How does Open Banking help Fintechs to fulfil customer expectations_=

1. FINTECH HOW DOES OPEN BANKING HELP FINTECHS TO FULFIL CUSTOMER EXPECTATIONS The world is on the cusp of an epochal transformation in digital ?nancial services. Open Banking Technology is replete with potential business models as social media were 15 years ago and e- commerce 20 years ago.  Open Banking, fuelled by regulatory, technology, and competitive dynamics, brings hyper-relevant data and platform-based distribution networks to the fold of ?ntech companies. This helps them deliver a seamless and engaging digital experience that customers are eagerly looking for. One of the most challenging aspects of Open Banking is the security and compliance concerns. Hence, sharing data only with the consent of the customers (i.e., regulated access) is at the heart of Open Banking Services. However, it is interesting to note, that a study revealed – 60% of Americans choose ?ntech over privacy! Let us start by understanding the need for this disruption in the ?nancial services sector called – Open Banking We are in an era where immediate access to credit card payments, bill payments, mobile recharges, direct debit control, mortgage comparisons and lending, and so much more is achieved with a mere swipe on a smartphone! These apps are powered by ?nancial data available with banks and evolve with the changing need of the hour. Fintech startups and ?rms are one of the major drivers of such changes. The sole aim of any startup is to create new products and services that solve a consumer problem and distinguish themselves from their competitors. And why should ?nancial services startups be any different?

2. Banks are traditionally known to offer services with higher operational costs and complexities. Today, customers look forward to personalized solutions, even in the banking domain. However, the risk- averseness of banks and tech-driven tools aimed at offering hyper-personalized ?nancial solutions by Fintechs have opened the doors for Open Banking Technology worldwide. Thus, Open Banking System is the process of banks and other ?nancial institutions making data available for regulated service providers to access, use, and share via Application Programming Interfaces (APIs). Open Banking facilitates the networking of accounts and data across institutions for use by consumers, ?nancial institutions, and Third-Party Service Providers (TPPs). It allows new companies and new products to penetrate the market, by using this data in helpful, and innovative ways. Application Modernization for ISO 20022 adoption DOWNLOAD WHITEPAPER Listed below are a few of the reasons why Fintechs and Open Banking have become indispensable to end-customers: Greater focus on customer experience over simply offering traditional banking services Ever-growing in?uence of the internet and smartphones that call for innovative mobile apps Completely online end-to-end cash?ow Financial solutions that drastically reduce the turnaround time between two processes as opposed to the conventional operational delays. Comprehensive solutions that bring together diverse applications on a uni?ed platform

3. Why must Fintechs collaborate with Banks to harness the true potential of the Open Banking System? In the $400+ billion Open Data Economy, ?ntechs can in?uence the entire ?nancial value chain beyond payments and retail banking. They have the technology, strategy, and resources to develop apps and innovative solutions that enhance user experience. Fintechs aspire to be the one-stop solution to all the banking-related activities of customers (B2B and B2C). However, the requirements for such a transition are uneconomical and time-consuming. Thus, taking away from the core business aspects like technology and innovation. To leverage the end-bene?ts of Open Banking Technology, ?ntechs must partner with traditional banks to facilitate:  Access to Funds As banks are THE source of money  Access to Data To monetize internal customer data from banks by channeling into the development of useful ?nancial solutions.

4.  Regulatory Compliance To ensure compliance with established guidelines that protect customer data  Consumer Con?dence To leverage the inherent consumer loyalty to banks  To process payments By developing user-centric apps that employ established bank cards like debit cards for transactions.

5. Open Banking Platform – A Global Perspective In many nations, Open Banking is ?nding many takers. In the European Union, the Payment Services Directive, or PSD2, has jump-started growth from small business lending to new payment options like cryptocurrency to more lucrative savings accounts. In fact, customers in the largest trade block are loving it more than ever. Similar regulatory initiatives are underway around the world in countries like Japan, Singapore, and Australia. Though the US government has been less forthcoming in enacting pro-Open Banking legislation, the Biden administration has given enough hints at boosting pro-Open Banking steps like the executive order issued on June 9, As on the expected lines, it is tech leaders like CTOs and CIOs of ?ntech ?rms who must herald the new path to make customers future-ready by tapping the digital impulses of the times. Want more market insight on why Open Banking is the go-to for ?ntechs looking to drive customer acquisition? Business Email Get in touch

