How Open Banking is Reshaping the Financial Landscape
- Open Banking is popular worldwide
- United States financial institutions are "late to the party"
- Collaboration, innovation, and interoperability are keys to success
A few weeks ago we explored Open Banking and its impact. Open Banking is a system that allows consumers to share their financial data with third-party providers and enables access to a wider range of financial services. It's popular all over the world, but only recently emerging in the United States. MicroSoft Start has reported that banks in the U.S. are working to prepare for it, but it's slow going.
ET Edge Insights explores the ongoing rise of Open Banking and APIs (Application Programming Interfaces) which are enabling banks to deliver highly personalized financial experiences through AI, machine learning, and seamless integration across touchpoints.
In the dynamic landscape of technology, the evolution of Open Banking and the accessibility of Application Programming Interfaces (APIs) are revolutionizing the traditional banking sector. This transformation is not just a trend but a fundamental shift with profound implications for banks and financial institutions globally.
A Growing List of Benefits
ET Edge explores and expands upon the following benefits and aspects of Open Banking:
- Embracing technological advancements for enhanced customer experience
- The disruptive impact of open banking and APIs
- Unleashing new revenue streams and operational efficiency
- Fostering collaboration and innovation
- Envisioning a hyper-personalised future
- Operational benefits and enhanced security
...the advent of Open banking through APIs is dismantling silos within the financial industry, fostering collaboration, innovation, and interoperability. This transformative shift is enriching the customer experience by offering a diverse array of services and products tailored to individual needs, heralding a new era of banking excellence.
APIs are key to enabling core providers like Jack Henry & Associates, FIS, Fiserv, Alogent, etc. to utilize new technologies as well. This is the primary method for fintechs to provide their technologies to banking without the need of direct installations and integrations -- a benefit for those banks who do not possess the internal resources to install, integrate, and/or maintain these new systems.
This includes utilizing AI and machine learning technologies like OrbNet AI and OrbNet Forensic AI. These APIs enables OrboGraph to receive the check images for analysis and return scores directly to banks, core platforms, and also check fraud review platforms -- rather than needing to install on premise.
As the banking industry progresses, open banking through APIs is truly "dismantling silos" and transforming the banking landscape.