Using APIs have empowered Big Tech firms such as Amazon and newer, smaller entrants like Uber to enter the financial services ecosystem, stimulate collaboration and innovation, and engage customers with data-driven, personalised products and services.
At the same time, open APIs have enabled banks to realise multiple competitive advantages, including the ability to build enhanced offerings, improve customer engagement and loyalty, and create new digital revenue channels. They have also opened the way to building smart partnerships with third parties.
Yet, realising the full potential of APIs in banking is far from being achieved. Determining future priorities must go beyond compliance. UK and European regulators were drivers for advocating open APIs under PSD2, but financial and non-financial players in regions such as Asia also tapped into the potential of data sharing and are arguably, offering more successful business models. The push for open APIs is also more market-driven in the US.
Further to this, it must be addressed that in a world where data is currency and a customer-centric experience is the ultimate option, traditional lenders are falling behind in comparison to leaders in technology. Therefore, banks should consider APIs as the best route to increased revenues, efficient partnership models with fintech firms and ensuring every customer interaction is as seamless as it could be.
Sign up for this Finextra webinar, in association with FintechOS, to join the panel of industry experts as they discuss the following areas:
- How APIs and digital banking ecosystems create value
- Using technology to underpin customer data
- How to increase customer engagement with APIs
- The advantage of building data-driven products and services
- Business models and revenue generation
- The embedded finance play across the ecosystem
- Jane Cooper – Researcher, Finextra [Moderator]
- Michael Pierce - Commercial Director, Banking - Western Europe, FintechOS
- Vilmos Lorincz - Managing Director, Lloyds Banking Group
- Agnija Gailane - Community Manager in Open Banking, Nordea