Hi! My name is Frank and I’m a financial professional.
Open banking is the ability to deliver financial products and services to third parties by exchanging data through application programming interfaces, also known as APIs. As fintech builds new, agile technology platforms that offer open banking, traditional banks are losing market share and revenue.
To close the ever-growing gap between fintech financial services and traditional banks, banks must integrate open banking solutions with existing infrastructure, and executives need to prioritize open banking development as a monetized, legitimate business model that powers current and future products and services. Let’s take a look at how adopting an open banking business strategy can benefit your organization.
What Customers Want
In our digital world, customers demand targeted, meaningful interactions with their providers which means banks need to be more agile and adaptable to tailor their products and services to individual needs. When your organization understands that customers want instantaneous transactions and sound financial insights at their fingertips, you’ll be able to give them what they want more effectively.
The API Channel
Using well-managed APIs as part of an open banking platform can provide your organization with the level of responsiveness its looking for. Since APIs allow banks to open catalogs for integration with third-party vendors and digital intermediaries, having well-managed APIs at your organization will make it easier for you to collaborate with companies instead of just competing against them. Using open APIs that are part of a consistent platform also allow you to be able to continuously innovate, making your business more successful.
Beyond Legacy Practices and Infrastructure
Forward momentum for participation in open, digital ecosystems requires three core elements: Technology Shift, Talent Shift, and Process Shift. Once you’ve switched your focus past legacy practices and infrastructure, you’ll be able to meet the needs and desires of your audience much more easily.
Banks today are being hindered by decades of legacy infrastructure and are struggling with convoluted network stacks that only support an outdated business model. Once traditional banks adopt a new technical perspective and embrace open source though, they’ll be able to foster effective communication between technical and non-technical teams.
If you want to learn more about open banking as a business strategy, click the link below for more information.