Read how an open banking strategy can help banks in retaining corporate customers and acquiring retail customers.
Fable API Hub
API Hub offers a scalable and future-proof open banking strategy for banks.
APIs and open banking
Open banking is revolutionizing how banking services are availed by businesses. Banks all over the world publish their APIs for their corporate customers and fintech partners. This allows your corporate customers to access all their financial information on their own ERP systems.
With a properly executed open banking strategy, your corporate customers:
● Never have to log in to bank systems for every small task.
● Can digitise and automate their processes and systems to achieve high efficiency at reduced costs.
Result - A great customer experience which eventually leads to better retention.
This seems like a win-win strategy for everyone. However, there are roadblocks on both sides when it comes to proper execution.
Roadblocks at your customer’s end:
● High dependency on their ERP solution provider and other aggregators
● High involvement of IT team
● Custom integration can be costly and time-consuming
Roadblocks at the bank’s end:
● Banks might not have APIs built for key financial services
● Need to build custom APIs for each customer and aggregator as their tech stack can vary;
|○ Multiple ERP solutions|
|○ Different database types|
● Every integration requires very high involvement of the bank’s IT resources
● This makes the whole process less financially viable and not scalable
Therefore, even though there is intent from both sides, the adoption of these services is extremely low.
A better approach
Fable’s API Hub makes open banking adoption easier, faster, and more interoperable.
Thus future-proofing your open banking strategy while making it scalable.
Banks don't have to connect directly with customers, aggregators, and pay-out partners (domestic and cross-border). They can now have a single reusable API set for everyone to use. Imagine a Zapier for open banking.
Let’s explore this approach in detail.
One-time integration with Fable’s API Hub allows you to:
●Improve onboarding and integration experience for corporate customers, aggregators, and pay-out partners
● Have a fully standardised open banking API stack
|○ Single reusable API set for everyone to use|
|○ Very low involvement bank’s IT resources for every integration|
|○ No need to maintain multiple interfaces, thus reducing complexity|
|○ Lower cost of deployment and maintenance for every customer|
● Offer highly customisable open banking service to customers
|○ No dependency on ERP provider and other aggregators|
|○ Minimal IT work required|
|○ Customers can access all financial services on their own ERP solution;|
|■ Make transaction requests
■ Check transaction status
■ Check account balance
■ Get reconciliation related information
■ Upload and review documents
■ Perform KYC checks
■ Authenticate users
■ Get taxation related information
■ And many more..
● Reduce exposure of your core banking application to multiple entities
Let’s see how this process works for your customers
Making a payment
Here is how your corporate customers (like Unilever) can make payments to their vendors after availing their services.
Steps for making payments
|1.||The finance manager (user) wishes to make payments to their vendors (Either single or in bulk)|
|2.||The user logs into their ERP system (Like SAP, MS Dynamics, Oracle, etc) and makes a payment request|
|3.||The Fable API Hub authenticates the user|
|4.||Accepts the transaction details|
|5.||Debits the relevant account|
|6.||Sends the payment for delivery via domestic or cross-border pay-out partners|
|7.||Sends the success or failure (with reasons) update to the ERP system|
|8.||Passes accounting entries to the core banking system|
Here is how Unilever can make payments to their channel partners before dispatching inventory.
Steps for receiving payments
|1.||The core banking system receives an inward transaction (domestic or cross-border) favouring Unilever|
|2.||Once accepted, the core banking system alerts Fable API Hub through standardised APIs|
|3.||The API hub then updates Unilever’s ERP system with the details of received payments|
|4.||The finance manager gets an alert|
|5.||If required, the user can upload documents using the same interface|
|6.||Unilever dispatches inventory to the respective channel partner|
Fable’s API Hub platform is everything your open banking strategy needs, and more. It is:
|○||100% compliant with global regulations and internal bank standards|
|○||Fable is an ISO 27001 certified company and is GDPR compliant|
|○||Agnostic to bank’s technology maturity levels - works with file upload, REST, SOAP, SFTP, etc.|
|○||Agnostic to your customer’s technology stack - works with any ERP solution or Database type|
|○||Requires minimal involvement of Bank’s IT team|
|○||Eliminates the need to change your existing systems and components - Card Management, Core trade, FX, Doc management, or compliance systems|
|○||Allows you to set the rules, define corridors and make purpose-specific configurations|
|○||Offers multiple commercial and deployment options available|
Fable offers domain expertise and proven technology platforms to banks for all their domestic and cross-border payments needs.
With over 34 large and complex deployments across 9 countries, and 9/10 private sector banks in India already using the platform, Fable is a preferred partner for most banks.
Contact the experts at Fable and make your open banking offering scalable and future-ready.