# Moving to Digital Banking – with API first Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-08-22 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: How to Successfully Navigate the Challenges of Digital Meta Description: Discover how traditional financial institutions can leverage digital channels and omni-channel approaches for a customer-centric and innovative experience. URL: https://financedigest.com/moving-to-digital-banking-with-api-firsthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/earth-globefyyubqso-1736844561622-compressed.jpg) **By Bruno Cambounet, VP Banking and Financial Services at** [**Axway**](http://www.axway.com) Digital business presents very real challenges _and_ opportunities for traditional financial services organisations, but where to start? The obvious place is digital channels and an omni-channel approach; breaking traditional channel silos whilst also ensuring security and data confidentiality. Getting to know and use existing systems in the context of a new landscape also presents real opportunity but,alongside this organisations must deliver innovative services that meet customer demand – rather than pushing traditional services that are no longer relevant.In fact more than that, in digital business, customer centricity has [come of age](https://www.financedigest.com/constructive-digitization-to-let-the-tissue-diagnostic-market-come-of-age.html "Constructive digitization to let the Tissue Diagnostic Market come of age") and it’s no longer a nice to have. To be a true [digital leader](https://www.financedigest.com/digital-trends-for-banking-leaders-looking-to-compete-in-2022.html "Digital trends for banking leaders looking to compete in 2022"), it’s all about bringing it all together and leading with innovation. Let’s look at what this means in practice. How about a personalised loan, on the fly? Long standing customer Anna, is visiting an area with a view to [buying a house; she’s looking to make her first property purchase](https://www.financedigest.com/buying-a-house-for-the-first-time.html "Buying a house for the first time"). As she wanders down a much loved road and finds a [house for sale](https://www.financedigest.com/top-auction-houses-cancel-russian-art-sales-in-london.html "Top auction houses cancel Russian art sales in London"), she asks herself, ‘what would that cost me? Is that dream possible?’  Anna doesn’t want to visit the web and identify which product might work for her or make an appointment in a faraway branch, she wants to know now. If her trusted bank gets the contextual information such as the local real-estate cost at that moment, they can cross reference this with all the information about Anna’s income and spending habits and make a fit-for-purpose personalised offer before she [reaches the end](https://www.financedigest.com/global-tool-holders-market-is-anticipated-to-reach-over-us-1604-5-mn-by-the-end-of-the-projected-period-growing-at-a-cagr-of-5-1-fmi.html "Global Tool Holders Market is anticipated to reach over US$ 1,604.5 Mn by the end of the projected period, growing at a CAGR of 5.1%: FMI") of the road. With this ‘simple’case, what are we learning? **Nurture all channels** The first imperative is an omni-channel strategy. Today customer interactions must happen consistently across a wide variety of channels, each with their own distinctive nuances. For traditional banks there are five major channels: mobile devices, website, call centres, physical branches and ATMs. Customer interactions can start anywhere.True, today, many start on a mobile app, such as in the above case, but customers may move to the main web site or visit a branch to continue or complete the process.To ensure that customer interactions are effective, generating positive business outcomes, all channels [must be available and offer integrated and consistent service](https://www.financedigest.com/as-saas-grows-financial-services-must-rethink-their-security-approach.html "As SaaS grows, financial services must rethink their security approach") levels.Channels need to be seamless – an interaction through one channel [needs to be instantly](https://www.financedigest.com/instant-payments-and-the-need-for-standardization.html "Instant payments and the need for standardization") visible and accessible in all others.With an API strategy [banks can create the necessary points of openness](https://www.financedigest.com/open-finance-and-smart-ecosystems-wont-wait-for-banks.html "Open Finance and Smart Ecosystems Won’t Wait for Banks"), ensuring consistency across channels, whilst also fulfilling security and compliance requirements. But omni-channel is just that – a channel, it’s not a service itself, it’s a beginning. **Use what you have** For traditional Bank and Financial Services players, the foundation of a digital [business strategy](https://www.financedigest.com/albumin-market-in-depth-analysis-business-strategies-and-growth-rate.html "Albumin Market In-depth Analysis, Business Strategies, and Growth Rate") must be to leverage existing systems and use them in a totally new way. Success will involve securely exposing a multitude of [back office](https://www.financedigest.com/rouzbeh-pirouz-why-disabled-employees-should-not-be-forced-to-go-back-to-the-office.html "Rouzbeh Pirouz Why disabled employees should not be forced to go back to the office") and core systems to new applications to deliver value, service and an improved experience for the end customer. From the technical perspective APIs are the best way to do this because they enable this leverage whilst also managing access to [back end](https://www.financedigest.com/decision-to-end-ecb-reinvestments-takes-back-seat-to-rate-hikes-sources-say.html "Decision to end ECB reinvestments takes back seat to rate hikes, sources say") system and information. **Always [walk in your customers’](https://www.financedigest.com/walk-in-coolers-and-freezers-market-preference-for-customized-and-smart-machines-growing.html "Walk-in Coolers and Freezers Market: Preference for Customized and Smart Machines Growing") shoes** Today, when you walk into a bank or visit the website,you’re greeted with a portfolio of quite separate services: account management; loans;shareholdings; [wealth management](https://www.financedigest.com/annual-survey-of-wealth-managers-2022.html "Annual Survey of Wealth Managers 2022"), the list goes on. The problem is, the focus is on products, not on customer needs – [banks still push](https://www.financedigest.com/central-banks-ease-off-on-rate-hike-push-in-october.html "Central banks ease off on rate hike push in October") their offer.  