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4 keys for financial institutions to keep in mind about the world of open APIs

The era of open banking is serving to divide financial institutions into groups based on fundamentally different roles. One of the main defining factors for which group a financial institution belongs to is its relation to an open API: backlinked (financial institutions providing financial services “behind the scenes”), frontlinked (aggregator financial institutions serving as a frontend medium to backlinked financial services) or universal (financial institutions that act as both backlinked and frontlinked). Regardless of type of financial institution, there are 4 key things financial institutions need to keep in mind as open banking continues its inevitable march into the future:

  1. Open APIs are not a separate product; they are a channel.
  2. There is a new emphasis on speed of implementation and enhanced functionality.
  3. Microservices and the blue-green deployment scheme (parallel operation of old and new versions of microservices) provide necessary stability while also maintaining flexibility.
  4. New functionalities must be balanced in terms of speed vs. cost.

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