The transformation to Banking as a Service continues, with many large-scale consumer oriented Banks, such as Citi and Capital One actively engaging with fintech to ensure their customers have access to functionality and service they wish to employ personally. Containerizing this functionalities helps to promote a more fluid and dynamic delivery environment where customers are able access a wide of focused financial services.
This channel can then be made available to developer community, in a secure manner via OAuth system. OAauth is an industry standard system which allows bank to remain the gate-keeper of authentication. OAuth style authorisation ensures legitimacy of the customer connecting to the API and also allows banks with facility to shut down the connection at any point of time, if fraud is detected. This is better for security because there is no copy of passwords outside the bank and hence, no developer has access to the end customer credentials.
Mercator Advisory Group’s attendance at FinDEVr New York 2017 confirmed our recognition of the acceleration underway with financial institutions generating and promoting their markets of APIs to fintech developers. We expect increased granularization in the missions of financial app development in the coming year, as we progress to a consumer self-directed structuring of personalized apps in the not too distant future.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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