How Open Banking is bringing banks into the future.

Photo by Joao Nogueira
Photo by Joao Nogueira

How Open Banking is bringing banks into the future.

If you are a bank in the twenties, partnering with a FinTech is a great idea! The speed and agility of an independent partner greatly offsets your risk while reaping the benefits of small and hungry teams.

As big colossuses, banks and other financial institutions often find themselves hogtied by outdated systems and arcane technology (Cobol anyone?) which makes it hard to keep up with the ever changing demands from consumers and the technological landscape. Not to mention the acrobureaucratics one has to perform to get the green light for even a small modification of the technical stack.

Thank god for Open banking! Once seen as a potentially rabid swarm of piranhas out to pick the bones of the pillars of economy, it has proven to be a helpful dolphin that bridge the gap between the old mystical world of monolithic financial institutions and the pixie dust covered helpers that are Fintechs—without skipping a beat.

What’s in it for you?

If you are working at a bank, financial institution or other form of incumbent, there’s a whole slew of benefits. Less risk, better speed, increased security, greater profitability, the list goes on and on. Let's take a closer look at the most interesting benefits.

Faster Payments

Open Banking will enable payments to become almost instantaneous. For the end user it’s an obvious benefit, and as a lord of the land it means that you don’t have to plow down time, money and frustration in building or rebuilding the infrastructure that will take the money where it needs to go. You don’t even need to build the car. There are fintechs that will build the roads (i.e the necessary infrastructure) and there are fintechs that drive the cars (i.e handling the transactions). There’s a place for everyone.

Speed to market

Holding on to the roads and boats analogy a bit longer: in the time it took for Audi to launch their first e-car, Musk went ahead and launched his hundredth rocket into space. That says nothing about the performance of the Audi, it’s probably a splendid car, but it goes to show the extreme speed that a focused and agile company can move with. Open banking technology is certainly quicker to market and more cost-effective than building a spaceship, but fintechs agility significantly decrease time spent on design and development cycles and increase the speed to market.

No more screen scraping

Screen scraping is yet another skeleton that’s being cleaned out of the proverbial closet with the help of Open banking API’s. Building on existing frameworks and with the insight from the old masters of the game (that's you!) developers of third-party applications can meet much higher security standards and regulations than before. Without sacrificing speed.

A Seamless Experience

It’s in a fintech's DNA to make the easiest and least intrusive experience possible. Most of them are built with a single problem in mind, with no technological debt or legacy. That means that you don’t have to pour resources into developing anything new, just lean back while the pixies are doing their magic.

How Zimpler can help

We have support for over 1 300 banks across Europe to improve transactions between business and people everywhere. Our approach to account to account payments is that it should be instant all day every day and totally secure for end users, banks and business owners. That means a robust anti-fraud system, a diligent KYC process and a support team with exceptionally low response times. Our numbers speak for themselves.

We serve several segments and are always looking for a fresh way to use our services. Webshops, marketplaces, gig economy operators, travel, financial services are all part of the Zimpler vision. By supporting us you are helping your clients to have a frictionless payment experience in all these segments.

If you are a Bank and want to know more about how Zimpler can help you achieve your goals contact us.

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