Introducing secure data-sharing between the banking and financial services institutions (BFSI) industry and third-party providers promises better choice, innovation, and efficiency. However, managing data from diverse sources poses significant challenges, like getting clients’ consent, protecting data from breaches, and preventing algorithm bias to produce more accurate and reliable results.
The current fragmented state of the financial industry also hinders Application Programming Interface (API) standardization without common standards. Integrating data from internal systems, customer accounts, and third-party APIs is complex due to format, structure, and standard differences. Real-time processing further complicates the task.
Incorporating legacy core banking systems with modern open finance APIs is difficult due to security concerns and system mismatches.1 Financial institutions rely on outdated systems that are not designed for modern API interaction.
Therefore, businesses that want to stay relevant in the industry will require access to accurate, real-time information for decision-making and customer guidance. These financial institutions need to be able to handle vast amounts of data in various formats: structured (such as account balances and transaction amounts), unstructured (such as customer calls and social media reviews), and semi-structured (such as HTML and XML). Developing scalable solutions for increasing data volumes while preserving accuracy and security is crucial.
Globe Business, through its connected ecosystem of partners, can support financial services providers in their journey to build a more robust data exchange capability with the use of APIs.
Yondu IT Services2 helps build and bridge your data management capabilities through APIs and custom platforms tailored for the financial service industry. Globe Business’s Cloud Migration Service enhances operational efficiency and resilience by providing a scalable infrastructure that helps organizations swiftly adapt to market changes. With robust backup and disaster recovery features, businesses can minimize downtime and financial losses, which can help ensure continuous service and customer satisfaction.
While on the cloud, businesses can also streamline the management of their cloud resources through Cloud Orchestration.3 This solution lets businesses automate and coordinate operations across multiple platforms, enabling centralized control across multiple cloud platforms.
For financial institutions, banks, credit unions, and lending organizations, a Loan Management Solution can automate and streamline the entire loan lifecycle, from application to collection. This not only minimizes human error but also allows a centralized data repository to easily review and ensure the data gathered is accurate.
These are only a few examples of Globe's offerings that help businesses handle data safely and efficiently. Contact your Globe Business Customer Relationship Manager today to learn more.
Sources:
1https://corpgov.law.harvard.edu/2022/04/04/the-promise-and-perils-of-open-finance/
2https://www.yondu.com/
3https://www.yondu.com/core-sub-solution/cloud-orchestration
