Most financial institutions and FinTech organizations made significant inroads in providing digital capabilities that have defined financial services over the past decade or so. The challenge is leveraging those channels to keep pace with innovation.
Using open application programming interfaces enables financial service organizations to evolve quickly and provide the same type of experience that large organizations can offer consumers. The internet, smart phones and on-demand retail have all played a role in changing consumer expectations, and that goes for their financial institution as well as everything else.
If their financial service organizations cannot provide the experience customers demand, there are plenty of options, elsewhere, that can. A savvy organization will get in early to avoid rushing to play catch-up once customers come to expect it. Partnering with (instead of competing with) FinTechs will accelerate these opportunities.
APIs are significant as they relate to financial institutions. They have allowed software developers to provide software ‘add-ons’ that supply specific functions not available in a core system application or within peripheral systems to the core application. Additionally, apps can usually improve the customer experience with complementary data.
APIs offer many benefits. From a business viewpoint, APIs enhance:
- innovation
- broader adoption
- a greater ability for partnerships
From a software design perspective, using APIs gets you:
- united systems
- accepted data encapsulation
- software recycling across applications and organization silos
In the new Fintech landscape, tech firms are developing innovative solutions that enable financial institutions to deliver the solutions that their customers demand. NXTsoft offers secure, open APIs to seamlessly connect Fintech solutions to financial institutions, facilitating data sharing across all channels.
Related reading:
Fintech Partnerships Help with Open Bank Challenges
Open Banking Tech Ecosystems Encourage Innovative Advantages
New API Security Monitoring Solution For Financial Institutions
