It is common for financial products, such as business credit cards or loan providers, to ask for access to your financial information from banks and financial institutions. But this hasn’t always been a secure, safe, or transparent process.
With recent innovations in financial services technology, the system of open banking has streamlined and safeguarded this data sharing. Allowing third parties such as Cape to securely access and share your information, informing innovation of products and services and aiding underwriting procedures.
What is open banking?
Open banking is a system that securely connects third party service providers, such as financial services, payment platforms, and fintechs, to the banking data of banks and other financial institutions.
The data includes what you're required to share with your financial institution, such as account and identity details and what their systems collect, such as transactions, transfers and balances.
APIs (application programming interfaces) provide these third parties, such as Cape, with access to open banking data allowing them to build products and services that can interact with the financial institutions' systems in a secure manner.
Not only does open banking invite innovation and fair competition between financial institutions and technologies, but it also provides transparency and gives control over this data back to customers.
Why does Cape need to access your data?
Our partnership with open banking platform, Basiq, allows us to access your banking data and perform integral underwriting procedures to determine your credit limit and serviceability. We also use this data in real-time for account monitoring, meaning we can update you immediately once you're eligible for a credit limit increase.
We also use data obtained via Codat’s API integrations to build products, platforms and services that are uniquely tailored to you and your business needs. This allows us to provide you with a seamless experience that speeds up verification processes and facilitates your payments and transfers without the need to enter login information or other details each time.
How do we keep your data safe and secure?
Our partnerships with Codat and Basiq give us access to your financial data and are built on infrastructure with the highest degree of security.
Both Codat and Basiq are ISO 27001 certified and meet SOC2 standards, meaning they store your data in the same way the world’s most highly regulated financial institutions do. (These standards are like the Fort Knox of data security.)
Basiq and Codat also undergo rigorous annual audits from third party regulatory bodies for these standards and have various measures in place to fortify their security, including 2FA (two-factor authentication), firewalls, AES-256 data encryption, TLS secure data tunnels, and real-time monitoring.
What this means for you is the data that we collect and the payments and transfers you make on our platform have never been safer or more secure. It is read-only and completely immutable.
What are your options when sharing data?
When sharing your financial data to access Cape's credit products, you can download and print your bank statements - a time-consuming process that also opens you up to fraud. Or, you can use digital data capture through our Basiq connection, where you can connect your internet banking by granting read-only access.
Through the Codat API integration, a Codat Portal Instance is created for your account and is only accessible to employees if you grant permission. You retain complete control over this account with administrative rights.
Shortly, under the CDR (Consumer Data Right) in Australia, you will be able to define who you share this data with through your banking service or financial institution.
Conclusion
By partnering with Codat and Basiq, we can bring you an open banking experience that is as streamlined as it is secure. It ensures that the products and services we provide are tailored to you and your business while keeping us on top of the latest innovations in financial data security.
Additional Resources:
https://www.codat.io/security/
https://docs.basiq.io/en/articles/5298389-securely-connecting-your-data-with-basiq
