Banking: Who will really get benefitted in 2021?

Open Banking: Who will really get benefitted?

Banking as a domain has always been competitive. To keep up with the dynamics of this sector, banks and financial institutions are progressively experimenting with new technologies such as Open Banking and innovative concepts such as FinTech, specifically aimed at the banking sector.

The idea behind all of these innovations is still to provide consumers with a better experience and take advantage of the integrated system options available today.

Are you OPEN to open the bank?

The impact of technology in making our lives better and quieter cannot be underestimated. FinTech (an excellent combination of finance and technology!) Is one of the areas where the traditional banking system is becoming obsolete by the day.

The growth of the Fintech sector has been exponential in recent years, with the global adoption of Fintech increasing from 16% in 2015 to an average of 33% in 2017.

Open Bank API (excluding Open Bank API: A Journey, Part 1 of this series of 3) is FinTech’s latest offering with great potential to deliver a transformative banking experience to your end-users.

However, before getting started with Open Banking, it is important to understand what the concept is trying to achieve and who is really benefiting from it?

What is an open bank called?

With Open Banking, banks are embracing Agile technologies, building strong partner networks and building strong mobile platforms that meet consumer needs, enable instant financial transactions between customers and businesses, and enable cross-platform payments.

It works as a systematically designed collaboration model. Here, the bank’s banking and financial information/data is shared with trusted third parties (with the customer’s consent, of course!) Via API to provide users with advanced functionality.

Public banking is therefore a term for financial services as part of financial technology which refers to:

Use of open APIs that allow third-party developers to build applications and services around the financial institution.

2. More financial transparency options for account holders, from open data to private data.

Use of Open Source technology to achieve the above.

In short, “Open Banking is the ability to create new businesses and digital ecosystems through APIs provided by banks.

It allows customers to:

• Greater control over your data

• have a better experience in a safe, agile and future-proof method

• Generate new revenue streams and create a long-term sustainable service model for the entire industry.

Who Really Benefits From Open Banking?

The benefits of an open banking model are not limited only to consumers, but also to service providers. Pro, all about this.

the favor of the consumer

Of the many benefits of Open Banking for consumers, the most important is customer choice

As service providers, banks often offer limited options and the same services to all of their customers.

Public Banking, on the other hand, offers customers the advantage of having the freedom to choose between the different service providers available. It also allows customers to take control of their finances and make informed decisions to manage their accounts.

• Simplify payments with smart devices

With the Open Banking API, customers don’t have to wait in long lines to make purchases with physical wallets in stores. The concept introduces emerging technology applications such as Google Pay, Samsung Pay, Apple Pay, PayTM, etc. to make payments with digital wallets using your smartphone or smartwatch.

• Easy payment and exchange

The increase in the number of migrants around the world looking for better economic opportunities means that more money needs to be returned to their families. Banks have always found that international money transfers are painful and expensive. Instead of paying a high transfer fee to “money transfer companies” or the lack of good institutions, especially in rural areas, FinTech companies like NDASENDA have made the whole process very simple, smooth, inexpensive, and much faster. Once the API is open, you can transfer money, purchase services, and pay bills with a mobile app whenever you want.

Translate »