Your members live in a modern world where they are reliant on technology and the internet. Technology has taught us that we can expect almost anything to happen instantly. Ordering lunch, getting a cab, texting a friend, selling stock, applying for a job... these can all be done in a few clicks, and even better, many of these experiences are personalized because providers can tap into historical data and serve up offers that they know we'll want. User expectation is that this level of service should be available in all interactions, and if you can't provide it, someone else will. Open banking is the key that unlocks that experience for your members.
What is Open Banking?
Imagine you were sick and you went to your primary care provider, who then recommended you see three different specialists. Those doctors could give you their individual exams and findings, but a body doesn't operate in parts; it operates as a whole. You would be served far better if you received collaborative results to assess the total picture. Similarly, a member's financial existence is more than a savings account or a loan balance; it's all synergistic--every financial component impacts the other.
The idea of open banking is to break down the barriers of disparate financial data points to give a single, unified view of a member's financial picture. It is executed by using application programming interfaces (APIs), in combination with your credit union core processor, to connect the silos of financial services that a member receives. The members experience a friction-less flexibility to make and receive payments, apply for loans, manage their credit card, view balances and transaction history--all from a single platform without sacrificing security. Though it was once believed that all of these data points should be stored and reviewed individually, an overall view can empower your member to see the bigger picture of their financial lives.
Benefits of Open Banking to Members
- Personal finance management to help members budget and spend smarter
- Access to credit and loans when they need them, without pages of forms and time wasted waiting for processing
- Ability to deposit funds remotely via electronic deposit
- Faster eligibility checks and approval process for new account opening
- Personalized offers for additional services that will benefit members
Benefits of Open Banking to Credit Unions
- Drastic improvements in member service and satisfaction
- Improved ability to leverage internal data points that were once impractical or overly time-consuming
- Enhanced agility to add services for cross-selling as demand requires
- Increased potential for collaboration with third-party providers that can allow you to expand your offerings
Open Banking is the Way of Tomorrow
This approach will not be a fleeting trend; this is the direction services throughout our lives are headed. Our interaction with technology generates exponential amounts of data. By bringing that data together, we can create endless opportunities to serve members in more targeted and custom ways. Don't wait until your members notice you don't offer the experience they expect. Instead, delight them by proving you've got their future in mind.
Learn about integrations in the FLEX core processing solution, that contribute to our platform to support open banking.