Ways Financial Service Firms Can Benefit from Open Banking APIs: Part 2

The development of the FinTech industry has had a significant influence on the dynamics of financial services ecosystem. APIs became one of the principal tools that must be adopted in order to create a stable basis for the future success of open banking.

In this article we will talk about the ways open banking APIs can improve overall customer engagement within the industry.

Thanks to the open banking APIs, banks became able to keep up with the changing demands of the public and create offers that attract potential customers. Such engagement is highly important, especially in the times when newcoming FinTechs are changing the landscape of the financial industry with new services and solutions that respond to virtually any need out there. The environment has become highly competitive and traditional banks must adopt innovative developments in order to meet the challenges. Continuous upgrades and evolution are central for traditional banks’ survival.

Banks receive a great opportunity to appeal to existing customers through sharing data with startups and FinTechs via APIs. Customers will appreciate seeing that their provider is choosing to support innovation and digitalization of the industry and is moving beyond the constraints of traditional banking. Moreover, other private and corporate users will assess such bank as a promising alternative to their current banks that might be rejecting the idea of open banking APIs. At the end of the day, customers give preference to the providers that are able to constantly satisfy their needs with upgraded product offerings. This becomes an easy task for those traditional players that chose to integrate the innovative technologies and join the open banking revolution.

Besides, customers gain the ability to interact more consciously with their financial data in a variety of innovative ways. In the long-run this has a positive effect on brand loyalty and customer satisfaction. As users are the ones who get considerable benefits from inventive technologies, they are widely demanding their adoption by banking institutions. For them it is important to have an innovative provider that will constantly strive to improve customer-experience through the use of open APIs.