Open banking technology: How to get the most bang for your buck

The things banking institutions can accomplish with APIs keep growing, but most institutions can't realistically tackle them all at once. The first step is to determine what's really important to the organization. The next step is to focus on those that will deliver the greatest return on investment.

The open banking landscape is filled with questions. They are not necessarily about the value that open application programming interface (API) integrations can deliver to financial institutions (FIs) and fintechs — that’s fairly well established at this point. Instead, they concern where tech spending dollars should be funneled for the greatest impact for customers and for banking institutions.

Open banking is an approach where information moves seamlessly between various financial services providers through APIs, allowing separate systems to communicate with one another. There are more entry points for open API integrations today than ever before: payments, account opening, loan origination, direct banking initiatives, crypto and fintech partnerships among them.

It’s tempting to want it all. But that makes it easier than ever to get distracted from what will deliver real value to your financial institution and its account holders.

Open Banking is a Tool, Not a Destination

Competition in financial services demands innovation. However, it also leaves institutions vulnerable to a lack of strategic planning — in this case, of identifying how they can best leverage the broadening suite of APIs to align with key priorities.


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