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How Open APIs are Improving Banking Services?

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Recently the word ‘Open’ has turned out to be a catchphrase for banks and financial services – open data, open APIs (Application Programming Interfaces), open banking, and so on. ‘Open’ defines the commitment of businesses to provide their services across the globe, so that key stakeholders or even competitors may utilize them to provide a better customer experience through digital ports.

The banking industry across the world has realized that Open Banking APIs redefine the financial landscape in many ways, especially by enhancing total consumer engagement and increasing revenues from new channels. Open Banking API permits financial institutions, to share data often through a third-party application.

According to a report published by PwC, there will be a considerable rise in the adoption of this technology across the industry with 71% of small and mid-size businesses going for Open Banking by the year 2022.

How Open APIs are Improving Banking Services?
With an Open API, banks can upgrade and improvise the existing offers and services.
The open bank APIs can also easily connect with other APIs in the market to enhance service offerings by implementing native fintech solutions in a plug-and-play manner.

Banks that do not use open APIs to improve their customer’s digital banking experience miss out on potential customers, revenues, technological innovation, and market impact.
To provide customers with control of their data, banks have deployed advanced open API technology to share the financial data with third parties.

APIs enable customers to monitor the credit score on their bank account in real-time and notify banks whether a consumer has changed the address, or whether an already existing address is available for delivery.
Before the end of 2020, 3496 Open Banking API products were made accessible worldwide, with 36% of API products exceeding regulatory criteria.

These APIs allow fintech product range to be produced and utilized by existing bank customers in automated workflows to drive Open Banking in 2021.

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