Multibanking is a well-accepted concept in this modern world. With the launch of PSD2, or The Second Payment Services Directive, in 2018, across Europe, several exciting innovations related to customer interaction with this innovative banking service began.
Multibanking is the only solution to open banking, which allows people to access all their bank accounts in a single place, regardless of the bank.
How Does Multibanking Work?
People usually have multiple bank accounts in different banks or even financial institutions. While one bank offers a greater rate of interest, others may be providing better discounts and services. Some have one checking account, while another account for investments, and even a third account for a mortgage. Hence, people like to maintain multiple bank accounts.
Multibanking brings all these accounts together to make it convenient for customers to get a full view of their finances. It gives them a single go-to place to view as well as manage all the financial accounts.
Multibanking can be safely touted as one of the best developments in the finance industry. The first case of use popped up when open banking became a thing. Several finance companies and businesses offering financial help offer multibanking platforms. Monite is one of the most reliable and trusted platforms to carry out all your banking transactions online.
How Does Multibanking Help People?
It is a simple as well as necessary banking principle to see all bank accounts in one single place, which was not even remotely possible. Spreadsheets were introduced to ease out calculations. Users could enter their bank data in spreadsheets manually and keep updating the same. Before the advent of open banking, people having multiple bank accounts in different financial institutions had to log in to their multiple banking applications and check the status.
However, multibanking benefits exceed beyond the fact that it is convenient to have all your bank accounts on a single screen. Ultimately, it helps people see the full view of their financials rather than just a piece of a jigsaw puzzle. As a result, people have a deeper understand and better control over finances.
How Does Multibanking Help Businesses?
Businesses can also leverage multibanking and get close to their customers. However, there are two key benefits to point out – increased engagement and better insights of customers.
Increasing consumer engagement is critical for businesses. When the business app becomes an integral part of the lives of customers to manage their finances, rather than a single account, it is easier to manage. By providing a comprehensive solution, which brings greater value and helps customers have better control – they are drawn to the environment. They need not go elsewhere.
Once customers draw in, it can help companies get much closer to customers by developing deeper insights into the economy. As a result, it opens up ways for multiple solutions such as personalized financial training, smart budgeting, and more, to add more value as they are based on the complete finance picture of customers.
Account aggregation is the latest technology that makes multibanking a new reality for modern banking. It allows users to safely and easily connect to all their bank accounts. Monite offers the most appropriate platform to customers to avail of a multibanking facility.