Open Banking is one of the revolutionary technologies in the world that empower banks to reinvent their business models. Banks can leverage open banking to partner with fintech and other third-party service providers to provide their customers with an extended experience. This rapidly evolving ecosystem is highly driven by open banking APIs which change the way to integrate with third-party providers.
In this blog, we will explore more about Open Banking and Open Banking APIs impact on banks and their customers.
What is Open Banking, and how does it work?
Business drivers working behind the advent of the Open Banking
Benefits of leveraging Open Banking API for Bank or Financial Insitute
- Customer Engagement: With the evolving financial ecosystem and customer demands, it enables customers to interact with their financial data in a secure, flexible, and future-proof manner.
- Payments: Increases digital revenue by enabling customers to use their cellphones to pay using digital and mobile wallets for nearly any reason.
- Banking-as-a-Service (BaaS): By ensuring speed, agility, and innovation, BaaS promotes an effective Open Banking API strategy through API-led connection.
- Remittance & Currency Exchange: Utilizes the Open Banking API to support international money transfers and remittances in a straightforward, quick, and affordable manner.
- Customized Product Offerings: Enables financial institutions to provide more transparent, individualized products and services, which is highly advantageous to customers.
Why is API testing in Open Banking important?
Banks must ensure that integrations are finished and tested as extensively as feasible when it comes to open API testing. During API testing, banks will primarily need to evaluate the data response and behavior of API queries. They will demand that APIs be created and tested that are in line with crucial business logic and processes.
When employing APIs, banks are required to take input data in the form of structured requests and deliver responses. Most API testing, including functional testing, dynamic data creation, complete regression testing, test scenarios that cover the entire ecosystem, performance, ad hoc scenarios, and reliable security testing, may be automated by banks.
Here are some statistics showing the dire demand for API testing services in the BFSI business, particularly the banking sector.
- The global API testing market is anticipated to grow from USD 447.4 million in 2017 to USD 1,099.1 million by 2022, at a Compound Annual Growth Rate (CAGR) of 19.69% during the forecast period, according to Markets and Markets.
- By the end of 2022, the API testing market is anticipated to grow at the quickest rate in the BFSI vertical.
- The market for API testing is being driven by the open API approach, which exposes a variety of financial APIs to other organizations. As a result, both its importance and the necessity to spend money on automated API testing are expanding.
Open Banking – Future of Banking
Need support? To understand more about the significance of API testing in Open Banking, Contact AgileSoft Systems‘ banking and API testing experts.