Open banking creates the need and opportunity for new business models. On the surface, the solutions are simple, but the value created is expressed both in time and money.  This is exactly what led to Ajujaht participant Uve Poom`s newest undertaking Kiir.io.

Kiir.io is developing a platform that will bring together accounting programmes`, online shops`, creditors` and other financial technology solutions` application programming interfaces (APIs) to automate data exchange between different systems.

“Currently, tailormade one-to-one integrations have to be built between business software and banks. For example, if SEB would like to run a real-time credit analysis on a client, then they would have to create one-to-one integrations with different business software. However, we are working on a solution whereby the bank can retrieve all data from one place,“ says team leader Uve Poom about the product under development.

The simplest example is when a company applies for a bank loan, then the head of the company has to ask for documents and data from the accountant, which he or she then sends to the bank. The bank enters the data in their risk model and receives a credit score. “Actually, data could move from one programme to another automatically and even in real-time,“ says Uve and adds that this is only one of the potential problems which Kiir.io is trying to solve under his leadership. The benefit for banks may be even greater. For example, banks can use the solution for provision of loan products, especially smaller credit solutions like invoice factoring.

If APIs help automate data exchange, reduce errors related to data input and bring data exchange to real-time, then a platform converging interfaces helps save time and money spent on building one-to-one integrations.

Companies like Inforegister cannot replace this service. “They cover part of the data, as they work with public data sources,“ explains Uve. “Our solution enables inquiring data in real-time directly from the heart of the company i.e. business software.“ In addition, companies` financial data becomes available in public databases at a certain delay. Kiir.io makes the system faster.

Uve says that right now, the banking world is opening up to certain degree. “When internet bank was introduced, which completely overhauled how people communicated with the bank and used its services, then now we see the second wave of innovation taking place. Banks have to open their information systems more and more. This has led to a fintech–boom, which means many banking services are moving to separate apps,“ said Uve and adds that open banking makes it possible to establish completely new business models. Kiir.io is just one example of many.

SEB Head of Innovation Siim Lepisk says Kiir.io is an example of a solution that clients will definitely appreciate. “From September 2019, banks will have to be ready for open banking. SEB is open to cooperation with financial software developers in order to offer clients more convenient, simpler and customer-friendlier solutions,” says Siim.

“For example, in Sweden, SEB has invested in the fintech company Capcito, which allows entrepreneurs to finance their sales invoices faster and more conveniently. In cooperation with Mastercard, we have launched a programme called Lighthouse in Estonia, which enables fintechs to find investors and points of cooperation with the bank. If Kiir.io shows quick progress in Ajujaht, then this may also lead to a good partnership opportunity to make customer service even smoother.“

As to data protection and related risks, Uve says that their solution focuses primarily on data that companies are exchanging already and it will not get any more delicate due to automation of data exchange. Still, Uve believes security is an important keyword. “For example, we have to look at how long and for what purpose we retain data in our system.

Currently, the team has a technological vision, but in order to not waste efforts, negotiations are taking place with companies whose needs the solutions could be developed for.

Ajujaht is Estonia’s largest business idea competition. Ajujaht was established by Enterprise Estonia, partner SEB and main sponsor Elisa. In addition to the aforementioned, Ajujaht is supported by Law Office Triniti, Estonian Employers` Confederation, Estonian Chamber of Agriculture, Harku Municipality, City of Pärnu, Saue Municipality, City of  Tallinn, City of Tartu. Ajujaht is funded by Enterprise Estonia`s European Regional Development Fund finances. Ajujaht is implemented by Civitta Eesti AS, Kommunikatsioonibüroo JLP and Tehnopol.