6. Open Platform Banking has enriched the Fintech companies’ goals in the following ways: Open Banking System allows Fintechs to access consumer banking trends alongside individual account details from banks. They leverage these insights to design innovative ?nancial products for end customers. Fintechs get an opportunity to offer frictionless customer experience in real-time through innovative ?nancial tools like PFM, credit services, wealth management, etc. Post pandemic, the use of mobile banking channels has increased by 20-50% and is expected to grow even further. Fintechs have an upper hand with their tech-driven Open Banking business framework to leverage this trend and gain pro?ts. With the vast amounts of data being shared, Fintech ?rms can bridge the gap between ‘what traditional banks offer’ and ‘what customers expect’ with speed and e?ciency. They also get the chance to partner with distinguished banks and access the banking data of their distinguished customers. Conversely, banks must also scout for the best Fintech ?rms in the market to collaborate with and promote customer acquisition and retention through improved banking services and tools. This partnership allows the freedom to test new ideas beyond the infrastructural and cultural constraints of banks and helps overcome internal obstacles to innovation. What are the pain points that Fintech ?rms have to navigate to ensure end-bene?ts from Open Platform Banking?

7. As digital transformation is gathering more pace, customers are looking for faster, better, and more seamless experiences. This calls for burning the midnight oil on the part of CTOs and CIOs at Fintechs to be more agile and keep pace with market trends and competition. To further elaborate the above-showcased challenges, here is a bit of detailed explanation on what it is all about: Since Fintechs bring with them a culture of disruption, tech leaders have to come up with the necessary gateway to innovations as they operate outside the purview of the traditional banking framework. Also, the prime focus of CTOs and CIOs at ?ntechs must be – bringing out the core competencies while sharing the burdens of compliance, risk, and costs with ?nancial institutions (banks). The Fintechs have to rely on more rigorous systems to continually seek consumer consent for data to be shared. The type and volume of banking data shared are incredibly extensive and Fintechs need high-end software to manage and process the same usefully. The ?rms also have to consider consumer inertia and the resulting delay in time-to-value when introducing newer ?nancial products and services in the market. They have to be capable of easily building, training, and deploying machine learning models.

8. Fintechs must leverage arti?cial intelligence (AI) to make real-time predictions much easier. Network externalities are the result of choices made at various levels of the design of a product: data format, GUI metaphors, API, and so on. They decide the level of interoperability, compatibility, and ?exibility permitted within the use of the product. Exploring platform envelopment strategy to monetize data from the banks to create new ?nancial products for the consumers – B2C and B2B. Open Banking Platform signi?cantly enhances user experience, which implies higher automation, more time to focus on other core areas, elimination of manual task hassles, and eventually cost- saving for businesses (B2B) and better ways to spend, borrow, and invest for customers (B2C). How do APIs contribute signi?cantly to a seamless Open Banking experience for Fintechs? Application Programming Interface (API) enables cross-communication between various systems. Fintech companies use APIs to enable data access in ?nancial transactions among the involved entities like – banks, third-party providers (TPPs), consumers, and websites. Banks, e-commerce companies, merchants, and similar entities must connect with Fintechs to expand their services and stay competitive in the market. This is achieved through ?nancial solutions like apps and tools innovated by Fintechs with the help of data gained via Open Banking APIs. APIs are the building blocks that provide a highly-de?ned and customized infrastructure to access, regulate, and process relevant data. This data is then channeled into creating customer-driven ?nancial products and services. Change tech trajectory with Techwave’s APIs With advanced services and technology, Techwave (a software solutions company, established in 2004) has been changing the digital landscape in the US. Techwave’s systems, known for their intelligent automation, industrialized assets, specialized skills, and global delivery capabilities are scalable and interoperable. This empowers them for faster data exchange in both internal and external applications. Techwave’s ‘Cloud First’ framework is meant for addressing technology and business challenges while modernizing enterprise applications. Its API-enabled or Microservices-based applications ensure transformation on multi-cloud/hybrid environments.

