One Simple Way to Make Your Banking APIs Profitable
- Seshika Fernando
- Vice President - Banking and Financial Services - WSO2
Even with technology budgets in banks continuing to grow (at the extreme end, JP Morgan Chase is slated to spend $12 billion on technology in 2022), questions remain on ROI.
CTO of WSO2, Eric Newcomer, states in an article by Finextra, that banks view technology as a cost-cutting exercise, as opposed to leveraging its true potential as a driver of change.
“This isn't necessarily a long-term winning strategy. There must be a way to invest and to bring the customers back in through the introduction of new products and customer experiences. Banks must transition from creating systems for bank employees to creating systems for bank customers. That means figuring out how customers want to use APIs and applications, not how the tellers at the branches want to use them, for example.”
Moving on from this mindset for institutions, which have traditionally been reluctant to change, is understandable but crucial for banks who wish to remain in business in this century.
With online experiences becoming more important, customers are seeking to find easier ways to purchase goods and services, open accounts, apply for loans and track their finances. To provide this functionality, application programming interfaces (APIs) are widely looked at by banks who view them as keys to unlocking the doors to the future of the BFSI industry. APIs allow software applications to communicate with each other. Thus, it is possible for a forward-thinking bank to use APIs as a differentiator to build new services at speed and develop personalized experiences, without compromising on user experience or security of its patrons.
Forward-thinking banks can download a complimentary e-book from WSO2, highlighting five ways where it has enabled global banks across the digital maturity spectrum, including ING, Crédit Agricole, and Société Générale to adapt, survive, and thrive in the API age.
Read this free e-book on how WSO2 has helped banks do more with APIs.
Photo by rawpixel.