Let's play a quick game of word association. Before you start, keep in mind that everything you thought you knew about traditional financial services is being challenged.
The problem with this game is that none of the words match! No longer do we associate making a payment with writing a check, or getting cash by going to a bank, or the cloud being a huge security risk. And most important, many consumers no longer trust their banks.
Banks are are ripe for disruption with the regulatory, operational and technology pressures they are facing. In order to survive the battle they must embrace new technologies to create value. They need to understand that APIs are re-shaping the future of financial services.
Fintech revolutionaries, Wealthfront, Stocktwits, and Robinhood understand. These companies and more are re-inventing the game by leveraging APIs and transforming the banking and financial services industries.
At the Money Conference being held this week in Belfast, Ireland, Xignite CEO Stephane Dubois made a key observation:
“When the most powerful competitors you have had in 25 years come and challenge your core business by leveraging APIs, you must pause and try to understand what is wrong with the way you operate.”
What Will the Fintech API Ecosystem Look Like?
Dubois predicts that the new ecosystem will be made of leaders in their respective categories - an interlocking ecosystem of interdependent financial APIs. Growth will be driven by lower costs, increased business agility and greater user/investor experience/service.
The Next Generation of Financial Applications