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How to create Financial Industry 2.0 with banking API

 

How banks operate today is just outdated. Their procedures tend to be complex, inconvenient and offline. Either the banks will adopt new technologies or innovative companies will remove the banks from the banking services.

The way we live today is completely different from the way people approached their lives a few decades ago. The essential tasks in everyone’s routine stayed the same, we work, we consume and we have fun, yet the ways we do this today are totally different.

When it comes to the consumption of financial products, it can certainly be challenging for various groups of people. While there are more financial products to choose from and even a greater number of organisations that offer such products than ever before, the process of asking for a loan, applying for a credit card or simply managing your finances is still quite a complex one and often requires visiting the premises of an organisation.

Online services. The full version.

Banks supply Internet banking and they do try to bring their services online. Even though you can now check your account balance, send transfers and perform other operations from the comfort of your couch, product adoption is where the banks suffer the most.

Many banks are failing so hard in making their products available online that they simply remove this option from their websites. Just try to visit a few banking websites and see how many of those offer an option to open account right through the website.  

With a banking API, a bank can now onboard new clients in a matter of seconds. Instead of performing a client identification in a branch, a bank may simply get KYC data from an organisation that has already completed it - client’s previous bank.

Customer Profile. In a detail.

One of the main issues of the banks is that they identify their clients, but they don’t really know them. Unlike Search Engines, Social Networks and other services we use daily, banks are not making much use of the data kept on their servers. In other cases, when onboarding a new client, a bank sees this client as a blank page. And this is wrong.

With the use of Kontomatik technology, a bank would be able to extract the data from his previous bank and, based on this, offer this client deals that would be both interesting and attractive. Hence, this is a truly win-win solution for the bank and for the customer.

Consumer Lending. Risk-adjusted.

One of the most profitable activities for a bank is the provision of the loans. Yet this is also one of the riskiest activities. With the help of such technologies as Kontomatik the banks are able to extract the history of operations and this data is vital for performing a proper credit scoring.

The market of loans is huge, yet more and more clients go to microlenders that lend money with significant interest rates. Kontomatik can enable a bank to offer lending services as fast and as efficient, while keeping the risks at the lowest possible rates.

Horizons. New ones.

Data is a new oil and with the superior financial data supplied by Kontomatik banking API, a bank can start offering its own PFMs, contact imports and many new great products and services.

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