The perfect blend of technology and the financial industry is now here, and India has witnessed its efficacy. The FinTech sector is currently booming at a faster pace, and the services or products associated with it are being adopted at a high rate.
Financial companies are now turning to using technology to offer the best services to their customers. As the behavioural pattern of the customers has now changed, and people are mostly relying on digitalisation to get most of their service requests attended, this blend between open banking and API banking is of utmost importance.
Let’s dive deeper into the concept of Open Banking API and how it is helping the financial business grow.
Open banking is the concept of the financial industry where information can be exchanged between two parties, mostly banks and FinTech startups. For instance, if you have an account with one bank, the data can be shared with your consent to non-banking financial organisations.
Some of the non-banking financial companies that operate with money lending, expense tracking or financial planning services are using open banking integrations. Following that, neo-banks and other FinTech startups are also leveraging the potential of APIs to embrace available banking facilities.
With such a safe exchange of data, FinTech companies have the liberty to provide client-centric and personalised financial services to the clients or customers. The banks or other financial players will collaborate immensely to develop client-centric and convenient solutions.
The primary goal is to meet the expectations of customers for easing the payment or banking-related operations. With this demand surge among non-banking financial companies or FinTech startups, open banking APIs are being used immensely.
Some of the benefits associated with open banking APIs for bankers and consumers include:
Banks will be able to collect valuable insights of consumers, such as investment records, financial goals, buying history and others. The banks can also use the same information for fine-tuning financial services or products for offering highly customised consumer services.
Open banking APIs help banks as well as FinTech companies to facilitate specific customer-centric products at a faster rate. Some of the services include loan processing, chat banking or risk management.
The FinTech startups make use of open banking APIs for gathering financial data from all the banks. By using that data, they have the flexibility to improve their existing products or innovate new ones with customers’ preferences in mind.
It creates a new stream of revenue for the banks, as they can monetise the integration of open banking APIs.
This is a clear depiction of how beneficial open banking APIs are for both banks as well as FinTech startups. The banks have a great customer base, and the FinTech startups have speed, innovation and technology. They both come together to make API Banking India a great hit.
FidyPay is one of the best open banking API service providers to help you integrate great FinTech products into your brand platforms. It will help you add more revenue streams to your business offerings.