Digital disruption is causing problems for long-standing enterprises across many industries, but none may be more vulnerable than well-established financial services companies. In a 2015 equity research report, Goldman Sachs found that financial services firms risk losing $4.7 trillion in revenue to high-tech start-ups.
The need for big banks to adopt mobile, web, and cloud technologies to support digital strategies can’t be understated. However, there’s a reason why large enterprises have difficulty being as agile as high-tech start-ups—their underlying layers of complex legacy systems.
For banks and financial services firms looking to keep up with growing digital transformation demands, API integration is the best way forward.
Learning the A.R.T. of the API—An Approach for Successful Digital Transformation
When executives hear about digital transformation projects, their minds often jump to the thought of overhauling their entire infrastructure of legacy systems. This is an understandable first thought, but it is not how transformation projects should actually be executed.
Instead, banks and financial services companies should consider the A.R.T. of the API—how to Adapt, Renew, and Transform their way through evolution rather than revolution:
- Adapt: In their Consumer Mobility Report, Bank of America discovered that 62% of Americans cite digital as their primary method of banking. Adapting to this new reality means developing a strategy to determine which business processes and data elements should be exposed through APIs for a digital customer experience.
- Renew: We’ve moved beyond the debates pitting waterfall software update cycles against agile cycles. It’s now assumed that even large enterprises can keep up with weekly or even daily updates to their software. However, this leaves a massive infrastructure of legacy systems that you can’t afford to just throw away. The right API integration approach allows you to renew your legacy systems, extending its functionality to new modern environments.
- Transform: It’s not enough to just create a responsive online banking portal or develop a mobile banking app—you have to be able to continuously adapt to new digital demands to consider yourself a digital transformation success. Most black box solutions for API integration are closed offerings, walling users from customizing the software to protect vendor intellectual property. To meet today’s demands, open standards are a necessity.
Harnessing the A.R.T. of the API gives banks an opportunity to take the backend power of their legacy systems and turn it into a fully-functional digital experience capable of competing with upstart financial services companies—all within a few days instead of the months or even years to overhaul the entire infrastructure.
However, learning the A.R.T. of the API requires the right software solution to bridge the gap.
A Blueprint for Your Banking and Financial Services Digital Transformation
To help traditional banks and financial services firms go from zero to digital transformation, we’ve created a blueprint for success—The Art of Transforming Banking & Financial Services Applications.
In this blueprint you’ll learn how to go from a physically-dependent business model for consumer banking to a digital platform that supports all of today’s consumer demands. With the right software to help you through the process, you can experience benefits such as:
- Time to market within days instead of months
- Significant impact to overall processing costs
- Flexibility to reach continued digital transformation success