Diving into a Few Open Banking Platforms that are Making Waves Around the World
Open banking and open banking APIs are changing the world of fintech
The landscape of financial services have been disrupted by the FinTech industry. Traditional banks, in order to gain a competitive advantage and retain their customers for the long term have to embrace the digital technologies and solutions. The new entrants in the market are already loaded with digital capabilities and to out run them, it is crucial that the conventional players step up their game with innovative open banking features.
Because of this, most banks today are accepting new open banking initiatives and the list includes PayPal, Visa and Well Fargo. The most notable benefits:
- With APIs, banks can enhance their service offerings. APIs give them a chance to launch their latest services in a more seamless, plug and play manner.
- The overall customer engagement is improved with the help of APIs. The bank can increase its appeal in the market by meeting the changing demands of the customers and catering to their actual needs
- Along with the physical revenue, the digital revenue of the bank is increased with open bank APIs.
There are several noteworthy open banking platforms running innovative services:
Plaid is one of the most popular providers of open banking APIs to financial institutions. Enabling the institutions to offer services such as consumer payments, personal finances, business finances, lending and more, Plaid helps companies gain a competitive edge. Plaid was founded in 2012 and is based in San Francisco.
Tink is a Sweden-based open banking API provider to banks and financial institutions. Along with its interactive plug and play interface, it also offers products to deal with payment initiation, account aggregation, personal finance management products, data enrichment and more. The most important advantage of using Tink is that the API can be integrated to other apps or websites.
Solaris Bank, which is a full-fledged bank in itself, offers APIs which are licensed and certified. The financial institutions using their API interface can create personalised services for clients. Besides this, the API comes with added features like issuing vouchers, payment services for the marketplace, escrow solutions and more.
Another popular name in offering open banking APIs is Yapily. One interactive feature of Yapily is that, it enables the user to retrieve data from other financial institutions. The user can build applications using the API to connect the product with the bank account of the user. It offers unified solutions from various banks APIs and gathers cusstomer data at one place.
TrueLayer is known for providing banking aggregation API solutions. The app enables the users to gain access to customers’ account balance, credit card data and transactions using a third party interface. With the help of such facilities, online lending, PFM, investment services, robot advisors and cryptocurrencies applications become convenient to create.
Headquartered in Amsterdam, Yolt Technology Services was launched in September 2019 popularly known as YTS. YTS is the open banking arm of the financial management company Yolt. It help to conveniently manage and maintain PIS and AIS connections for top financial institutions.
Token empowers businesses with PSD-2 compliant solutions that complete payments through single API for all the banks. It offers digital and modern banking solutions without any fuss. Token has so far been able to raise more than $35 billion from venture capital and banks across the world.
Founded in the year 2013, Salt Edge helps its clients to streamline data enrichment, data exchange, and initiate payments, hassle free. Its robust financial API is power packed with latest Fintech solutions for lenders, bankers and other companies belonging to various industries. The two core functions that Salt Edge helps its clients with are – helping them with PSD2 complaint requirements and initiating payments and account information through a secure API gateway.
Research says that 90% of the bankers believe in the power of open banking and they have already accepted it with open arms. Third party providers are creating a mark by offering robust and technological solutions. These open banks safeguard financial data and the processes for better banking outcomes suited to modern-day needs.