Banks should take the initiative with APIs, says iGTB’s Head of Digital, Herber de Ruijter, in the first of a series of blogs by iGTB in the lead-up to Sibos 2017.
New legislation requiring banks to share data with third-party providers through APIs comes into force in 2018, but it should be seen as an opportunity rather than a compliance burden. These data-sharing interfaces can transform bank-client relations, and banks that take this potential seriously will have a serious competitive edge over their peers.
From enhancing product offerings and cutting costs, to creating new revenue streams, the catalogue of benefits is extensive. Yet banks must also be aware of the possible pitfalls along the way – including the loss of human interaction and the risk of third-party products supplanting existing bank services.
When well- conceived and well designed, however, APIs can unlock huge benefits – revitalising the banking industry and it customer services.
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