min read

How Open Banking Empowers Crowdfunding Companies

Published on
May 24, 2023
Updated on
May 24, 2023
Razza Ahmed
Marketing Lead
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Open banking has emerged as a game-changer in various industries, and the digital crowdfunding sector is no exception. By leveraging open banking services, crowdfunding companies can gain access to valuable customer and investor data. In this blog post, we will explore how open banking enables crowdfunding companies to streamline operations, enhance security, check the SMEs’ bank statements digitally, and make informed decisions.

Streamlining Bank Account Verification Procedures

  • One of the significant advantages of open banking for crowdfunding platforms is the ability to automate bank account verification procedures for individual investors. Traditionally, manual procedures have been time-consuming and prone to errors. However, by utilizing open banking APIs, crowdfunding companies can seamlessly verify bank accounts and eliminate the hassle associated with this process. This automation not only saves time but also reduces the risk of fraudulent activities or impersonation.

Access to Comprehensive Financial Statements

  • Open banking provides crowdfunding companies with unprecedented access to a wealth of financial data. Whether it's an SME seeking investments or financing, open banking allows access to a wide range of financial statements registered with the bank. Some of the key financial information that can be accessed includes:
  • Complete banking operations for the last two years: Crowdfunding platforms can gain insights into the financial transactions and activities of individual investors over the past two years. This information is invaluable in assessing the financial credibility and stability of potential investors. And can help with upgrading the investor status, by validating the balances and the total cash transactions.
  • Registered identity information on the bank account: Open banking enables crowdfunding platforms to verify the identity of investors by accessing their registered identity information from the bank. This verification process adds an additional layer of security and helps mitigate the risk of fraudulent accounts.

Enhanced Security Measures

  • Open banking services incorporate robust security protocols and measures to protect sensitive financial data. Crowdfunding companies can leverage these security features to ensure the privacy and integrity of customer and investor information. Additionally, the ability to verify the identity of investors through open banking adds an extra layer of security, reducing the risk of fraudulent activities and unauthorised access.


Open banking has revolutionised the digital debt and equity crowdfunding sector, offering a range of benefits to crowdfunding companies. From streamlining bank account verification procedures to accessing comprehensive financial statements, open banking empowers crowdfunding platforms to enhance efficiency, improve security, and make well-informed decisions. By embracing the opportunities presented by open banking, crowdfunding leaders can unlock new possibilities for growth and success in the dynamic landscape of alternative financing.

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