Technology gives banking a makeover – a peek into open banking

Technology, in general, has a huge role to play in the finance sector altogether. Take the case of the sudden influx of trading bots like Crypto Code for example. Even those who had been practicing age-old methods for trading now use bots at some point or the other. In the same way, technology has influenced every nook and corner in the finance sector, banking being no exception.

Banking might be the one sector that always shows a slight resistance to adopting too much tech. But today this is also the one sector where technology has created wonders. Open banking is one of the revolutionary examples of how technology can improve customer service in banking. This is a concept that can prove fruitful for the banks as well as for the customers. In the growing digitization of economy and digital payments, ideas like open banking can help keep conventional banks running. These can also help the traditional banks adapt to the changes in the market and provide based on the changing demands from the customers.

Get to know what it is about

If you ask any tech expert they would tell you about how going with open source applications can help improve security, as ironical as it might sound. Similarly, open banking is about using application programming interfaces that allow secured financial institutions to gather customer information. There are various little details that are meticulously put together. And these are then interpreted and compiled to provide a comprehensive transformation to the banking services. So customers would be able to enjoy a personalized banking experience, one that allows them to complete transactions without delays.

A healthy competition

As open banking is catching up around the world there is more and more financial institution joining the race and this is resulting in a healthy competition in the banking industry. It is all about the struggle to adopt the tech the right way and offer the best experience for customers. Today customers do not hesitate to move their accounts and give up on a bank if the customer service is not of a healthy standard.

There could be different types of APIs used

Not all banks are comfortable in joining hands and collaborating with too many external partners for gathering data. Public APIs are about expanding the reach and using all the potential paths. Partner APIs are about having a handful of trusted parties to work with and internal APIs are for the banks were cutting down operating costs is the prime concern.