bank modernization

Open Banking Ecosystem: Why do Banks with APIs Captivate More Users

Open Banking Ecosystem: Why do Banks with APIs Captivate More Users

Open Banking Ecosystem: Why do Banks with APIs Captivate More Users 1300 972 Exist Software Labs

A PLACE WHERE YOU CAN SEE EVERYTHING – This is the first thought that comes to my mind about Mobile Internet Banking. Banks who adapt in digital banking are being advanced in providing quality banking experience by tailoring their offerings to their customers because of open banking.

While top banks are enjoying this kind of flexible and extensive Open-Banking, the majority are still stuck with the traditional way of banking. Taking leverage of this new technology will expedite the growth of Banks and Financial Institutions.

What is Open Banking?

It is a banking technology model that gives access to users to securely allow their data that they can share with the bank’s third parties (of course, with their consent)  to offer a personalized and seamless experience.

This banking model creates a more competitive environment by opening up new opportunities for collaboration between banks, fintech, and other financial institutions. In the Philippines, it is still in its early stages, but it is quickly gaining traction as a new and innovative way of providing financial services to customers.

The implementation of open banking in the Philippines requires collaboration between different stakeholders, such as regulators, banks, fintech, and customers. The Bangko Sentral ng Pilipinas (BSP), the country’s central bank, has created guidelines and regulations that encourage the adoption of open banking in the Philippines. These guidelines include the use of APIs (Application Programming Interfaces) to facilitate the sharing of data between banks and third-party providers.

To encapsulate how it works, Banks and Fintech have privacy policy guidelines when we are installing an app or registering to their website. This means that they designed data safety conditions that comply with regulators and the government to protect every customer’s data. 

Open Banking Ecosystem: Why do Banks with APIs Captivate More Users

Open banking offers several benefits to both banks and customers. Banks can leverage open banking to improve the customer experience by offering new and innovative financial products and services. For example, it enables banks to provide personalized financial advice, digital payment solutions, and other services that meet the needs and expectations of their customers.

Moreover, by partnering with fintech and other third-party providers, banks can access new technologies and expertise that can enhance their offerings.

By working together, regulators, banks, fintech, and customers can create a more competitive and transparent financial services market that benefits everyone. For banks still not adapting to this technology, it is important to stay informed about open banking and embrace this new model to stay ahead of the competition and provide better services to customers.

Executives must understand the importance of open banking and support its implementation and growth. IT experts, on the other hand, must ensure that the necessary technology and infrastructure are in place to help open banking securely and efficiently.

What are the Benefits of Open Banking?

  1. Improving competition: It allows third-party providers to offer financial services, increasing competition in the market and providing customers with more options.
  2. Enhancing innovation: It enables the development of new financial products and services through tailored promotional offerings, loyalty rewards, and other marketing advertisements based on customers’ interests, digital behavior, etc. These kinds of personalized user experiences are always with the consent of users by checking the terms and conditions when they sign up for an account. Additionally, the terms and conditions of the banks are always relying on the government’s Data-Privacy Act.
  3. Improving financial inclusion: It can help reach underserved or unbanked populations by enabling new providers to enter the market and offer financial services.
  4. Enhancing security: It can help improve the security of financial transactions by using modern technologies and standards, such as strong customer authentication.

How Should banks respond to Open Banking? Do they need to adapt?

Banks need to respond to open banking and adapt to this new model. Open banking represents a shift in the traditional banking industry and offers both challenges and opportunities for financial institutions. 

To successfully respond to open banking, banks need to adopt an open and collaborative approach. This means working with fintech, third-party providers, and other stakeholders to develop new financial products and services that meet customer needs and expectations. In order to do this, they need a Digital Banking Solutions Provider that will enable them to apply it accordingly. The effect? Banks can leverage open banking to offer new services, such as personalized financial advice and digital payment solutions, that can improve the overall customer experience.

Additionally, banks must prioritize security and data protection in their initiatives. This includes implementing robust security measures and data management processes to ensure the protection of customer data and financial information.

