The features of open banking architecture
Posted by Lisa Williams on August 27th, 2019
Open banking opens the path to innovative products and services that could support customers in small and medium-sized enterprises. It gives a comprehensive insight into customers’ accounts and also helps in discovering new and modern ways to make the most out of the available capital. It includes financial apps and websites, where one gets the opportunity to pick any product and service that they desire.
The solutions in banking institutions keep varying
The layout and design in open banking architecture can be a bit complicated and challenging, as it differs from one institution to another. The factors that affect this architecture are expenses, vendor products and other influential factors. Adopting these solutions increases the charm of banking institutions and enables them to meet the changing demands of existing customers, as well as attract new customers.
The notable features of such an architecture
- If someone uses online or mobile banking, then such an individual can also use open banking.
- It can act as a unique medium to increase consumer engagement and serve the customer's needs in a safe, quick and future proof way.
- The OBS considers the following sections of data to be under its scope: client transaction data, customer reference information, aggregated data and raw commercial data.
- It holds an API based design, based on relevant security by a third party and includes the business process and data components.
- It supports the joint venture of developers and testers, thus promoting DevOps.
- It supports a high level of data coordination and prepares a data report.
- The end aim is that every patron’s click, review and choice will drive an analytics instilled interaction between the bank and the customer
The list of advantages of this architecture
- An individual using it gets a precise understanding of the finances as it provides all banking services in one place.
- With open banking solution paying bills or performing any other purchase is quick, easy and direct.
- It helps in serving customers better and also helps in building a good relationship between banks and account holders.
- Embracing open banking not only heightens the bank’s charm but also assists customers in getting hold of their financial data in a unique way. This can produce brand loyalty among the users.
For financial service providers, open banking solutions are not lesser than any valuable asset as they allow them to heighten their services, enhance customer engagement and create modern revenue channels.