Written by CFTE’s Experts
Banks, payment providers, wealth management firms, and various other financial institutions face serious disruption due to regulatory pressures and increasing demands of industry. These institutions have to rethink their established possibilities, priorities, and products to lay the groundwork for future success. Fortunately, API platforms are key.
An API is a set of protocols that allows applications to talk to each other. These have become important for the future of retail banking as these are going to help create a more dynamic and stronger customer tie.
Undoubtedly, various industries are already using internal APIs for years. However, APIs have become pivotal for the retail banking future in the face of increasing competition. These are important to innovate and meet the changing demands of customers quickly.
APIs are now helping retail banking sectors to collaborate with stakeholders seamlessly. It is important to help them achieve their goals in this digital world. Even more, these are effective for creating value-based and personalized market offerings for the customers.
Even more, it seems like with collaborators who are pushing the retail banking sectors to adopt APIs, the sector will be eventually forced to share data with their collaborators. Overall, API adoption is increasing in this banking sector for multiple reasons:
– Retail banks are preferring APIs for tighter system integration to enable agile and fast services.
– APIs can help retail banks improve coordination, break soils, and boost the speed of transactions and processes significantly.
– Another way in which APIs are being used is to build scalable and independent platforms with greater resiliency.
Here are some use cases which can help you to understand the role of APIs in retail banking:
– APIs are the foundation of service-driven websites and smartphone applications because they enable applications to pull in functionality and features for multiple sources and more effectively control the consumer experience.
– APIs are also being used for remote mobile deposit capture and photo bill payment in retail banking
– APIs in retail banking can transfer loan application information automatically.
Here are the companies who are adopting APIs technology in the retail banking sector:
– The United States Banks such as, Wells Fargo and Citibank have rolled out APIs in various consumer usage categories and allowed third-party integration with Select TTPs.
– Ahead of the deadline of PSD2, major European banks, including Spain’s BBVA, Scandanavian Nordea, and Denmark’s Saxo Bank, have also launched open banking platforms using APIs. Many of these are specialized in account aggregation, allowing their consumers to see all asset and bank accounts at a glance in one portal conveniently.
Overall, APIs platforms are helping the retail banking sector to seamlessly improve consumer experience. Even more, this technology is the future of retail banking, which means every company in this sector has to adopt this technology to improve its operations and stay ahead of the curve.
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