Connected API Banking- Helping Customers Sail Through the Financial Uncertainties During Covid-19

Connected API Banking

Connected API Banking- Helping Customers Sail Through the Financial Uncertainties During Covid-19

Banks across India are helping small businesses and millions of consumers manage financial uncertainty during the post-Covid-19 pandemic. Although there has been a rise in the challenge with ingenuity, there is an increased need to accelerate digital transformations through API banking services. IT departments have been highly successful in the banking sector to deliver financial support to the masses so that they can withstand the monetary effects of Covid-19.

Fintech leaders have been seeking digitising and connecting the processes, key channels, and systems to support increased consumer demand. With that aim, they make use of the following three principles to ensure trusted advice and financial support during these trying times. Let’s try to understand them and how a connected API banking portal can help.

1. API Banking Platform to Scale and Digitise Lending Operations

Money lending is one of the primary operations in the banking industry. In response to the Covid-19 led financial uncertainties, banks feel the need to connect and digitise their processes. Once this is done, they can efficiently handle the surge in loan applications, refinance inquiries, and forbearance requests. Indian banks’ portals still lack connectivity to the loan origination and document management systems. Common challenges in the integration system add to the problem. This is where the increased emphasis is being given to API banking services across the Indian banking system. 

Must Read: A Beginner’s Guide to API Banking Services and How They Work

With an API banking portal, banks can integrate processes required to solve immediate challenges and future-proof the lending operations for years ahead. Banks are exposing their functionality and data to modern API-led digital channels by using API banking examples for back-end origination systems. They enable straightforward loan processing received through mobile applications and websites. The same is applicable for multiple lending products, including auto loans and mortgages. These are most preferred by consumers who can lock in low-interest rates on their loans.

2. Single Consumer View to Deliver Faster Relief

Banks offer advice and assistance to consumers who need finance outside of lending. With the API banking portal, they can administer such support more intelligently and quickly by unlocking a single consumer view.

Several consumers have been dealing with reduced income due to layoffs and non-working hours caused by the pandemic. Without waiting for such customers to reach them and ask for help, banks can proactively send them notifications and inform them about their available options. For instance, if they notice interruptions in your monthly EMIs or deposits, they may notify you about the available fee waivers or deferred payments. If you require assistance waiving your overdraft fees, the predictive analysis tool of the API banking platform can evaluate your likelihood of requesting loan forbearance. They can work on your payment plan, strengthen your customer relationship, and forecast to manage risk with such information.

To deliver such experience, banking institutions need a single consumer view across their marketing programs, mid-office functions, and frontline employees. By integrating back-end systems with their front-end systems, banks use transactional data to trigger their marketing campaign and suggest specific assistance to a relationship manager. With this, banks accelerate and improve their relief efforts for consumers.

3. Increase Reliability on API Banking and Digital Payment Systems

Post-Covid-19 is the perfect time to enhance digital systems in banks for the movement and management of finances. A large percentage of customers are already using mobile apps and websites to perform their routine banking transactions. Today, with limited access to the bank branch and most customers staying at home due to lockdown orders, reliability on an API banking platform has become even more essential to help people manage their money.

Connectivity across external systems, back-end, and front-end is necessary to provide a fully digital, functional, and frictionless banking experience. Banks need to integrate their digital channels with their core systems. Wherever customers want to open their account or perform a transaction via a mobile app or web portal, API banking services can securely give them access to the core banking functions.

Must Read: How API Banking Has Transformed the Indian Financial Services Industry

This is the right time to offer modern transaction systems to the customers, such as push payment systems and mobile wallets. Such valuable tools help them to transact without paper cash and in a much quicker manner. However, these functions largely depend on a well-governed and secure approach to consuming APIs from a reliable and experienced API Banking Solutions company in India.

To help small businesses boost their in-person sales and make payments more manageable for the customers, FidyPay is an API Banking Services company offering a host of APIs ready for integration. They provide an eCommerce platform through which merchants and customers can process payments seamlessly. By powering connectivity, these APIs ensure visibility to customers into their banking operations. The end result is an incredible digital experience for clients as well banks and merchants in an accelerated frame of time.

The Need to Accelerate Transition to the API Banking Platform

API banking services can make the processes much faster, straightforward and efficient. With these, banks can offer faster services to the customers, including balance enquiries, account opening, account validation, money transfer, and mini statement. It uses real-time data so that customers can manage their finances using the self-service API banking portal. Some of the most sought-after benefits of API banking include:

  1. Since all operations are conducted under one platform, it gets easier to track, manage, and view accounts efficiently, thus saving time.
  2. All account details are shared under one platform so that you can have a clearer view of your finances and manage them with extra speed and clarity.
  3. When banks embrace digitisation, they are able to communicate better with the applicants and offer the service in a much faster and easier way.
  4. When banks give access of your financial state to other financial companies and lenders, they can review it and offer you customised facilities according to your needs. 
  5. Many customers still do not want to share their data with an API Banking Services company. However, they can actually offer more protection than traditional banks and assure security.

Several API banking examples make API banking an essential part of the Indian banking system. Owing to the widespread transformation in the Indian financial sector, it is necessary to stay updated with the latest trends and offer the best of services to the customers. Partner with an API Banking Solutions company in India like FidyPay and accelerate your digitisation proceedings with extra convenience and security.

Please send us your query at care@fidypay.com or call us at +91 731 4986854 to avail of our services and more information.

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