Retail and commercial banking customers are rapidly changing the ways that they interact with banks. Consumer needs are evolving to match a more technology enabled and less branch-oriented way of money-dealing. Individuals generally use internet, mobile and even watch banking for their core needs. Various Fintech applications are commonly used to access individual accounts, pay bills, receive payments, and transfer cash.
Many local and regional banks and credit unions have dated websites that do not support mobile banking. Watch banking functionality will lag further behind mobile banking. Currently supported interfaces are generally outdated and/or fall short of standing out. Additionally, many banks are not ready for Open Banking, which would allow Fintechs controlled access to their systems. At this time, they are screen-scraped for data and will ultimately forfeit market share to Banks that are Fintech and user friendly and security seems to be either overbearing or non-existent.
The answer for the majority of these banks will be a complete Open Banking Strategy for Open APIs such has FDX – the Financial Data Exchange and custom APIs for Open Banking Integration. Unfortunately, most banks are unaware that these shortfalls will forfeit them market share. People will use the bank that is easiest for them and that no longer means the bank closest to them in their neighborhood. Many consumers are comfortable with an ATM machine for any cash needs they have and really have no desire to walk into a branch for other needs. IT systems need to be the differentiator for these banks now since location is no-longer a valued benefit. Banks will also need to strike a balance between “lock-down security”, forcing consumers to authenticate over and over again, and real measures against internet attacks, SQL injections and mass screen scraping.
Enterprise Engineering, Inc (EEI),
has been working with Banks for over 20 years for Fintech access and certifying secure API access to their core banking systems. EEI’s Open Banking Readiness Assessments
cover five key areas of focus for a bank:
1. Assessment of the current state of API capabilities and client facing systems
2. Security and Data Access Methods
3. API certification of standards based APIs in comparison to proprietary bank APIs
4. Testing and Automation of key systems
5. Managed Services to run and monitor critical platforms
EEI has certified more than 250 Banks, Credit Unions and Wealth Managers for Open Banking in the last 10 years. Our clients find out exactly where their systems stack-up against their peers, learn how to securely grant access to their systems and work with Fintechs on a large-scale basis. The EEI Open Banking Readiness Assessment gives banks a roadmap to follow for Open Banking and makes an immediate impact on your security measures. This will allow them to leap their competitors, retain and more importantly grow accounts, assets and create a “stickiness factor” for their end users. The assessment also gives insight on all of the Fintechs in their sector and how to track and manage their access, knowing which Fintechs to partner with, embrace, block or even invest in; is a powerful weapon for the growth of a bank or credit union.
About the Author:
William Trapani has been selling enterprise scale banking solutions and architectures for over 20 years. Based in New York he has worked with the top banks and wealth managers throughout his career. He is an accomplished presenter and technology host, having presented to live audiences of over 5000 people. William has become a regular to webinars on Banking and Security topics.
About Enterprise Engineering, Inc (EEI):
EEI has been a trusted advisor to the financial services industry since 1995. From the outset EEI has been successfully guiding our clients through the challenges of digital transformation and Open Banking. We advise, build and improve upon leading-edge solutions that offer secure, competitive advantages to our customers. EEI was recently named “20 Most Promising Big Data Solutions” by CIO Review and “Best Global Financial Solutions Provider of the Year” by M&A Today: Global Awards. We were also named a “Leading Provider of Financial Services Technology Solutions” by Wealth and Finance. www.joineei.com