With the advent of new technology, banks are pressured to meet the demands of today’s corporate consumers, such as providing the latest web 2.0 features and tools on their transaction banking platforms.
Online payment services such as PayPal, have made it easier for their corporate consumers to make a transaction online with just a touch of a button on their mobile phones. This has propelled banks and financial institutions to come up with similar mobile payment solutions to meet the needs of their corporate consumers as well. Tech giants have already paired up with banks to provide a mobile payment solution where payments are made possible using near-field communications (NFC), fingerprint readers, and other technology features for a seamless experience.
However, with the emergence of APIs, banks are set for yet another wave of digital disruption that will change the way corporate consumers approach banking. These small yet powerful tools are able to reach data stored in banks and other financial institutions by processing and analysing big data trends and patterns, providing corporate consumers with simple yet trustworthy answers. With the API strategy, banks and financial institutions can look forward to a new information exchange network, which will allow for smooth and secure flow of data among different businesses using banks as their core service providers, while still adhering to security and compliance requirements.
Here are 2 major changes that banks and financial institutions can expect to see in the future:
Banks can expect to go virtual with the emergence of API tools. These tools have made it possible for banks to retrieve information about their consumers within seconds after logging in to their bank accounts. This new infrastructure allows for better data sharing between banks and other business, as it helps to protect against fraud and detects potential scams using its data Analysis.
Banks can also expect a massive cut in costs with the advent of new technologies, such as VR systems, which can simulate real person-to person interaction without the need to go to the bank. However, this does not mean that brick and mortar branches will be completely dismissed. These branches are still needed for virtual banks to deposit money and perform transactions with other parties.
Customised Banking Experience
APIs have also made it possible for endless, possible opportunities with banking. In fact, it might actually change the way we approach banking completely. According to Banking Technology, the future of banking will be focussed on the user experience. Corporate consumers will no longer be bound to proprietary bank applications and websites. They will have the freedom of customising their e-banking interface. This means banks may no longer have to provide face-to-face customer service to corporate consumers. Instead, they will only act as infrastructure providers – keeping money and data safe, while third party applications will act as the service providers – offering services, solution and tools to meet the demands of the corporate consumer.
This method of banking will allow corporate consumers to achieve more than just the basic of online banking services. Corporate consumers will be able to do quick peer-to-peer loans (even between strangers), check if they can buy property, raise funds for a cause directly from a social network, and a lot more with just a touch of a button. It brings a whole new meaning to customisation as consumers are allowed to almost “BYOB” – build their own bank.
While APIs may not be new to the technology world, banks and financial institutions have yet to fully embrace these tools in their banking strategy. It is difficult to predict how transaction banking 2.0 will look like in the future, but with the advent of APIs, prepare to experience banking in a completely different way than what we are experiencing today.