We expect to see dramatic growth in corporate credit products as new specialist lenders using Open Banking, take hold in the market.
Germany has fully embraced PSD2 and created a common standard for open Application Programming Interfaces (APIs) through the Berlin Group. The country is also second only to the UK in terms of the number of permissioned intermediaries able to deliver payments services under PSD2.
Yet historically, small and medium enterprises (SMEs) have struggled to gain access to credit and flexible banking services. However, new specialist lenders are taking hold in the market by using Open Banking to prove the creditworthiness of smaller companies.
FinTech to the fore:
Thus, Germany’s relatively advanced status in PSD2 readiness is creating opportunities for partnership between banks and FinTechs via service delivery through shared APIs. Banks are now working with FinTechs such as Moss, a platform that integrates all corporate spending on one card, and Pliant, a business-to-business payments platform, to enable new payment services.