Microsoft strikes Banking-as-a-Service deal with Finastra

By using open banking technology,  SMEs using Microsoft Dynamics 365 cloud-based enterprise software platform will be able to access and unlock financing offers without leaving their business management platform.

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Open banking platform Finastra has expanded its partnership with Microsoft with a new Banking-as-a-Service (Baas) agreement.

Finastra and Microsoft teamed up together in 2018 in a deal that saw Microsoft’s cloud platform, Microsoft Azure, underpin Finastra's cloud platform. Microsoft has struck several banking technology agreements of late.

Finastra says its new tie-up with Microsoft will bring new lending options to thousands of SMEs.

By using open banking technology, SMEs using Microsoft Dynamics 365, its cloud-based enterprise software platform, will be able to access and unlock financing offers without leaving the business management platform.  

For example, Finastra’s technology will use the information on the SME, with its consent, stored within Microsoft Dynamics 365, to make it easier for them to apply for lending.

With speedy access to accounts receivable and payable records lenders, meanwhile, can make a quicker decision.

Finastra’s says it has access to a network of over 5,000 financial institutions in the US that will allow SMEs to access the most relevant and valuable financing options for their specific business needs.

The move marks the latest move by Microsoft into modern banking technology.

It has previously struck deals with Codat, the financial API provider, now defunct Natwest-owned lending platform Esme Loans as well as Plaid.

Angus Ross, chief revenue offficer, Banking as a Service, at Finastra, said: “This lending proposition for Microsoft Dynamics 365 reinforces Finastra’s leadership in open and embedded finance. It demonstrates the huge benefit that embedded and contextual finance will bring to the industry and the communities within it.

"We look forward to continuing our long-standing collaboration with Microsoft and working closely on this and future impactful projects.” Bill Borden, corporate vice president of worldwide financial services at Microsoft, said: 'By embedding secure access to key financial services in the context of Microsoft Dynamics 365, our SME customers will have a faster path to the financing options and critical capital they need to thrive.”

The partnership will go live iin the summer, with a focus on North America customers first up.

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