But digital [business is provoking an important](https://www.financedigest.com/the-importance-of-upskilling-to-prepare-for-business-automation.html "The importance of upskilling to prepare for business automation") shift: it’s driving the banks to start helping customers with their financial journey, to achieve their goals – rather than peddling a list of financial products they may not want, need or understand. To operate in this new way Bank and Financial Services players must understand the customer at a particular moment in their life. They must predict, or in the worst case,respond to,customer needs and propose tailored [services at the right time](https://www.financedigest.com/financial-services-and-sustainability-the-time-is-now.html "Financial services and sustainability: The time is now"), through the right channel. The good news is banks have all this information and can utilise APIs to interact with data [analytics applications to make accurate customer want and need predictions](https://www.financedigest.com/transportation-predictive-analytics-and-simulation-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2027.html "Transportation Predictive Analytics And Simulation Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2027") a reality. **Innovation, innovation, innovation.** Traditional players will achieve real [innovation by proactively engaging with a wide range of external ecosystems](https://www.financedigest.com/open-finance-can-help-unlock-innovation-across-the-financial-ecosystem.html "Open Finance can help unlock innovation across the financial ecosystem").There’s a plethora of app based services, partnerships to capitalise on, and a whole host of other relationships outside their internal operations. Working in a more open and creative way, with services you may not initially expect to be relevant, actually leads to the development of entirely new services that bring added [value to the end](https://www.financedigest.com/automotive-hardware-market-is-projected-to-reach-a-market-value-in-excess-of-us-100-bn-by-2029-end.html "Automotive Hardware Market is projected to reach a market value in excess of US$ 100 Bn by 2029 end") customer. Combining data, information and content from [various elementary services](https://www.financedigest.com/research-report-on-food-service-equipment-market-for-exploring-various-growth-dimensions.html "Research Report on Food Service Equipment Market for Exploring Various Growth Dimensions") with their own in real time creates something totally new:a Mashup. In this new landscape traditional [services need](https://www.financedigest.com/financial-services-need-a-digital-transformation.html "Financial services need a digital transformation") to be available, but not pushed in the same old way. APIs play a big part in [digital because they enable the innovation](https://www.financedigest.com/the-digital-pathology-systems-market-to-get-digitally-innovative.html "The Digital Pathology Systems Market to get digitally innovative") layer; the integration between internal bank information and the broader customer ecosystem. **Bring it all together, the Mashup.** In the above example, through embracing an API strategy and management to create the right interactions Anna’s bank can answer her needs before she reaches the end of the road. The bank interface requests authentication credentials as Anna signs in on her smartphone. Anna’s also prompted to enable location services on her device. Now her bank can leverage all the knowledge they need. From their back office systems, links are established between loan services data, risk and screening apps and external [housing market](https://www.financedigest.com/uk-housing-market-keeps-momentum-but-slowdown-ahead-halifax.html "UK housing market keeps momentum but slowdown ahead: Halifax") data for that specific area. Within seconds Anna knows how much a [mortgage would cost her per month and she knows it’s the best offer because her bank](https://www.financedigest.com/spain-expects-to-agree-with-banks-mortgage-relief-measures-by-end-of-week.html "Spain expects to agree with banks mortgage relief measures by end of week") has considered all the variables. The bank has leveraged traditional systems. API shave enabled the bank to integrate easily, smoothly and securely, with the wider ecosystem,in real time. This is true innovation and it’s how banks must evolve,creating a [totally new service with high value](https://www.financedigest.com/global-grass-fed-beef-market-value-is-forecast-to-total-us-17-9-bn-by-2031.html "Global Grass Fed Beef Market value is forecast to total US$ 17.9 Bn by 2031") and relevance for Anna, and of course the bank. Voilà, a Mashup. **Take the lead.** In [digital business traditional Banks and Financial Services](https://www.financedigest.com/how-to-enhance-banking-services-with-digital-performance-intelligence.html "HOW TO ENHANCE BANKING SERVICES WITH DIGITAL PERFORMANCE INTELLIGENCE") players could actually have an enviable head start; leading in digital business is still there for the taking. They must leverage the wealth of data, information, customer experience and knowledge they already have, [adopt an omni-channel strategy](https://www.financedigest.com/bev-automotive-oil-filter-market-recent-industry-developments-and-growth-strategies-adopted-by-players.html "BEV Automotive Oil Filter Market: Recent Industry Developments and Growth Strategies Adopted by Players") and then engender digital openness and interactions with the wide external ecosystem. This approach will create an environment and culture that delivers true [innovation and digital leadership with a low cost](https://www.financedigest.com/cost-effective-digitized-innovation-to-drive-the-immune-thrombocytopenia-treatment-market.html "Cost-effective Digitized Innovation to drive the Immune Thrombocytopenia Treatment Market") to income ratio. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---