further data is needed or if you would like to reapply for Silvr financing. This time limit ensures that your financial information is only available as long as necessary, further reinforcing security and control over your data. You can also withdraw your consent at any time, with no reason.
Why Use Open Banking Instead of Uploading Bank Statements?
Open Banking offers clear performance advantages, especially when speed is crucial. By connecting your business bank accounts via Open Banking, Silvr can retrieve all the necessary financial data within an hour. For smaller customers, this results in loan offers 2-3 days faster than if bank statements were uploaded manually. Larger customers, with more complex financial histories, may receive a loan offer up to five days faster than usual.
This method not only saves time for you but also ensures the data’s accuracy, reducing errors and the need for back-and-forth document exchanges.
Advantages of Open Banking Over Traditional Processes:
Faster approval times: Open Banking via API connections reduce delays in data gathering. You can now receive loan offers up to 2 working days faster.
Increased accuracy: Real-time data retrieval ensures up-to-date and precise information.
Reduced paperwork: No need to manually download then upload bank statements, which simplifies the process.
In summary, Open Banking enables Silvr to provide faster, secure, and more efficient financing. With secure API connections, we streamline the loan process, reduce approval times, and ensure data accuracy—offering our clients a smooth, hassle-free experience.
