The national best-in-class financial services institution, Evolve Bank & Trust, is renowned for their Open Banking Division. Today, Evolve Bank & Trust will provide an overview for those unfamiliar and want to learn what is open banking. Through the latest technological advancements, open banking enables third-party financial organizations to provide consumer or business transactions, banking, and other financial services from banks. The information provided via open banking is typically shared via technology such as APIs (application program interfaces).
The ability to extend financial services from banks to other businesses is a huge step towards modernization of legacy financial infrastructure. Banking as a Service (BaaS) solutions allow many more innovators to enter the financial space to create user experiences that are more tailored to consumer and business needs.
Before Open Banking was conceptualized, consumers had to engage with traditional bank institutions in order to open accounts, access funds, and manage their finances. This oftentimes was done in person, which slows down the access to one’s funds. Open Banking allows these functions to be embedded into mobile apps built by innovators that want to make banking easier, faster, and more accessible. Within some of these new app experiences, end users can delve deeper than ever before into their financial behaviors. They can see statistics like transaction history, spending trends and other data around how they interact with their funds on a daily basis.
Lending has also been modernized with Open Banking. End Users have more digital-first options than ever before to find loan options that best fit their needs. Lenders are tasked with assessing the risk factor of each loan to determine whether to move forward as well as the interest rate placed on the loan. Consumers in need of a loan can also use mobile lending experiences to determine the price range they can afford to pay for everything from a new car to a new home.
Open banking features can also help businesses and consumers alike identify irregularities or odd charges that can help stop fraud and further protect the assets of customers. The sooner problems can be identified, the quicker they can be resolved.
Evolve Bank & Trust believes that open banking and BaaS solutions are the future of our financial ecosystem.
Banks, both large and small, who do not currently offer this technology should consider adopting open banking philosophies in order to better serve consumer and business end users. Today, successful banks must continue to drive technological innovation in order to appease the needs of customers in the digital age. One thing that will not change, however, is the importance of customer service in the banking industry. Evolve Bank & Trust remains committed to building strong customer relationships that ensure the retention of a customer for life.
Those interested in learning more about the foundation for financial innovation, also known as open banking, are encouraged to visit the Evolve Bank & Trust website. Click here to learn more: https://www.getevolved.com/openbanking/
