Reports show that more consumers experience better banking services with fintech firms rather than traditional banks. These statistics elevated the collaboration between fintechs and banks, which results in a more customer-centric industry. The collaboration fostered the appearance of API products provided by fintech firms to other financial institutions. What is API?
API is a programming interface for software development, allowing a third-party to access common banking tools and services, such as financial information, customer accounts, and product catalogs. Therefore, Open API is a quick and convenient connection between a bank and a third party. What kind of APIs are used in banking?
Partner API: Banks partner with preferred third-parties, whose integrations they would like to provide to their customers. Partner API facilitates the expansion of banking services through new channels in this way.
Private API: Contrary to the partner API, banks can choose to develop the private API in order to enhance their internal operations.
Open API: Such type of API implies a publicly available application programming interface that financial institutions can use to implement services within their operations. For example, Crassula Open API connected to Banking allows to offer connectivity and various integration possibilities within the services the business provides.
What are the benefits of FinTech API integration into Banking?
Customer-centric approach: The development of products and services will become faster as banks will have more capabilities to respond to digital technology disruption. Due to the access to additional customer data through digitalization, banks are able to enhance their customer experience.
New products: Whether a bank decides to implement a Partner or Open API, it will provide more opportunities to improve their digital banking services. Collaboration with FinTech firms allows banks not only to integrate their services into traditional banking, but also to have a fresh perspective on existing products, and improve those.
Better operations: It is not a secret anymore that automation highly supports faster and more efficient operations. Not only that, Open APIs for banking provide endless possibilities to integrate applications that will create a seamless experience for customers.
How to implement Open API for Banking?
First of all, open banking APIs are applicable to businesses beyond traditional banking, with the possibility for companies to integrate embedded banking and payment systems into their services and allow their customers to bank right from their platform. The fastest and most efficient way is to address a FinTech company that has expertise in the field of banking and payments and provides an Open API for banking. Crassula core API connected to its Banking product allows businesses to build and manage banking accounts, payment cards, client management systems, currency exchange, push notifications, and much more. All of these and even more services that are provided by Crassula in their Banking platform for business. Crassula Open API enables businesses to connect and create functional products and services within days.
The banking industry is changing towards digital. Banks and fintech firms recognize that their collaboration would benefit the modern customer, and therefore themselves. By now, not a lot of businesses have addressed this trend. Improved customer experience now could be a significant differentiator that will increase retainment and increase switching costs. If you want to use the opportunity to be among the first to do so, check out Crassula Open Banking offer at crassula.io
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