Danny Healy, API professional at MuleSoft

Many banks are viewing regulations around Open Banking and the opening of APIs as ‘just another project’ and are failing to develop anything coherent and useful out of it, a banking software developer has claimed.
Danny Healy, API professional at platform developer MuleSoft, said it is time for banks to move beyond regulatory compliance and look at how APIs can unlock greater value of a kind that allows them to keep pace and even outmanoeuvre their fintech rivals. Healy wants to see banks increasing their focus on building new APIs that bridge the gap between customer experience and the data that drives it, enabling them to create digital services that redefine consumer expectations of what is possible.
“APIs are present in banks now – it’s the law of the land,” he said. “Initial use of APIs has been driven by regulatory demand – quite narrow use cases really. Some banks have looked at this as almost another channel to be developed, almost in isolation. It’s another system added to what they already have. Each new technology is layered on top of the last. They need really to do more to join all this together to use it in a unified way. As well as just meeting regulatory aspects, they could be driving more value out of these APIs. Some banks are indeed looking at how APIs can drive more value in their organisation, instead of just ticking a box. They are looking at it in a more joined up and consumable way.”
Healy thinks banks need to be pushing API possibilities into ever newer areas: “An API, built once, can be used across various channels – mobile, web and so on,” he said. “In future you can imagine banks embedding APIs in a third party of some kind, perhaps a motor insurer, to play a part when someone is buying a new car. They can also look at building in APIs from other parties, perhaps cloud providers.”

by Guy Matthews
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