1 / 17

What Are Open Banking APIs

Open banking APIs are open source applications that serve as the interface that allows different financial institutions to transact business with each other while complying with regulations set forth by the Federal Reserve.

jmrinfotechnology
Download Presentation

What Are Open Banking APIs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What Are Open Banking APIs ©Copyright by Jmrinfotech.com

  2. Banks and financial institutions are under intense pressure to ensure their infrastructure is ready for the change with the tides of open banking (such as Oracle Flexcube universal banking) rolling in. APIs have become a critical component of these preparations and a gateway for smarter banking engagements with consumers. ©Copyright by Jmrinfotech.com

  3. Open banking APIs have brought about major changes in the financial sector. Here's everything you need to know about them if you're interested in opening your business to third-party payment solutions. ©Copyright by Jmrinfotech.com

  4. What Are Open Banking APIs? • Open banking APIs enable secure and automated access to a bank's backend. The aim behind open banking APIs is to allow third-party developers to build and launch new services or applications that will enable consumers to access financial services faster and more efficiently. ©Copyright by Jmrinfotech.com

  5. Open banking APIs are a new model that makes it possible for banks to take advantage of the success of FinTech apps without the usual restrictions that include long timeframes to set up, high costs, and an inability to modify the API. ©Copyright by Jmrinfotech.com

  6. Why Are Open Banking APIs Important for Consumer-Directed Finance? ©Copyright by Jmrinfotech.com

  7. 1. Speed to Market • Traditional bank infrastructure prevents speed, agility, and flexibility from supporting the demands of modern consumers. By adopting the Oracle Flexcube 14.x, banks will be able to launch new services and products much faster and in a more agile and cost-effective manner. ©Copyright by Jmrinfotech.com

  8. 2. Innovation • Open banking allows banks to partner with innovative FinTech companies to build new solutions tailored to meet customer demands and improve customer satisfaction. ©Copyright by Jmrinfotech.com

  9. 3. Risk Management • Open banking APIs and Flexcube implementation allow banks to offload non-core risk to fintech companies willing to accept the risk while allowing the bank to focus on maximizing customer satisfaction and the business's core competencies. ©Copyright by Jmrinfotech.com

  10. 4. Extended Reach • Open banking APIs allow banks to reach out to a larger customer base by allowing them to leverage the distribution channels of FinTech companies that can reach customers outside of the bank's traditional footprint. ©Copyright by Jmrinfotech.com

  11. 5. Market Growth • Open banking APIs help FinTech companies grow their businesses by allowing them to pull data from the banks and access potential customers, helping them to build new Flexcube products and services to meet the demands of a larger customer base. ©Copyright by Jmrinfotech.com

  12. How Banks Can Prepare for Open Banking Success ©Copyright by Jmrinfotech.com

  13. 1. Get rid of your legacy systems • Open banking APIs are designed to work with modern technologies. So banks need to ensure that they have updated their legacy systems to adhere to the latest technologies to take full advantage of these APIs' benefits. ©Copyright by Jmrinfotech.com

  14. 2. Seek out partnerships with FinTechs • With the increase in competition, the banks will need to ensure that they have the support and knowledge of FinTechs to meet this challenge and help them develop the proper infrastructure to utilize these APIs. ©Copyright by Jmrinfotech.com

  15. 3. Develop an API strategy • With the new developments in open banking, banks will need to get their house in order by having a strategy for using these APIs. This will help them ensure that they are ready for the changes that the new regulations will bring about for financial institutions. ©Copyright by Jmrinfotech.com

  16. 4. Ensure security standards • To prevent any security breaches, banks will need to ensure that they have the right technology in place and will also need to hire the right people who are well-versed in the new technology. ©Copyright by Jmrinfotech.com

  17. Conclusion • Each startup and financial institution is measured by the quality of its API, which allows users to quickly get accustomed to using the service. The possibilities of such Open Banking API systems like Oracle Flexcube are virtually endless, as the technology allows for new business models and innovations. ©Copyright by Jmrinfotech.com

More Related