Hi! My name is Jerry and I’m a financial professional.
As customer demands for new, integrated financial services continue to grow, financial executives are beginning to see the benefits open banking can have for their institution, beyond just regulatory compliance.
If your institution is looking to benefit from open banking, use these four pillars to determine the direction you should take that will improve operations, maximize revenue, and enhance the customer experience.
Successful API implementations earn new revenue by directly charging for access to APIs. Your rate structure should be tailored to the data and service being provided and the internal billing rate relative to broader third-party use.
Increased Rate of Innovation
Open APIs allow for outside innovation, bringing new perspectives on how to increase revenue. Exposure to external networks can facilitate new designs for components within a broader community and brings fresh ideas to build out functionality across specialties, like communication or data retention architectures.
Internal Key Performance Indicators (KPIs)
Using the data produced by APIs, you can easily make and measure additional improvements to the environment and processes. Containers have become the underlying deployment platform for an API platform, allowing services to be automatically deployed within specific API environments. As a result, container utilization rates are often also relevant.
Successful open APIs have network effects, such as growth in the number and reach of influencers. To have the widest audience, even your well-defined APIs should minimize customization to be useful across a range of environments. APIs that are built to run anywhere, anytime, and in any cloud or datacenter are the most effective because they can be reused from a single investment.
While your bank may have various strategies to better utilize its technology infrastructure the best approach for your organization should include consideration of where new sources of competition could come from and how to position the organization to adapt accordingly.
If you want to learn more about the four pillars of API assessment in open banking, click the link below for more information.