As integrated financial services continue to grow, executives and decision-makers in banking organizations see potential benefits to having an open banking infrastructure.
There is no single model for open banking success, but the needs of various financial institutions vary, forcing open banking practices to be adopted and modern approaches to continue to evolve.
Open API integration is one of those approaches that continue to evolve. Banks can determine the direction of operations, revenue, and customer experience by tracking these 4 pillars.
1) Revenue.
Successful API implementations earn new revenue by directly charging for access to APIs.
2) Increased rate of innovation.
Open APIs allow for outside innovation, bringing new perspectives on how to use data to increase revenue.
3) Internal key performance indicators (KPIs).
Using the data produced by APIs, additional improvements to the environment and processes can be made and measured. For example, as a reusable component, APIs can impact new product interface design time.
4) Ecosystem growth.
Successful open APIs have network effects, such as growth in the number and reach of influencers. To have the widest audience, even well-defined APIs should minimize customization to be useful across a range of environments.
The speed of change in digital finance continues to increase. Banks who do not know how and when to respond will fall behind the curve —— so far behind that, they may not ever be able to catch up.
Learn more about developing an open banking infrastructure and implementing APIs by clicking the link below.
