BFC Bulletins Monthly News Digest
Tags Open Banking Payments
The development of the open application programming interface (API) concept means major changes in the payment industry, with most banking customers now being interested in increasing the speed, simplicity and ease of handling payments, cash and financial products at the level of modern consumer applications and devices. For them, it does not matter much which organization provides these services – a bank or a third party.
In order to handle the need for real-time data exchange, new platforms that unite disparate systems and more fully meet the requirements of open APIs have been developed, and payment hubs (which allow for the processing of all types of payments on a single platform) have become commonplace. In order to access these services, banks must either develop an intra-bank solution or, more commonly, work with a third-party service. In either case, the revolution of open APIs is here, making customers’ lives easier and giving them greater protection via the modern security concept of openness and common access (e.g. Blockchain technology).
In short, open APIs are developing rapidly, turning into one of the fundamental elements of the future of banking as well as that of payment services. The movement of open APIs has already become irreversible, and banks need to be active in building a clearer vision of the future now or risk becoming irrelevant in the future.
