Modern enterprises expect banking infrastructure to operate with the same speed, reliability, and automation as their core business systems. As digital operations scale across functions like procurement, payroll, treasury, and shared services, organisations increasingly need banking rails that integrate seamlessly with ERPs, workflow engines, and internal platforms.
This is where API-led systems like SBI Connected Banking are witnessing strong adoption. While traditional SBI NetBanking remains dependable, it was fundamentally built for human-driven interactions—not automated, system-led finance operations.
This guide compares SBI NetBanking vs Connected Banking, covering SBI connected banking features, workflows, benefits, and suitability for mid-market and large organisations.
What Is SBI Connected Banking?
SBI Connected Banking is an API-enabled model that links your enterprise’s SBI current account directly with internal systems such as:
- ERP
- Treasury management software
- Procurement and vendor systems
- HRMS and payroll solutions
- In-house financial platforms
Key features
- Works through secure, bank-approved APIs.
- Enables real-time balance and transaction access.
- Supports automated payments and reconciliations
- Minimises manual involvement across teams.
- Reduces dependency on banking portals.
Connected Banking essentially shifts banking operations from human-driven processes to system-driven workflows, improving scale, accuracy, and speed.
What Is Traditional SBI NetBanking?
Traditional NetBanking provides enterprises with portal-based access for day-to-day operations such as payments, balance checks, approvals, and statement downloads.
Core characteristics
- Requires manual user login for all tasks.
- Maker-checker approval flow happens inside the banking portal
- Bulk payments need file or Excel uploads.
- No native ERP or system-level integration.
- Limited automation capabilities.
NetBanking works well for smaller teams or businesses with low transaction volumes. For scaling enterprises, manual dependency becomes a bottleneck.
SBI Connected Banking vs Traditional NetBanking: A Clear Comparison
| Feature/ workflow | SBI connected banking | Traditional SBI netbanking |
| Access method | API connections via enterprise systems | Login via web portal |
| Data flow | Real-time | Manual refresh |
| Payments | Automated via ERP/system triggers | Manually initiated |
| Bulk transfers | Single-click automation | File upload required |
| Reconciliation | Instant, automatic | Manual spreadsheet work |
| Security | API-based, tokenized access | Credential based |
| Suited for | High-volume, automated enterprise operations | Low-volume, manual workflows |
Why Are Enterprises Moving Toward Connected Banking?
1. The need for real-time, integrated financial systems
Large organisations increasingly operate on interconnected digital workflows—procurement, payroll, treasury, invoicing, and vendor management. Connected Banking aligns naturally with enterprise architectures designed around continuous data flow.
2. Manual banking slows down enterprise-scale operations
When teams handle complex workflows, multiple accounts, or high transaction volumes, frequent logins, checks, and reconciliations create operational drag.
Connected Banking consolidates these actions into hands-free, automated processes executed through existing enterprise systems.
3. ERP and digital finance adoption are mainstream
Most enterprises already run SAP, Oracle, Zoho, Tally, or in-house systems for operations. Connected Banking allows the bank to plug directly into these systems, creating a unified financial layer and reducing dependency on fragmented tools.
SBI Connected Banking Features
1. Real-Time Balance Fetching
APIs allow your internal systems to fetch balances instantly without any manual intervention.
Why this matters for enterprises:
- Treasury teams get continuous visibility across multiple accounts and branches.
- Cash-flow monitoring improves because balance data flows directly into dashboards or ERPs.
- It prevents low-balance or overdraft situations by enabling proactive alerts and automated triggers.
2. Automated Vendor & Salary Payments
Connected Banking supports system-triggered payments using API-driven instructions.
- Bulk payouts for procurement, marketing, logistics, and partner networks become entirely automated.
- Scheduled or rule-based payments reduce delays and ensure compliance with internal SLAs.
- Any workflow event (invoice approval, HRMS approval, procurement clearance) can trigger a payout automatically.
3. Real-Time Transaction Data Sync
Connected Banking eliminates the need for statement downloads, imports, and manual matching.
- Reconciliations happen in real-time as transactions sync directly with ERPs.
- Reduces mismatches caused by file-based imports or manual updates.
- Month-end closure cycles become faster because finance teams work with up-to-date ledger entries, not batch-updated data.
4. Maker-Checker Approvals Inside Your Enterprise System
Approvals no longer need to be executed within SBI’s portal.
Instead, your ERP or workflow engine manages the entire maker-checker chain.
- Approval structures can be customised based on business units, locations, roles, or transaction size.
- Ensures consistent compliance across all departments.
- Reduces toggling between systems and improves governance by keeping audit trails in a single place.
5. Enhanced Security with API Tokenisation
Connected Banking uses token-based authentication and secure API channels.
- Eliminates reliance on shared passwords or portal credentials.
- Restricts access only to systems with approved tokens, improving control.
