API management quickly becomes mission-critical for financial institutions to accelerate their digital transformation, i.e. ensuring internal efficiency and scalability, while growing the digital sales interface. Leveraging best-of-breed technology providers is often the most efficient way forward for most financial institutions: A bank operating in the EMEA region leveraged Kong’s platform to digitise one of their loan products, which decreased the timespan to get a loan quote down from 6 weeks to 15 minutes. The bank highlighted: “This is really making a difference. Especially in these times, where companies need quick loans to survive. We can automate the process and quickly help out.”
The market-leading financial services providers of tomorrow leverage technology as a key competitive advantage and enabler, rather than a cost centre. Digital transformation is about re-defining the end-customer experience, enabled, not defined, by technology. It is about pioneering new products and business models, as new technologies create new possibilities across the entire infrastructure stack. It all starts with a coherent digital business strategy, evolved capabilities and cultures as well as new technology use cases in high-impact/low-risk business areas.
In order to truly seize the emerging opportunities of API-driven banking, it all starts with a clear vision and strategy. The strategy phase should clarify key questions, such as:
- What’s the core value proposition of our API offering? Are we acting as a provider, marketplace, aggregator or platform?
- What kind of capabilities and data will be provided?
- Who are the different types of consumers and end-users for our offerings, beyond developers? What are their needs and what do we enable them to do?
- What business model and monetisation plan is the right one to start with?
- What governance, risk and compliance aspects should be considered?
The open banking canvas offers a simple framework to organise initial ideas about such considerations.
Culture and capabilities
Once the strategic direction is clear, it is critical to evaluate whether the prevailing internal capabilities and cultures are ready for API-driven banking. While new technologies offer the infrastructure to increase efficiencies, internal teams usually need to evolve cross-disciplinary ways of working and mind-sets in order to be able to truly leverage new business opportunities. This begins with bringing tech and business stakeholders together and to be open to explore new digital business models.
Digital banking would be impossible without APIs. Internally, they enable faster integration and an efficient utilisation of capabilities. Externally, an API is way more than just a data gateway. While financial institutions have been implementing API offerings mostly internally or to comply with open banking regulations, they increasingly leverage APIs as a product and business asset. That’s why upgrading to modern technology infrastructure and integrating best-of-breed fintech solutions is mission critical for making financial services providers future-proof. Instead of upgrading systems wholesale in overly complex migration events, it’s standard practice today to quickly deploy new technologies on a modular basis.
Kong x Ross Republic
In order to truly leverage the business opportunities of open finance, financial services providers rely on developing unique strategies for utilising APIs as business assets. At Ross Republic, we have supported the transformation of top-tier banks and enabled fintech challengers to develop new markets. As finance is a highly regulated industry, it’s critical to think forward about governing data access, controlling APIs and managing services properly, which is why we team up with Kong who offers leading technology solutions in this space. The combination of modern strategy consulting and technology delivery is a unique combination that helps financial services providers to accelerate digital transformation.
Ewgeni of Kong continues:
“Kong is working with the most sophisticated and demanding financial services and insurance companies globally by providing state of the art technology for service and cloud connectivity, while relying on strategy consulting and service integration partners either for the consulting of a cutting-edge digital business strategy or a modern approach towards a technical implementation.”
Get in touch with us now to get an initial consultation about how to leverage opportunities in open finance.
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