Today’s banking and financial services industry is characterized by constant, rapid change. From a shifting competitive landscape to dramatic changes in customer expectations to evolving regulations, financial institutions must embrace adaptability and innovation to thrive.
Open technology combines rich, broad and in-depth banking functionality with advanced software, allowing financial institutions to deliver personalized services that build customer loyalty and drive growth while reducing costs and managing risks. Financial institutions that adopt these tools are unlocking innovative use cases that prioritize inclusivity, harness the power of data, and reimagine banking to meet the demands of a dynamic digital world.
Supporting commitments to inclusive and equitable banking
Financial exclusion remains a stubborn barrier to economic empowerment and prosperity. It not only inhibits individual financial growth but also impedes the wider economy. At the same time, unbanked and underbanked communities represent untapped markets with significant growth potential for financial institutions. However, due to perceptions of high risk or low profitability, traditional banking models often overlook these segments.
Open technology equips banks and other financial institutions with tools to serve the unbanked and underbanked, driving economic empowerment and community development. Robust open platforms enable financial institutions to deliver accessible financial services, from savings accounts to credit facilities, that pave the way for a more inclusive economy where everyone has the opportunity to thrive financially.
Moreover, financial institutions are facing increased pressure to conduct business ethically and responsibly. Inclusive banking helps demonstrate a financial institution’s commitment to social equity and ethical practices. It also represents a strategic business initiative: by reaching out to unbanked and underbanked segments, banks and credit unions can diversify and expand their customer bases. Open technology can help facilitate the design and delivery of products and services tailored to these account holders’ unique needs, as well as offer them at price points that balance affordability with profitability.
Enabling a responsible, data-driven approach
Open banking technology empowers financial institutions to manage, analyze, and secure vast data sets. Using state-of-the-art platforms and tools, they can combine data with expertise and experience to deliver actionable insights while maintaining ethical and compliance standards and enhancing customer experiences. With unbiased data, they can make more informed decisions that sustain long-term growth and increase stability.
When it comes to responsible data practices, security needs to be built-in - not added-on. As gatekeepers of sensitive financial data, financial institutions are also subject to a complex and ever-growing web of regulations designed to protect consumer privacy and ensure the integrity of the financial system. Financial institutions must adopt technology solutions designed with robust, multi-layered security measures to protect against cyber threats, secure customer data and maintain the integrity of their digital platforms.
Redefining the banking landscape
Whether they are new entrants or long-established institutions, financial institutions must foster a culture of innovation to stay competitive in the modern financial services marketplace. Advanced platforms and open APIs empower them to innovate swiftly, adapt rapidly and offer cutting-edge products and services that meet the ever-increasing expectations of a digitally connected world. For example, Bank Midwest created OnePlace.bank to meet the unique needs of the healthcare profession. The bank’s OnePlace Capital business line already offered equipment financing options tailored to the specific needs of dental, medical and veterinary practices. Now, OnePlace.bank serves as the virtual home of this niche loan program, which also offers new deposit, treasury management, and ancillary banking services designed specifically for healthcare professionals. As OnePlace.bank’s needs evolve, Finastra’s open and collaborative solutions will enable it to adapt and grow its digital footprint.
An open financial ecosystem has the power to redefine the banking landscape, encouraging innovation and collaboration across the industry. As financial institutions seize opportunities to go beyond conventional banking models, open banking technology allows them to rapidly develop innovative financial products and sophisticated banking services that address evolving customer expectations in a digitally connected world.
