Revolutionizing Business Payments: The Connected Banking Advantage for Seamless Financial Management

In the annals of Indian business history, the Agarwal family stands as a testament to the endurance and evolution of enterprises across generations. A closer examination of their journey unveils the game-changing impact of connected banking on their cash flow practices, setting a benchmark for streamlined business payments.

A Glimpse into the Past: From Cash to Connectivity

Travel back to the 1980s, when the first-generation Agarwal, Mr. Agarwal, navigated the business landscape through cash transactions. Vendors were paid and payments were collected in physical currency, necessitating significant efforts in security, transportation, and record-keeping. This approach, while traditional, came with substantial operational costs.

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As the reins of the business were handed over to the second generation, the method evolved with the introduction of cheques. The process remained manual but offered a glimpse of modernization. However, it was the advent of the third generation that saw a seismic shift towards online transactions. Despite the convenience, challenges such as multiple OTPs and intricate manual bookkeeping persisted.

Identifying the Crux of Complexity: Unlinked Current Accounts

The Agarwals pinpointed the root cause of their persistent challenges—the lack of synchronization between their current accounts and accounting tools. This realization spurred them to embrace a solution that would revolutionize their financial operations: Connected Banking.

The Power of Connected Banking: Simplifying Business Payments

Connected Banking is more than a solution—it's a paradigm shift in financial management. By seamlessly integrating current accounts with accounting tools, it has brought unprecedented ease and efficiency to the Agarwals' business payments. Let's delve into how this transformation unfolded.

Streamlined Vendor Payments

The Agarwal family's current accounts across different banks were seamlessly connected through the innovative platform. This integration streamlined bulk payments to vendors and employees, all within a single interface. The hassle of navigating multiple Internet banking portals became a thing of the past. Furthermore, the platform's ingenuity automated payment entries for bills in both the connected banking and accounting systems, reducing redundancy and enhancing accuracy.

Accelerated Receivables through Digital Invoicing

Harnessing the capabilities of the connected banking platform, the Agarwals revolutionized their invoicing process. Invoices were effortlessly sourced from their accounting tool and even generated within the platform itself. Notably, they embedded payment links directly into the invoices before sharing them with clients. This strategic move provided customers with multiple payment options, from NEFT and IMPS to RTGS and UPI. The result? A notable acceleration in online payment collections, facilitated by gentle auto-reminders.

Automated Reconciliation: The New Norm

The integration of their financial ecosystem led to an automated reconciliation process. E-statements from diverse current accounts seamlessly matched with payments, collections, and journal vouchers within their accounting tool. This meticulous synchronization ensured an accurate record of every financial transaction within their current accounts, empowering the Agarwals with unparalleled cash flow management capabilities.

Envisioning the Pinnacle of Connected Banking

Imagine a connected banking platform that brings together multiple current accounts from leading banks such as SBI, ICICI Bank, Yes Bank, and Axis Bank. This platform would empower businesses to:

1. Effortlessly execute bulk payments to vendors and employees2. Expedite payment collections through embedded payment links in invoices, resulting in a 30% boost in collections3. Achieve seamless reconciliation in a matter of minutes4. Facilitate on-the-go filing of GSTR 1

Automatically synchronize entries between the connected banking platform and accounting software, ensuring consistency and accuracy

Elevating Financial Management with OPEN

Enter OPEN—a visionary collaborator in this evolution—partnering with SBI Bank to offer an array of supplementary services within a unified platform. These include:

1. Efficient Oversight of Expenditures: Streamlined monitoring of corporate and staff expenses through the systematic collection and approval of receipts.
2. Seamless Payroll Management: Effortlessly oversee employee reimbursements, leaves, and remuneration, all integrated into the OPEN platform.
3. Simplified E-Invoicing: OPEN facilitates the generation of e-invoices and Invoice Reference Numbers (IRNs), streamlining the invoicing process.
4. Enhanced GST Filing: Automated GST computation for inbound and outbound supplies, with GSTR1 ready for filing. OPEN further aids in retrieving GSTR 2A for validation and submission of GSTR 3B.

OPEN's reputation as a trusted partner extends across 15 of India's top national banks, including esteemed institutions like SBI Bank, ICICI Bank, and Axis Bank. Over 35 lakh+ businesses have embraced OPEN, reaping its myriad benefits.

A New Horizon of Financial Efficiency

The Agarwals' journey encapsulates the transformative power of connected banking in simplifying business payments. It beckons businesses to reimagine financial management and harness the potential of technology to navigate the intricacies of modern payments. As the digital realm reshapes the landscape of financial operations, embracing connected banking is not just an option—it's a strategic imperative for businesses aspiring to thrive in the digital age.

I am Pradeep Maurya. I am a content professional blogger and love to write on business finance.