In short, banks need to respond by embracing it as a valuable opportunity to improve their offerings, better serve their customers, and stay competitive in the market. By adapting to open banking, banks can ensure their continued success in the rapidly evolving financial services industry.

Exist Software Labs, Inc. offers digital banking solutions for banks and financial institutions that want to modernize their systems to better serve their customers and make their banking seamless and personalized. Our solutions include but are not limited to Mobile Internet Banking, Accounts Onboarding/Enrollment, Loans Management System, & Corporate Internet Banking. 

Contact Us Today to Learn More about Digital Banking!

Start your Digital Banking journey that is secure, scalable, connected, cloud-ready & flexible.

Digital Banking Technologies that will arise in 2023

Digital Banking in 2023 – What to Expect

Digital Banking in 2023 – What to Expect 650 486 Exist Software Labs

Technology became unwavering as it conquered many battles in the last two years when the pandemic became a primary problem in different business sectors across the whole world. While sudden changes broke their business plans, this too established adapting technology, especially in the banking and financial services industry.

We all know that 2022 was an exciting year for the banking industry since it opened a lot of opportunities for businesses. But this 2023, banks and financial institutions will continue to evolve with the new market trends that would create next-generation digital banking solutions and meet their customer needs when it comes to seamless operations, online transactions, and 24/7 banking. 

Here are the technologies we need to look at when it comes to Digital Banking this 2023:

1. Cloud-Based Banking

Cloud is one of the biggest trends in the post-pandemic era because of the advantages when it comes to security and online access to data. At first, chief officers and executives were skeptical about having a cloud-based banking platform, particularly on security and information sensitivity but realizing that cloud has a secure framework and could give financial firms endless scalability and access to the internet, this technology would get to expand.

As end-users embrace digitalization, banks must stay relevant and innovate services that give convenience and personalization to their customers. Cloud-based banking is a powerful technology that will truly empower banks and financial institutions this 2023 and beyond.

2. Identity Verification & Fraud Prevention

According to the BSP’s Inclusive Finance article, it is a state wherein there is effective access to a wide range of financial services for all, especially the vulnerable sectors. In line with this, digital customer onboarding should be a primary feature in the Banking applications to enroll their users online easily. However, banks are prone to identity theft and fraudsters that’s why they need to have a reliable eKYC solution and identity proofing.

Jumio is an end-to-end eKYC Platform that helps banks to have automated identity proofing, eKYC, and Transaction Monitoring. From onboarding to monitoring, they build trust based on your terms.

  • Jumio is one of the technology partners of Exist Software Labs, Inc. (Learn More)

3. Always-On Financial Observability & Monitoring

While our human bodies cannot be awake 24/7 and need to take rest, banks’ operational systems, data warehouses, third-party applications, etc., should be observed in real-time without a blink of an eye. Banks are handling tons of data per minute like transactions, financial records, analytics, and reporting tools. Good thing, Real-Time Observability Technology’s primary duty in a bank’s system is to identify critical issues, diagnose and resolve them to prevent outage & fix infrastructure before it creates an impact on the business.

4. Open Banking APIs

The Banking and Financial Services landscape continues to evolve as they work with other companies in creating a convenient and innovative financial ecosystem and part of it is acquiring an Open Banking API (Application Programming Interface) Integration. While some of the banks don’t want this kind of development because of information sharing, this technology benefited the end-users to access new helpful applications to make it an omnichannel digital banking platform inside their mobile apps like investments, cryptocurrency, savings plans, & insurance.

5. Embedded Finance (BNPL)

Banks & Financial Services are more rapid than ever since companies considered cashless and online transactions. Embedded Finance is an integration of different financial services to businesses in one application without the need to transfer them to other branches or other landing pages (when online). To encapsulate this, you can see payments, investments, lending & insurance to a real estate application or to a health care provider’s application. (See the infographic below)

Embedded Finance Illustration

According to Mckinsey’s Global Payment Reports, Embedded Finance reached $20 Million in revenue in the US alone. Could you imagine how impactful it was in the world? That’s why most companies in APAC are now getting this technology to really help them to grow their revenue.

