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4 Reasons your Definition of Open Banking is Too Narrow


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4 Reasons your Definition of Open Banking is Too Narrow

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4 Reasons your Definition of Open Banking is Too Narrow

  1. 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 WWW.PAYMENTCOMPONENTS.COM London 1 Canada Square, Level39, Canary Wharf, London E14 5AB, UK Tel. : +44 2071 172 538 Athens 14 Chatziantoniou Street, Marousi, 151 24, Greece, Tel. : +30 210 6145 050 4 Reasons According to Chris Petersen Read the full article at