Open banking is where financial service providers, Whether it’s a financial institution or a technology company, The user’s financial information from various financial institutions can be used conveniently and securely. The currently accepted data linking channel is an API or Application Programming Interface.
An API is a method by which software communicates with each other that automates the functionality of applications connected to the system. And when combined with the word “Open,” we get the word Open API, which allows applications to connect. Where applications or companies that provide services to the public do not have to deal with data holding companies, Open APIs are important because they can lead to open data linkage systems that enable applications. The application can easily and quickly extract data from various sources (Figure 1), so it can be said that Open API systems break down the barriers that block vast amounts of data. And facilitate the maximum utilization of information.
The open APIs provided by operators are like LEGO parts that can be assembled to create many more artifacts. Today, several emerging businesses in different industries have succeeded using Google’s Open API, such as digital devices that track wearables such as Apple Watch and Fitbit. Grab, and Lineman use location data and maps via APIs to estimate fares. Service provider location display and real-time location tracking of service providers (Figure 2) and other business platforms such as hotels, restaurants, and social media. It uses Google’s geolocation data as one of the critical features of the Service. For financial services, open cloud based corporate digital banking software can be done through multiple authentication and data request systems. One system that is widely used is OAuth 2.
The financial world is moving towards open banking, so we cannot avoid it
Looking back on the evolution of the Thai financial sector over the past 40 years (Figure 4), it can be seen that technology is a critical factor in causing change and development in various areas that unlock financial constraints.
- Installation of leased lines (Leased line)and banking and financial services app development allow banks to provide services through ATMs that have been in use since the 1980s. A leased line system is a critical back-end technology that allows banks to send data between branches quickly and at a low cost. The bank can centralize the information of customers who have transacted with different components in a central location to deliver the latest and complete news to the customer touchpoint immediately, enabling customers to conduct transactions at various bank branches has adjusted the procedures for providing certain types of financial services, such as credit approval from the original at the discretion of each chapter Later moved to the central area Make the bank’s operations more standardized and transparent. This technology is therefore considered a transformation (Disrupt) of the process of branches in a manner. “People are different” (Stand-alone). However, financial services still have a high cost. Some financial transactions require time to be processed. And transferring money between banks is not convenient. This must be done through a clearing system; for example, a check that enters a provincial branch takes up to 7 days to be deposited into a customer’s account.
- Internet Banking and Mobile Banking ApplicationsThe first electronic service started in 2003, which reduced costs for the bank. Significantly, it also increases the service channel for the bank’s customers. This online channel can support more customer service at the exact cost (Scalable), which is more efficient than Low code ISV Banking and financial services through a bank branch. In addition, online channels allow customers to conduct financial transactions on their own. Without time constraints. Until smartphones became widespread in the 2010s, banks developed mobile banking applications that enabled customers to conveniently complete transactions anywhere through their mobile phones. In addition, the internet and cloud systems have made it easier for new service providers, especially technology companies, to enter the financial business, causing disruption. More Information Visit this site: f95zone
