By: Todd Akin, Manager, Product Integration
Digital banking, whether it be via mobile phone, tablet or personal computer, is as now as ubiquitous as the automobile. The importance of online access to personal financial information became top of mind during the pandemic, leading to an increasing shift in adoption as consumers realize the benefits and want increasingly more capabilities. Like the growth of streaming music and movies, the digital banking floodgate has been opened and there is no turning back.
Apple, Google and Amazon experiences have set a high bar for online user experience — meaning that your customers are expecting a comparable online experience with your financial institution. To stay competitive among other financial institutions and fintechs, your financial institution needs to offer innovative digital solutions — with the immediacy, convenience, personalization and frictionless experience that today’s consumers expect. One way to elevate your financial institution’s digital offerings to meet these demands is by taking advantage of application program interfaces (APIs).
An API provides a developer the capability to integrate with a variety of applications, service providers, fintechs and more to create a customized, seamless interface that can put real-time information into the hands of the user. For example, in a mobile application, adding in real-time details on available balance, recent and pending transactions, card control functions and alerts will put a lot of control in a user’s hands. APIs drive access to live data, alerts and the ability to control card functionality, such as limiting where a purchase can be made.
The market has seen many changes in the digital banking vendor space in the last five to ten years, ranging from acquisitions of established providers to startups and fintechs with specific niches. Growth and capabilities continue to expand as vendors up their game, form stronger alliances with clients and other fintechs, and offer modern competitive interfaces and products that are now required by the user base. We are seeing more financial institutions take on larger roles in how their vendors’ products evolve – and have even joined in the development effort, with many digital providers offering custom development options.
If you are looking to expand your digital banking capabilities to drive your innovation initiatives, address client feedback and remain competitive, consider partnering with a fintech, like Primax, that supports API integration.
However, make sure to do your research, as not all vendors offer the same capabilities. Here are some questions to consider when looking for a digital provider to help your organization optimize APIs:
- Integration: What is the breadth of integration the digital provider has with your chosen core, processors and other fintechs? With the integration capabilities, how much of the user experience will be due to real-time, or near-real-time, API-based integration — providing the user with the most current data and seamless interface? No one wants to see outdated data, wait for updates or have an interface experience that is subpar to what competitors are offering. Take into account the maturity of the digital provider as well — not necessarily about how long the organization has existed — but how is that provider continuing to evolve and grow with market demands?
- Analytics: What type of analytics are available from the digital provider’s management tool or reporting system? Are those analytics that can be pulled on-demand, or reports that are created on a daily, weekly or monthly basis, or both? Leveraging data is extremely important to understand consumer trends and help identify what is working and what is not. Finding those gaps and using the data to drive enhancements can help drive customer satisfaction.
- Actionable Insights: How can the provider help you take action on insights you receive from your customers’ data? Does the platform support the ability to tie in custom product offers or ads based on consumer data? Are APIs available to support this level of integration and to what extent? The ability to personalize the experience based on the user’s activity, interests and product catalog will help meet the demands of the increasingly interactive user base.
- Customization: Some digital providers are offering their clients the capability to use APIs and other tools within a developer tool in their application. This gives clients flexibility — whether with an in-house development team or via a fintech partner with the ability to create custom components on top of the base core digital banking product within the vendor’s system. This is a growing trend we’ve seen in the last couple of years and, as of 2024, we believe this trend will continue, offering that much needed ability for a client to build and deploy rapidly without having to wait on the digital vendor to integrate with the client’s preferred partners.
Once you choose a provider, the next step will be onboarding. While the move from one platform to another can be disruptive to your customers, it does not have to be if you take the following steps:
- Let your customers know well in advance that the change is coming, including why it is happening, what it means to them, the benefits and what will happen.
- Tie in feedback from your users that helped shape the decision, adding to their acceptance and letting them know that you listen to feedback and act.
- Set up a site with a demo that customers can use to become familiar with the new interface and get comfortable with the application long before the go-live day.
- Provide details specifically outlining:
- What the user will need to do
- Where to get help
- How long service might be interrupted
- Key differences from the previous platform
- Where to find the most commonly used features
Choosing the right balance can take time, especially if your financial institution is exploring options from multiple vendors. The key is to have a plan based on your customers, innovation goals, experience needs and investment capability. Leveraging APIs may take time and requires a shift in priorities, but it is imperative to consider as consumers demand real-time capabilities.
Todd Akin manages the Primax Integration Services team and is responsible for ensuring that Primax is leading the industry with APIs and single sign-on options. The integration team works directly with Primax financial institutions and multiple third-party digital providers to architect integration solutions. Todd has a B.A. in Communications Management from SUNY New Paltz, N.Y. and a Master of Science in Organizational Leadership from Mercy College, N.Y.
