Replacing the pillars of banking with open banking architecture

Posted by Lisa Williams on October 30th, 2019

Technology is meant to improve the abilities of people and generate infinite possibilities about what humans can achieve. They improve the world in ways that have a tremendous effect on how things work. One can transfer funds effortlessly, from one bank account to another, via mobile banking; which is something that has been made possible thanks to the ever improving technological advancements. Here are some features that have made banking easier.

• Quick service
  Mobile banking has no confinements when it comes to the transfer of money. Mobile banking solutions offered by banks are known for making life easier for the customers. With the intelligence of smartphones, one can use apps like the camera for their banking work. One can easily click a picture of a document and send it to the concerned authorities. For example: for opening any new account, one needs to click a picture of themselves and present other required KYC documents to the concerned authority.
• One click solution
  Users can transfer funds within the bank or to another bank, can invest or exchange currencies without any delay or interruption, and can easily do banking work that used to take a lot of time and effort before.
• All time availability
  Mobile banking solutions do not intervene with the flow of business as they are available to the customer at all times. This service is open on all days of the week, including public holidays and weekends.
• Eco-friendly
  Delivering paperless bills directly into consumers’ email address, saves the cost of printing the bills on paper and the delivery expenses that are attached to it. It is also friendly for the environment as lesser paper is getting printed and utilized.
• API over core banking solutions
  Open banking architecture is the principal cause of change in the banking industry. For example, APIs in open banking solutions help the ongoing process of shifting funds from one bank account to another. The API can also watch and record consumers’ business activities and can assist in choosing the fittest financial service or product for them.
• Role in reshaping the structure of the banking sector
  Open banking is expected to enhance the customers’ banking activity in several ways like forcing banks to be more competitive, lowering the costs, providing high-grade technology and excellent customer service. Open banking organizations need banks to declare authentic and unbiased data that lets users judge their service status. This is a move towards clarity in banking activities that will provide the best customer experience.

Through records, open banking helps banks acquire an authentic picture of a consumer’s economic situation. It could also aid consumers in getting a better and clearer picture of their own economics before they take any loan.