Consumers continue to embrace digital banking and services, which in turn is driving organizations to harness application programming interface (API) connectivity to create better experiences. Those companies, especially financial services organizations, unable to deliver better interactions could face customer alienation quickly and without warning.

A recent PwC Consumer Intelligence Series (CIS) survey found almost 73% of all people consider the customer experience an important factor in their purchasing decisions. Yet only 49% of U.S. consumers said companies provide a good customer experience at the moment. Even more distressing for businesses is that about a third of consumers (32%) said they would abandon their favorite brand after just a single bad experience.

In the same PwC survey, customers identified integration of new technologies and digitalization that would improve their experience as specific improvement areas. Satisfying those customer demands requires strategic fintech planning featuring an open omnichannel environment connected and integrated though APIs for an effective technical infrastructure.

APIs are important to financial institutions’ tech development and connectivity. Many core services and other fintech providers have come to embrace gaining customer satisfaction through strategic partnerships and open architectures relying on API connections. This API-driven integration tactic boosts speed to market, agility to adapt and relevant output. They permit software developers to improve the customer experience with specific functions not always accessible in core or peripheral systems.

These fintech add-ons address very specific problems, compete against and redefine traditional financial methods, and deliver financial services in new experiential ways digitally. In some cases, fintechs make more data available and provide more Apple-like personal experiences to consumers. Non-bank providers also aggressively targeting financial submarkets such as consumer and business loans, savings and personal financial management services, seamless payment options, and easier money movement and accessibility.

API controlled connectivity allows the addition, replacement or modification of components without any changes in the operation of other elements. APIs typically utilize or retrieve data from the core system. Often these platforms are not simply available directly because of connectivity issues or due to system disparities. APIs smooth over that complication from the account holder/end user perspective while concurrently allowing them access to this information.

There are many ways app developers can integrate with core systems and ancillary processing platforms. APIs help overcome integration issues and make scalability attainable. A few lines of API code allow any new system to connect within the present tech infrastructure without modifications to any hardware or software. APIs not only improve the customer experience by deploying new technology easily but also can improve system efficiency.

NXTsoft helps their clients quickly and confidently incorporate new technologies and vendor systems including better technology preparation to meet their current and future business needs.

NXTsoft’s vendor agnostic OmniConnect Platform, the premier open banking marketplace for all API needs, uses cutting-edge cloud technology to connect fintech solutions to financial institutions, ensuring that NXTsoft clients have the most secure and reliable integration environment in the industry. OmniConnect provides the access needed to the financial institutions information, removing integration obstacles and providing a seamless connection between third-party API solutions and financial institutions’ core digital banking, item processing and financial systems.