Open APIs: the key to creating a connected digital ecosystem
As business strategy is re-hauled, open API integration offers companies and institutions of every kind countless advantages.
It should come as no surprise that European banks are increasingly feeling challenged by the requirement to open their payments infrastructure and customer data assets to other banks and tech companies, allowing them to make revenue from payment and information services.
But it doesn’t necessarily need to be that way. And challenger banks have figured it all out.
By opening their APIs to third party service providers, challenger banks are becoming open banks on their own terms.
Now, banks all around the world can join the game and enrich their closed legacies with an open API platform, which allows them to:
Drive more revenue
Attract more customers
Retain and increase competitiveness
In maturing markets, where innovative approaches are imperative, banks are more readily adopting novel approaches to tackle challenges.
Free of legacy processes and culture, these banks are using their agility to their advantage, integrating new features without replacing entire systemsand platforms.
Case in point: Africa
Africa’ vast non-urban territories act as a barrier for banks looking to reach areas which lack financial services. But agency banking is an ideal solution which can overcome distance complications quickly, ensuring that crucial services are delivered in a timely manner.
In countries like Nigeria and Kenya, financial organisations are using technology agents to sell a greater variety of specialised products and services on behalf of banks, in more rural regions.
Adopting an open API strategy allows banks to become technology leaderswith a marketplace model, monetising both platform access and trading opportunities. Following the model set by the Tech Giants, platform-based technology leaders, banks can also create access to rich data, which is driven by all the transactions performed on the platform, whether or not they are offered by the bank itself.
Open APIs are advantageous for every member of the supply chain: think retailers, distributors, and even governments.
Every actor can benefit exponentially from creating an open platform, adding a digital means of payment to its current infrastructure to connect payments, logistics and communication in one central place.
By digitising payments, logistics and communication in one platform, processes become more manageable, and can be extended with third-party services without the need for long, or expensive development.
Open APIs are becoming key to business strategy rapidly, meaning that banks, businesses and institutions can and should start adopting this technology to stay ahead, and reap its countless benefits.
About RedCloud Technologies
Our digital marketplace connects every member of the world’s supply chains, ranging from small merchants to international manufacturing companies, and every stakeholder in-between. RedCloud’s customised offerings enable every single user to achieve higher levels of growth, security, and innovation, transforming our global economic landscape.