6. Blockchain

Blockchain technology is slowly but surely making its impact on banks and financial services by proving that it is the most prominent technology this decade. Most of us heard this word but we are not yet seemingly seeing its effect. Blockchain is expected to revolutionize the banking industry and other businesses like retail, healthcare, and more. 

Blockchain will be expected to accelerate international transfers and monetary transactions faster, more cost-effective, and more secure. Right now, when we are doing fund transfer from one country to another, our transactions can take multiple hours with a processing fee before it gets to the recipient. Blockchain, on the other hand, can empower these parts to make it faster and simpler for more efficient transactions. Some fintech in the PH is using their digital wallet to cash in, save, and invest in a crypto wallet.

There are a lot of features and advantages we can look forward to with blockchain technology like reducing the cost of the BFS industry, reducing human errors by automating record transactions, more efficient banking, and more!

Conclusion:

As we can see, there are so many technological innovations that can be customized based on the bank’s and financial institutions’ offerings. They can utilize it to provide seamless, omnichannel, and powerful banking. However, this can only be possible by tapping into an IT solutions provider or Software developer that can truly help you in your digital transformation this 2023. Exist Software Labs, Inc. is one of the technology innovators in the Philippines with over 2 decades of experience in bringing the value of technology to humans.

Contact Us Today to Learn More about Digital Baking!

Start your Digital Banking journey that is secure, scalable, connected, cloud-ready & flexible.

The Next Big Thing in Internet Banking - Exist Software Labs, Java, Java Developer Philippines

The Next Big Thing in Internet Banking 2022

The Next Big Thing in Internet Banking 2022 768 487 Exist Software Labs

What is the “Next Big Thing in Internet Banking?”

Everyone was challenged on how to cope up in the corporate world because of the worldwide effect of COVID-19. Businesses that do their operations physically were forced to close their business and others were bankrupted because of the lockdown. But more than the negative effects of COVID-19, it also opened many entrepreneurs’ eyes to invest in digitalization or, let’s say, digital transformation.

So what is the correlation of this in the banking industry? Of course, banks were also affected by the pandemic, and a lot of users need to do banking regularly (transferring funds, depositing money, loans, and paying bills). The question is, what is the “Next Big Thing in Internet Banking?”

Surprisingly, banks have adapted to this technological era by accelerating their operations online. As customers go online, many banks have pivoted their strategies to be present where their customers are. Here is the Next Big Thing in Internet Banking.

1. Cashless Transactions

The rise of online shopping gives way to the API tools in using payment gateways to provide users with seamless transactions like capturing a QR Code, saving your debit/credit card in your online shopping app or platform, and giving your ATM card for transactions. For consumers, a lot of payment options and methods would be great! Many people are using more cashless transactions in groceries, shopping, and other financial transactions. This makes the users  more comfortable with the safety and security of their homes. 

Moreover, cashless transactions let them have thinner wallets & prevent them from having heavy coins! 

2. From Brick & Mortar to Click and Mortar

While we are still on lockdown, some banks decline their operations physically. The relevance of Brick and Mortars are not the same as before since we are forwarding into the new normal. The use of digital services via mobile, computer, and tablet is now the trend in doing banking. Even banks are operating digital-only (Neobanks) too! Today, we can do banking, doing our financial errands at the click of a button without going outside of our homes!

From Brick & Mortar to Click and Mortar, everything in internet banking is possible today.

3. Micropersonalized Banking

Have you experienced in the online world that some applications or websites know you as if they are talking to you personally? Like you are the top priority? Well, that is not impossible because of Big Data and Analytics. This AI-driven analytics gives a huge contribution in treating customers right – even virtually! Banks can now offer the users loan or borrow money at the right moment that they need it, dynamic suggestions of products and services, detailed offerings, budget and purchase recommendations (based on your web behavior), and promos around their nearby location!

Micropersonalized banking is customer personalization. If we can translate “the customer is always right in the digital era, then that is analyzing their behavior and offering what is appropriate.

There will be more innovations to come in the future, and the opportunity for internet banking is bright and exciting. As part of the solution, let’s expect higher expectations and demand from customers, be agile in future-thinkers, giving them a seamless process of banking and satisfaction.

