4 Reasons your Definition of Open Banking is Too Narrow

1. 1.To launch digital products,
open banking technology is
quicker to market and more
cost-effective.
Your Definition of
Open Banking is
Too Narrow
Because the tech runs through open APIs, banking providers can use
only what they need for a given product or project. This significantly
decreases design and development cycles and increases the speed
to market, allowing for more frequent iterations in the quest to perfect
the user experience — all of this while delivering the scale and cost
benefits of the cloud to banks that use them.
2.Open banking won’t disrupt
a bank’s digital channels or
their technology stack.
Open banking technology is designed to be flexible and modular
— specifically so it can be used piece-by-piece alongside existing
infrastructure. It’s not meant to replace core processors as much
as it is to live next to them. Banking providers can surgically
implement only the technology they need, while removing
potentially extraneous costs associated with unnecessary
products.
3. Open banking technology
helps banks partner more
easily with fintechs.
Whether or not your organization has partnered with a fintech
company, you are likely familiar with the time and cost required
to integrate any new technology into your existing legacy
system(s). With open APIs, however, open banking technology is
written to be shared in a language that developers anywhere
can understand, making it easier than ever for financial
institutions to connect with third parties or have other vendors
connect with them on the institution’s behalf. An environment
that optimizes third-party integration gives banking providers a
new level of freedom when choosing whom they partner with
and what features they bring to digital channels.
4. Open banking can
provide new opportunities
to expand or evolve a
bank’s business model.
As account holders continue to unleash themselves from brick-and-
mortar banking — and as machine learning continues to replace
community expertise — banks and credit unions must evolve their
business model beyond what they’ve been doing for the last
century. Conveniently, open banking provides the foundation to do
just that. A bank, for example, could use open APIs to build a
Millennial-focused banking app that account holders throughout
the country could adopt.
Experience the
Future of FinTech APIs…
today
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4
aplonapi.com
Reasons
According to Chris Petersen
Read the full article at
https://thefinancialbrand.com/70063/open-banking-digital-fintech-api/