9. By harnessing the power of Microservices, API Gateways, and Enterprise Serial Bus platforms such as Mulesoft, Techwave’s Enterprise Application Integration Services (EAIS) puts thrust on integration requirements by evaluating databases, work?ows, applications, and security. Techwave’s ?exible and local language-friendly support operations embrace digital transformation to unlock applications and data silos for standard data de?nition, automated and connected work?ows, and faster business processes. Techwave has also created the Fintech Center of Excellence (CoE) which is dedicated to Fintech initiatives like Open Banking Software to deliver next-generation services and signi?cantly decrease the time-to-market for global Fintech companies. Low maintenance enterprise application integration from Techwave’s stable makes seamless integration between business processes hassle-free and easy to maintain post-deployment. Curious to know how ?ntechs across the globe are implementing Open Banking to revolutionize ?nancial services? Business Email Get in touch Security Mechanisms to protect Consumers and Providers and Enablers for Open Banking  Open Banking lets consumers share their ?nancial data with third-party ?nancial products and service providers. This sharing of data is done through APIs (Application Programming Interfaces), which are a set of software rules that govern how different applications can interact with each other. While Open Banking has the potential to increase competition and drive innovation in the banking

10. sector, it also raises important issues about security. Data sharing between multiple parties is the prime concern amongst customers, and there is a greater risk of it being compromised. Get relevant insights on cyber security in the Fintech Sector DOWNLOAD WHITEPAPER To combat security challenges in open banking, Techwave provides a simple, convenient, and secure experience when customers are transacting. We’re committed to developing innovative security mechanisms to protect consumers, providers, and enablers for open banking. For instance, Techwave uses a robust framework to deliver high-quality banking software products. We also use secure communication protocols to maintain privacy, integrity, and data authentication. In this article, we’ll explore some of the security mechanisms provided by Techwave that have helped protect consumers, providers, and enablers of open banking. By implementing these measures, organizations can ensure that their data is safe and secure, and customers can, in turn, control their ?nances in a better way. SSDLC  a. Adopt a Secure Software Development Lifecycle (SSDLC) and set up a governing body that drives its adoption and continual re?nement of the tools and processes b. Publish the SSDLC process for community reviews. This might seem a risk initially, but research has shown that community-driven initiatives result in more mature processes c. Build using highly curated and approved open source libraries. d. Adopt shift-left as a mechanism to anchor all development practices to security

11. Networks  Build  Secure Communications  Databases  Identity Management  Logs, Exports, Noti?cations  Archive  Playground  Techwave has enabled a secure authentication platform for providers and consumers. Also, it has permitted them to meet the stringent security requirements of open banking initiatives. With our experience and expertise in developing innovative security products, we are well-placed to help our clients address the challenges posed by open banking. Techwave’s solutions have helped several organizations stay one step ahead of evolving cyber threats. PREVIOUS POST How can banks bene?t from enhancing the Third-Party Provider (TPP) services via Open Platform Banking NEXT POST What to do if you were ready for Black Friday sales, but your ecommerce site wasn’t…

12. Search here.. RECENT POSTS Arti?cial Intelligence: How is it signi?cant to the gaming industry? A Comprehensive Look into the World of Cloud Computing How Can Your Organization Bene?t From Application Modernization? What is LiDAR? A Guide to its Technical Aspects Lidar Technology: Unlocking Greater Accuracy and Precision in Utility Operations CATEGORIES AMS Analytics Arti?cial Intelligence AWS Big Data Blockchain BPO Cloud Company Announcement CRM Digital

13. Digital Transformation EIM EMI Engineering EPM ERP Events Featured Fintech IoT IT infrastructure SAP SAP AMS Validation ABOUT TECHWAVE Techwave is a leading global IT and engineering services and solutions company revolutionizing digital transformations. We believe in enabling clients to maximize the potential and achieve a greater market with a wide array of technology services, including, but not limited to, Enterprise Resource Planning, Application Development, Analytics, Digital, and the Internet of things (IoT).  SERVICES Enterprise Digital Services Engineering Services Enterprise Business Services

14. PLATFORMS SupplyVu™ Autonetics Platform Hybrid Cloud Management COSMOS IoT GLOBAL HEADQUARTERS 13501 Katy Fwy Suite 1000, Houston, TX 77079, USA. Ph:+1 281 829 4831 info@techwave.net FOLLOW US  Techwave © 2022 All Rights Reserved. | Privacy Policy | Cookie Policy |