Remember how annoying it used to be when you applied for a credit card? You’d receive some pre-qualified offer in the mail, and then call up a 1-800 number to give all your information. Then you would wait four to six weeks to find out whether you were approved.
What about the days before direct deposit, when you would manually deposit your hard-earned paycheck into your bank and hopefully the check would clear within a day or two? And we still throw the term “bankers’ hours” around to describe short workdays, but do you even remember when you couldn’t get cash out of an ATM?
Fortunately, those processes are a thing of the past. The banking industry has grown by leaps and bounds in recent years, but it can still go even further in offering better services. Open Banking introduces an entirely new banking model for customers to better manage their money and aims to help customers manage various financial needs all in one place.
Open Banking offers the next logical evolution to your banking needs as the financial industry looks to unlock loads of data to create new offerings. Financial services organizations such as Mint.com and TurboTax already can leverage personal data to expand services for customers. Besides greater control and transparency, as well as more money management tools, customers can access entirely new marketplaces for their personal financial needs.
That’s where B2B technology comes into play.
Open Banking powered by B2B integration technology takes your banking app one step further. B2B technology connects networks together, so the financial data of customers can be shared among banks, lenders, and other financial organizations. But at a time when the next breach can make your data available to the wrong people, how can customers trust that this data is being shared safely?
Organizations’ first instincts will be to throw a bunch of APIs at it. On paper, yes, APIs are integral to pushing these new banking models forward. But banks and customers demand a higher level of governance and security, and they’re not going to get it from APIs alone. Organizations will have to architect APIs that are interoperable and well-governed.
B2B technology offers the safety net that organizations need. These APIs are open in the first place because each includes very specific information, whether it be customer SLAs or compliance regulations. The difference for Open Banking initiatives, however, is that they can be secure with the right B2B layer in place.
APIs built on top of a B2B framework enable organizations to take advantage of the full capabilities of Open Banking, from high-speed data transfer to ESB integration. APIs provide the connection, but B2B integration is responsible for delivering the heavy lifting of the information exchange.
Instead of worrying about the security – or lack thereof – in an API, banks can spend time focusing on customers and helping them manage their finances. Developers leveraging a strong B2B foundation will be able to strengthen any potential security risks that an Open Banking API might present while also enabling real-time integration.
The Cleo Integration Suite offers advanced B2B integration on a single platform to enable the critical data exchanges required by Open Banking. Open Banking might be its infancy, but powered by B2B technology from an innovative integration vendor like Cleo, these financial services initiatives will grow up very quickly.