API Banking has been transforming and simplifying customer experiences ranging from smooth payment completion on Amazon to taking immediate loans from Fintechs like Happy Loans.
Now, customer do not have to go to different partners to satisfy his / her needs. Despite using Ola for past many years, I still feel the joy of exiting the cab without taking out my wallet!!!
All this has happened due to availability of Apis from digital savvy banks… However, most banks do not have a strategy and knowledgeable team to take this ahead.
One of the biggest reason is the name itself. Management thinks of API Banking as some buzz word that tech community is talking about. There is an urgent need to simplify the name so as it to make it amenable to business discussions. I believe simple name like “Partner Business Banking” may help.
We already have seen the impact of name… UPI remained unknown for nearly 1 year till it was launched as BHIM.
In next 3 years, potentially 50+ percent of revenue of digitally savvy banks would come through APIS. It would come from lending initiated by third parties (Fintechs, ecommerce, pos providers etc), payments (upi/ imps), trade etc. It’s time for management to wake up to Partner Business banking.