We just In the first chapter of a long journey to Latin American technological growth.However, the region’s thirst for innovation is expected to expand the market. Almost 10 times Over the next decade, API-based open banking will take the lead and act as a facilitator for digital transformation.
As LatAm companies and start-ups continue to integrate with the new era of platforms and services, it has become imperative to adopt API-driven transformation strategies. As a result, the entire financial system has been “API-ized.”
In other words, this open API ecosystem, where third-party service providers access consumer data from financial institutions, optimizes financial services, reduces the cost and time spent on transactions, and improves the user experience. Means.
The benefits of open communication between different products and services include credit scoring, transfer between bank accounts, and when spanning industries such as Neobanks, credit providers, and personal financial products that Latin Americans use every day. It’s almost infinite.
In 2019, API usage Finance and e-commerce In the sector, we are now expanding into other areas such as marketing and insurance. Fintech companies We are increasingly working with traditional players such as banks, clearing houses, insurance companies and stock exchanges. Cryptocurrency trading platforms and companies are also fighting for their space in the spotlight, and most of their operations have already been digitized, so they are adopting API platforms to support crypto assets.
The API revolution seems to be on track. So what’s next for LatAm?
Key to technology penetration in LatAm: API
Until recently, many traditional financial institutions and banks in Latin America were gatekeepers, and bank accounts were a prerequisite for consumers to participate in the economy.And before that Appearance of FinTechThe back office infrastructure of these financial institutions for risk management, credit determination, and fraud detection included manual labor and necessary inter-departmental coordination.
Each step was done by a person, from user registration to product / service production. This often led to poor customer data utilization, increased transaction costs, impeded innovation, and a poor customer experience.
As financial institutions engage in digital transformation, Andres Meta, VP of Grupo Bind Arfintech co-founders said many banks have partnered with FinTech and have access to technology-based products to create their own business models and maintain relevance.
One way to refresh your back office, reduce costs, and improve communication is to use APIs. This gives access to information, improves consumption of products and services, disrupts established value chains and disrupts structure.
How the region is being APIfied – TechCrunch Source link How the region is being APIfied – TechCrunch