- Reduces fraud exposure by removing human intervention in repetitive tasks.
- API logs provide granular audit visibility across all automated actions.
Traditional NetBanking: Limitations You Should Know
1. High Manual Dependency
Every action—balance check, payment approval, statement download requires human interaction, which slows large-scale operations.
2. File-Based Bulk Payments
Enterprises depend on CSV or Excel uploads, leading to:
- Higher turnaround time
- Rework due to format issues
- Restricted automation opportunities
3. Fragmented Approval Workflows
Approvals remain within the bank portal and cannot fully integrate with your ERP or internal systems, causing delays and governance challenges.
4. No Real-Time Sync
Data flows in batches, creating gaps during reconciliation and impacting decision-making.
SBI NetBanking vs Connected Banking: Which Is Better?
Choose SBI Connected Banking if your organisation:
- Handles high-volume payouts and collections
- Automates reconciliation and finance operations
- Uses ERPs or multi-system workflows
- Requires multi-level, multi-branch approval chains
- Needs consolidated cash visibility for treasury
Choose Traditional NetBanking if your organisation:
- Runs low-volume payments
- Has a small finance team
- Does not require system-level integrations
- Prefers manual oversight for every transaction
Enterprise Use Cases for SBI Connected Banking
1. Automated vendor payouts
Enterprises can automate recurring payouts tied to procurement cycles, reducing delays and improving vendor relationships.
2. E-Commerce settlement reconciliation
Companies operating across marketplaces can sync settlement entries directly with their systems, cutting down reconciliation time.
3. Real-time treasury management
CFOs and treasury teams get a unified, real-time view of liquidity across multiple business units and locations.
4. Automated employee reimbursements
HRMS-approved claims can directly trigger payouts without manual intervention.
5. Multi-branch financial visibility
Large organisations with distributed branches can centralise account information and improve governance.
How SBI Connected Banking Works (Step-by-Step)
1. Authorise platform access
Enterprises provide permission through SBI’s onboarding interface to allow secure integration.
2. Establish API connection
Your platform connects with SBI’s verified API endpoints and completes authentication.
3. Enable automated workflows
Payment initiation, balance fetch, reconciliation, and approval flows are activated in your ERP or finance system.
4. Continuous sync
All transactional activity synchronises in real time, ensuring your finance tool always has accurate, updated data.
Benefits of SBI Connected Banking
1. Reduced manual effort
Finance and operations teams eliminate repetitive portal logins, file uploads, and manual checks. This frees up hours for strategic work such as forecasting, budgeting, and analysis.
2. Better financial accuracy
Real-time, API-fed data reduces mismatches and eliminates manual input errors, improving the accuracy of financial statements and reporting.
3. Faster payouts
Vendor and salary payouts can be automated end-to-end, improving internal SLAs, vendor satisfaction, and operational continuity.
4. Enhanced security
API tokens, encrypted channels, and system-level access control create a stronger security posture than credential-based models.
5. Improved decision-making
CFOs and business heads get live financial visibility, enabling quicker forecasting, cash-flow planning, and liquidity management.
Where OPEN Money Fits Into This Transition
OPEN Money helps enterprises adopt SBI Connected Banking with a defined onboarding and integration process, enabling SBI current accounts to be connected to enterprise financial workflows within a typical implementation window of 3–4 weeks, reducing turnaround time to set up connected banking with an organisation’s ERP or financial systems, subject to system readiness and internal approvals.
Designed for scale and governance, OPEN Money supports:
- Unified dashboards for salary payouts, vendor payments, and reimbursements.
- Vendor onboarding and verification available as optional add-ons for managing payees at scale.
- API-driven payment initiation, reconciliation, and real-time status tracking within enterprise systems.
- Ledger-ready transaction records to support accounting, GST, and audit requirements.
- Configurable approval workflows and role-based access, including maker–checker, finance, and admin roles.
- Multi-entity and multi–cost-centre support for enterprises operating across business units or subsidiaries.
If you’re ready to move beyond manual NetBanking and transition to system-driven banking operations, explore SBI Connected Banking on OPEN Money.
FAQs
1. What is the main difference between SBI Connected Banking and NetBanking?
Connected Banking uses APIs to automate workflows. NetBanking requires manual logins and actions.
2. Is SBI Connected Banking safe for SMEs?
Yes. It uses secure APIs, tokenised authentication, and encrypted channels.
3. Can SBI Connected Banking automate vendor payments?
Absolutely—bulk and recurring payments can be fully automated.
4. Does Connected Banking support real-time reconciliation?
Yes. Transaction data syncs instantly to your ERP or finance tool.
5. Is SBI Connected Banking better for high-volume businesses?
Yes, it’s ideal for large payout volumes and multi-branch operations.
6. Can traditional SBI NetBanking handle bulk transfers?
Yes, but through manual file uploads, which lead to more effort and errors.
