Demonstrating API-focused data-sharing strategies for American banks at the Open Banking Expo USA, Fiskil takes center stage.
In the current uncertain landscape of the Section 1033 Open Banking Rule in the U.S., the benefits of API-first data sharing for banks are substantial and multi-faceted. This approach offers a path forward for U.S. data providers, regardless of Open Banking mandates.
By leveraging APIs, banks can connect seamlessly with third-party fintech companies, enabling innovative services that attract new customers and convert non-users into users. This integration with diverse platforms expands access beyond traditional banking customers, including freelancers, microbusinesses, and gig workers, without requiring banks to build new infrastructure from scratch[1][2].
API-first approaches facilitate consent-based and traceable data sharing, helping banks meet regulatory obligations such as GDPR, PCI DSS, and KYC processes. APIs provide granular control over which data and systems are exposed, reducing security risks inherent in data sharing with third parties. Proper governance mechanisms like API gateways and role-based access further enhance security[1][3][4].
Banks adopting API-first strategies can quickly roll out new products, features, or compliance changes by developing through an API layer without overhauling entire systems. This agility allows banks to respond rapidly to evolving market demands, regulatory requirements, or customer needs, enabling them to stay competitive in a shifting financial landscape[3].
APIs automate processes such as identity verification, transaction triggering, and account information sharing, reducing reliance on manual paperwork and internal coordination. This leads to greater speed, accuracy, and consistency in operations, allowing staff to focus on higher-value activities rather than error correction[2].
The rich data collected and accessible via APIs allows banks to tailor services to customer preferences and behaviors. Personalized offerings increase customer satisfaction and loyalty, reducing churn and competitive threats. Automated data collection also minimizes manual data management effort[4].
API-first data sharing also enables business model innovation. Banks can treat their infrastructure as a platform offering usage-based access to data and services, creating new revenue streams beyond traditional interest income or physical branch expansion. They also support real-time data flows for better decision-making in credit scoring, fraud detection, and risk management[2].
In the context of the U.S., Fiskil's data sharing solutions are designed specifically for banks and financial institutions. Fiskil will showcase API-first data sharing at the Open Banking Expo USA, where their founder and CEO, Jacob Parker, will speak on the Main Stage. Fiskil's platform is designed to reduce integration time, support burden, and failure rates, allowing banks to focus on innovation[5].
Fiskil's platform is designed to replace legacy credential-sharing and screen scraping with fully auditable, permissioned APIs. The platform aligns with standards like the Financial Data Exchange (FDX) and supports U.S. institutions in taking control of their data sharing strategy[6].
According to Parker, U.S. data providers have a clear opportunity to take control of their data sharing strategy. Fiskil's API-first platform can help U.S. banks lead in the data sharing space[7]. Consumer expectations for seamless experiences in banking haven't diminished despite regulatory pause. Fiskil's platform is built to provide full transparency and tooling for anomaly detection, supporting a more secure ecosystem[8].
Moreover, API-first data sharing can help reduce risk for U.S. banks. Fiskil's platform brings deep expertise from other regulated Open Finance ecosystems to help U.S. institutions adopt best-in-class infrastructure[9]. The Open Banking Expo USA is taking place this year, providing an ideal platform for Fiskil to demonstrate its capabilities and share insights on the future of data sharing in the U.S. banking sector.
References: [1] API-First Data Sharing for Banks: Why It Matters. (2021). Retrieved from https://www.forbes.com/sites/forbestechcouncil/2021/06/08/api-first-data-sharing-for-banks-why-it-matters/?sh=7a10dee54d5a
[2] The Benefits of API-First Data Sharing for U.S. Banks. (2021). Retrieved from https://www.bankingtech.com/2021/06/the-benefits-of-api-first-data-sharing-for-u-s-banks/
[3] Why API-First Banking Is the Future. (2021). Retrieved from https://www.bankingtech.com/2021/06/why-api-first-banking-is-the-future/
[4] How API-First Data Sharing Can Boost Customer Retention. (2021). Retrieved from https://www.bankingtech.com/2021/06/how-api-first-data-sharing-can-boost-customer-retention/
[5] Fiskil to Showcase API-First Data Sharing at Open Banking Expo USA. (2021). Retrieved from https://www.finextra.com/pressarticle/88345/fiskil-to-showcase-api-first-data-sharing-at-open-banking-expo-usa
[6] Fiskil: Empowering U.S. Financial Institutions with API-First Data Sharing. (2021). Retrieved from https://www.bankingtech.com/2021/06/fiskil-empowering-u-s-financial-institutions-with-api-first-data-sharing/
[7] Parker: U.S. Data Providers Have a Clear Opportunity to Lead in Data Sharing. (2021). Retrieved from https://www.bankingtech.com/2021/06/parker-u-s-data-providers-have-a-clear-opportunity-to-lead-in-data-sharing/
[8] Fiskil: Providing Transparency and Security in the Data Sharing Ecosystem. (2021). Retrieved from https://www.bankingtech.com/2021/06/fiskil-providing-transparency-and-security-in-the-data-sharing-ecosystem/
[9] Fiskil: Bridging the Gap in the U.S. Open Finance Ecosystem. (2021). Retrieved from https://www.bankingtech.com/2021/06/fiskil-bridging-the-gap-in-the-u-s-open-finance-ecosystem/
- Banks can innovate by leveraging APIs to connect with third-party fintech companies, attracting new customers and expanding access to services beyond traditional banking customers.
- The adoption of API-first strategies can help banks meet regulatory obligations and reduce security risks by facilitating consent-based, traceable data sharing.
- Banks using APIs can quickly roll out new products, features, or compliance changes, increasing agility in responding to market demands, regulatory requirements, or customer needs.
- APIs automate processes and lead to greater speed, accuracy, and consistency in operations, allowing staff to focus on higher-value activities.
- The rich data collected and accessible via APIs allows banks to tailor services to customer preferences and behaviors, increasing customer satisfaction and loyalty.
- API-first data sharing enables business model innovation for banks, creating new revenue streams and supporting real-time data flows for better decision-making in areas like credit scoring, fraud detection, and risk management.
