While many IT firms are finding it difficult to come to terms with the mass effects of the digital transformation taking place everywhere, the financial sector has adapted remarkably well. This is mainly because the banking world–and by extension, the financial technology (fintech) sector– has focused on consumer connectivity through the integration of their services.
Why Have Banks Taken Innovation as Their Approach?
The simplest answer to this is that banks and other financial institutions have used the growing reliance on technology and the widespread digital transformation to their advantage. They have decided to use digital technology to both upgrade their services and innovate their practices in the most cost-effective way possible.
The fintech sector is completely dependent on their ability to connect with their customers and deliver top-notch customer service. Banks need customers and customers need to be confident that they can trust and communicate with their banks no matter what. In short, banks, investment firms and other financial organizations need to make sure their digital customer service experience is flawless.
This is why the banking sector has taken innovation and integration as their road to success. Moreover, integrating with other services is how they acquire new customers and retain old ones. For instance, online payment and banking apps such as Venmo or PayPal are usually accessible to customers browsing through eBay or Amazon. This integration results in quick and easy transactions for consumers who are more likely to keep using these services.
APIs and Digital Convenience in Banking
An API (Application Program Interface) is an interface that synchronizes, links and interacts with the database of service with any application. In other words, they work as a kind of bridge that guarantees the connection of data without the need for any sort of third party. It connects or integrates a number of different systems, resulting in a more coherent and organized use of data. The integration of various systems is just one of the many benefits one can get from MuleSoft.
In the banking system, it is extremely helpful because APIs will connect their customer data with different applications or programs. This in turn, creates an agile network of payments and services, all tailored to the needs of their clients.
This benefits all the parties involved. Open banking APIs create a rich and layered financial ecosystem that interlinks customers with their banks and businesses. This will lead to everyone profiting; customers will get the speedy service they desire and business owners and financial organizations will get a steady flow of revenue. The integration of services will attract new customers as well as reaffirming the brand loyalty of long-time consumers.
What Do Financial APIs Offer Customers?
Customer Financial APIs are a kind of specialty API that gives financial institutions a way to serve each customer exactly what they want based on the kind of account they have and the data they provide. This tailored approach delivers customer satisfaction and increases the security of online banking transactions. They also have a number of other benefits. These include:
- Mobility: APIs can deliver all the banking services a physical branch can offer– but does so in a way that lets you keep your bank in your pocket. You can transfer money, open an account, review a statement right from your phone.
- Flexibility/Freedom: Customers don’t have to be skilled in financial or technological jargon to understand their transactions. The interface is very user-friendly and lets the customers decide what is best for them. Furthermore, they give consumers plenty of options and services so they can choose what they want to do with their money.
- Customization: Each customer will manage their finances differently. Customer financial APIs understand this and will, therefore, cater to each customer based on their needs and wants. They will offer services that are relevant to them and provide personalized features based on what each particular customer needs.
Another reason why open banking and customer financial APIs are so popular is that they integrate several different services and present them in a neat package to the customer. Furthermore, APIs enable banks to connect to third-parties, linking customers to countless other financial and technological services that are available.
For instance, customers can pay their electricity, water or phone bills through their online mobile banking app. People can also review their mortgages online, with just the push of a button. You can find out more about service integration and how it works here.
The fintech sector has made some mind-blowing advances in recent years, all thanks to their willingness to adapt, innovate and integrate. Open banking and mobile banking services have changed the very way financial institutions operate in an increasingly digital world.
Banks have been using the growing widespread use of APIs to their full advantage, using them to cater to the needs of their customers and to integrate with other services that are relevant to them. It is through this adaptation that they are successfully traversing through customer experience integration.
Plekton Labs is a MuleSoft and Solace consulting company that helps organization better service integration, customer case management with providing 360 degree view of support case, adding reliability in case synchronization process etc. With experience in industries all across the board, Plekton Labs specializes in Fintech due to years of API building and managing. Contact Plekton Labs to know more.