Financial services firms are waking up to the value open banking initiatives and the fundamental role of APIs. Traditional banks understand that in order to better compete in the industry, they must develop their digital capabilities to avoid being dis-intermediated by new entrants with superior offerings and services.
Before getting into the API discussion. We should do our best to define what a API is. An API is a public persona for an enterprise/bank that exposes de ned assets, data or services for consumption by a selected audience of developers, either inside or outside your organisation. Business APIs are simple for application developers to use, access, understand and invoke.
The New API Banking Platform:
Traditional banking involves banks to control their entire end-to-end banking experience through their closed system that involves bank’s point of sale, web and mobile app. The biggest advantage of this model is that all processes, technology and their components were under control but also proved to be the drawback due to which personalized experience as per the ever-changing consumer expectations wasn’t possible due to regulatory and compliance issues.
The new age banking platform involves secure exposure of bank’s protected resources as APIs that opens access for new possibilities and opportunities for innovation to meet the expectations while protecting and controlling their own interests, offline data, legacy systems and processes at the same time.
- Web and mobile apps with complete account info, KYC fulfillment procedures, transactions, deposit requests
- Bank services information, locations, ATM finder, promotional offers
- Cheque deposit through the camera of phones, biometric login
- Development of digital wallets
- Digital payment through web/mobile apps, IoT devices, smart wearables
- Utility Bill Payments
- Invoicing and Bill Management facility for universities and hospitals
- Bank or third party partner led loyalty programs
- Real-time analytics to monitor customer activity, capital flows and market info
- Introducing bank as a trusted identity for secure authentication
- Predictive Analytics to monitor and fraudulent activity and clustering of customer data