Regulations, evolving customer demands, and increased competition from FinTechs are pushing Banking and Financial Services enterprises (BFS) to reimagine their business models and develop a strong digital strategy. Further, as BFS enterprises move forward in their journey of digital transformation, they need to develop an ecosystem in which multiple third-party providers offer products and services to customers.
Application Programming Interface (APIs) can help solve many of the above challenges that BFS enterprises face. APIs allow businesses to securely share information with third-parties, develop innovative products & services, decouple legacy systems, and provide enhanced customer experience.
In this research, we explain the definition and functioning of API and explore the evolving banking API ecosystem. Using Everest Group’s proprietary assessment, we also analyze the state of API adoption and open banking initiatives of 13 leading BFS firms across Europe, the United Kingdom, and the United States.
Open banking is defined as exposing of data and services by banks to third-parties and customers via APIs. Regulations, evolving customer demands, and market pressures including increased competition from FinTechs are pushing Banking and Financial…
