Many industries view “appification” as one of the most important drivers of technological innovation in coming years. In open banking, this advantage opens the door to previously unexplored territory, even outside traditional banking.
APIs open up a wide range of business models in sectors as diverse as energy, aviation and real estate.
These are four examples of how APIs can bring value to people.
Product innovations in the digital age aim to offer people what they need when they need it. The flow of information provided by APIs can be used to create relevant products: knowing users better makes it possible to offer them customized solutions and, sometimes, even to anticipate their needs.
For example, we can try to adjust our products/services to the stage in each person’s life cycle. How can we help someone who has just graduated from college? That Master’s degree she would like to get might be within reach if she knew she could get the right financing. But we can also use APIs to anticipate more immediate needs. They are the driving force behind apps that help people choose, for example, which nearby gas station has the lowest prices at a given time, or which supermarket has the best price on an item that day.
In digital registration processes, whether to subscribe to a streaming service, create a profile on a commercial platform or log in to a network for holiday rentals, it is common to offer the option to use the credentials used in some other online business, such as Google, Facebook or another social network.
APIs are also behind this feature, which allows streamlining procedures and the onboarding of new customers, who appreciate the speed and simplicity of this process.
However, who guarantees the company that the data provided by the user to these third-party platforms are accurate and reliable? In the case of login processes generated through banking platforms, this obstacle is resolved reliably.
For example, the BBVA Customers API helps avoid long registration forms and replaces them with a simple login, as in the above cases, but with the certainty that the user’s identity has been verified by a bank manager, who may even have accessed official documents to certify it.
A convenient and efficient solution for the user, and one that’s fast and reliable for the company as well.
Improving financial habits
Something as simple as checking bank statements or the current status of charges and payments on a daily basis in a single, centralized app can help users view their financial situation much more thoroughly and make informed decisions faster.
APIs allow information to be exchanged securely and immediately, facilitating its aggregation and making it possible to review the information in all our accounts in different banks on a single interface, as is the case with the BBVA app. This feature helps customers stay aware of their financial health and, if complemented by the right tools, can help create good spending, planning and saving habits.
For example, the BBVA application provides a categorized listing of income and expenses, creates budgets and, with its Bconomy feature, helps control expenses and achieve the financial goals set by the user, helping create new financial habits in areas as important as investing, insurance and retirement.
With service synergies
Open banking makes it possible to enhance any digitally prepared business with financial capabilities that complement its products and services by providing value to its customers. It is an effective tool that promotes innovation and digital transformation, while improving the user experience.
A good example is the integration of financing into the purchasing process, whether for small, everyday items or for high-value products, such as a home or a car.
APIs make it possible for companies in every sector and of every size to incorporate into their purchasing processes the simulation of bank loan fees, a pre-approved loan from a financial institution, or an application for specific financing that allows the user to purchase whatever they wish.
Consumers thus have access to a wide range of possibilities to satisfy their financial needs, and the company opens a door to its customers so they can successfully complete the purchase.