Exist Software Labs, Inc and Internet Banking

Exist Digital Banking and Fintech have already streamlined the solutions-building process by creating a foundational banking app that can easily integrate with core banking systems using a standard set of integration connectors to equip banks with capabilities to rapidly shift and compete in the digital economy.

For those in need of a modern and agile digital banking solution, Exist offers a faster and more flexible way for banks to create and implement a solution that can be tailored to their own unique needs which can deliver a seamless customer experience across any device.

Exist Software Labs, Inc. is committed to extending our assistance to several banks with their Digital Onboarding requirements. We have been in the business for 20 years, and the mission to enable corporations to go on digital and have a competitive advantage in this fast-changing world is at our core. Go where the possibilities are boundless!

Digital Banking: Expectation VS Reality, Java, Java Developer Philippines

Digital Banking 2022: Expectation VS Reality

Digital Banking 2022: Expectation VS Reality 768 487 Exist Software Labs

With the rise of technology, a huge number of businesses are also transitioning from traditional to digital – including banks and other financial institutions. In this modern era of technology, what are the expectations and reality of Digital Banking?

According to Bangko Sentral ng Pilipinas, consumers now adapt to use digital payments and prefer to use online transactions because it is safe and convenient.

“New adopters have experienced first-hand the advantages of going digital. Their positive experiences are expected to create a ripple effect and to promote the wider use of digital payments” the BSP explained.

COVID-19 also pushed us to use digital platforms due to health and safety concerns. Payments and transferring money are all seamless because everything is now online. It bridges family’s finances in paying bills and sending funds, shopping online, and other financial transactions. Social Distancing is not a problem at all!

EXPECTATION: You can create an online bank account — Anytime, Anywhere!

REALITY: Yes, but there is an enrollment process for verification purposes.

Internet Banking helped many users to create an online bank account. As much as every bank wants to do it, your security is also their responsibility and concern which is why they are including our personal information like full name, birthday, email address, and phone number to verify and match the details on their data. Furthermore, digital banking activation process will likely need our personal details for verification. With that said, if there’s no wrong answer and all the details are legitimate, you can now have your online bank account!

EXPECTATION: 100% Secured Banking Process

REALITY: Digital Banking is 100% Secured and Simplified its User’s Experience

Thanks to new technology, banks and users can now ensure that everything is secured by the use of multiple security processes before opening their accounts or transferring funds. These are the types of user verification or authentication that was created before performing transactions:

  • Two-Factor Authentication is a security system requiring a clear identification to proceed or access a specific command.
  • One-Time Password (OTP) – digit security code that is only valid for a single login session or transaction. It is a randomly generated code that is impossible to guess and reduces the risk of hacking an account.
  • Email Verification Code – is like a One-Time Password but sometimes comes with a combination of numbers and letters. The code will be sent through the account’s registered email to fully check if the login is legitimate.

EXPECTATION: Users Expect that banks are always there for them

REALITY: Digital Banking is Omnipresent

Omnipresence means “widely present” at all times. With that being said, Yes, there’s a limitation in banks where they cannot always reply fastly to user’s concerns, but users can contact them directly with different channels! The reality is, Banks are thinking about their customers. They are there where their customers are – even online!

With the fast-paced environment, traditional banks must learn and adapt to the new normal. Huge numbers of users are now comfortable with digitalization and financial institutions have to bring convenience too with their customers.

Exist Software Labs, Inc and Digital Banking

Exist Digital Banking and Fintech have already streamlined the solutions-building process by creating a foundational banking app that can easily integrate with core banking systems using a standard set of integration connectors to equip banks with capabilities to rapidly shift and compete in the digital economy.

For those in need of a modern and agile digital banking solution, Exist offers a faster and more flexible way for banks to create and implement a solution that can be tailored to their own unique needs which can deliver a seamless customer experience across any device.

What do you think? Does digital banking meet your expectations or exceed them?

Exist Software Labs, Inc. is committed to extending our assistance to several banks with their Digital Onboarding requirements. We have been in the business for 20 years, and the mission to enable corporations to go on digital and have a competitive advantage in this fast-changing world is at our core. Go where the possibilities are boundless!