Banks are on their way to becoming fully digital and in providing a truly immersive and digital experience, however the journey is long and will take time for the traditional banks to transition completely. This pace has been accelerated by the external partners, such as fintechs, technology companies, etc. that are helping banks take the right steps in the direction of their target state.
So, Is Open Banking the basis of a New Digital?
Open banking is the way of sharing financial information electronically, safely, and under the conditions that are approved by the customers. Regardless of the IT environment or size, financial institutions should pursue open banking standards using application programming interfaces (APIs) to provide third parties with proper access to financial information.
APIs enable seamless exchange of information by providing banks and financial institutions a way to talk to each other. APIs provide them an opportunity to grow business at an unprecedented pace by sharing their services with third-party providers. These providers, in turn, equip consumers with in-demand technology, and this digital experience holds the potential to accelerate competition and success for financial institutions.
According to the EY Global FinTech Adoption Index, many customers have already shifted to fintech applications, with nearly 87% looking forward to adopting solutions apart from what has been traditionally available at their financial institution. This growing digital penetration into the banking ecosystem has already extended the boundaries of the customer and bank relationship. This is further anticipated to lead to a complete reimagining of the nature of such relationship in the years to come.
How Open APIs can add to your Business Value?
Financial institutions are driving towards adopting an open API strategy, and they should embrace it with open arms. APIs can help them create novel products, provide improved and faster integration processes, and help deliver an engaging, and richer experience to consumers.
There can’t be a better time than now to adopt open banking, as it offers the potential to leverage technology to grow and scale on levels that were unimaginable a decade back. Open data sharing gives consumers access to their banking data, which will further allow them to make intelligent decisions regarding their transactional behavior, savings, and investments.
Small businesses can make the most out of this practice, as access to real-time customer data can prove transformational for them. Open banking promises an easier, fairer and faster funding application process while reducing the operational expense for the bank or financial institution. With this practice in place, funds can also be tailored to the specific needs of business and delivered at a faster pace.
To have open APIs in today’s world is all beneficial and no loss. Enterprises keen on adopting open banking, open APIs, can explore possibilities with Arttha, a Unified Fintech Platform. It provides open APIs to customers and allows them to create an ecosystem for greater adoption and interoperability. Transition to a better, secure and faster way of banking with Arttha now.