Open API, open banking

 

Many banks are currently opening their core functions through application programming interfaces (APIs). This happens on the one hand as a consequence of new regulation regulations and on the other because they have realized that this opens up new business opportunities. The revised Payment Services Directive (PSD2), for example, obliges European banks to share their customer transaction and counterparties with third parties, including, for example, Fintechs, retailers, telecommunication providers, payment service providers and account aggregation services. But also where the PSD2 has no binding effect, as in the US, a large number of API projects deployed by banks demonstrates the current trend to open banking.

 

Many banks have come to the conclusion that opening towards new players is a perfect way to provide innovations without employing an army of developers. Banks are aware of the growing challenges of Fintechs and other market players, but they have also realized that working with them can be an opportunity to maintain their position in the new digital economy.

 

Experienced partner for the transition

 

BGS has more than 15 years of professional experience in software architecture design, especially for banking applications. Our solutions are successfully operated by more than 30 financial institutions in various regions of the globe. This gives us the profound knowledge required for the seamless integration of heterogeneous, non-transparent software components into a new architectural structure that hides the heterogeneity of the system. This includes the customization or development of software interfaces to hide the distributed nature of applications.

 

The vision of the near future is wide-spread computing, multiple devices embedded in various physical objects participate in a global information network. Mobility and dynamic reconfiguration will become dominant features. This will even increase the demand for qualified, specialized service providers, such as BGS to integrate existing applications into new system architecture, or design the new applications fully compatible to the already existing solution.

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