1,000 developers worldwide use figo’s banking API
A pool of knowhow, ideas and products which also benefits banks
Banking is becoming a context-based, and above all, useful everyday companion. Making this possible requires a combination of inspiration, creativity, ideas, and of course the ability to bring the mix to reality. Not to mention an entire profession: IT professionals active in the FinTech field, the most sought-after good in an industry! Nearly 1,000 developers, companies and banks are now working with the figo banking API, proof that the Hamburg company has developed a dynamic FinTech ecosystem. Clearly, figo has an asset in place from which banks and software companies can benefit. With the banking API, third parties have the opportunity to connect their applications, products and services with several thousand financial sources in a short time.
Hamburg, October 2016. The FinTech industry is booming. But it’s no longer about media-driven fears of new companies being the enemy of banks in the field of financial technology. All financial actors are aware that it takes cooperation, synergy, to develop products that provide customers with real added value. And of course, there are factors that are currently spurring competition. These include not only changes in user behavior and the accompanying demand for smart and user-friendly applications. The Payment Services Directive 2 (PSD2), which includes among other things the ‘Access to Account’ (XS2A) guideline, an opening of banks to third parties, has significantly fueled the current financial market. This market-transforming EU policy is a game changer when it comes to dealing with financial data. Firstly, financial institutions will be obliged to open up to third parties access to online payment accounts of its customers. However, it can also encourage new thinking that will allow banks to monetise innovative ideas. Because it’s also clear to banks that their product portfolio has to be adapted to a fully-digitized group of customers. For this reason, many are already using platforms that enable their customers to consolidate all their financial data,including what they have with different banks and financial institutions.
Recent developments have shown that banks are on their way to becoming tech companies. Just today, for example, Deutsche Bank opened the think tank ‘Digital Factory’. Their aim is to integrate numerous FinTech offerings into the bank’s own infrastructure and to establish a framework for cooperation between bank employees and FinTechs.
“In this construct, developers provide dynamic solutions that move in a design space where they can be courageous and also be able to implement unconventional ideas. These young companies are driven by an idea—perhaps an initially fixed idea—and want to tackle very specific subjects. This clearly makes them a desirable sparring partner for banks,” says Christoph Scheuermann, Head of Sales at figo.
There are already numerous examples of such solutions successfully developed in cooperation with banks. One is auxmoney, who bring private borrowers and private investors together in an online marketplace, and takes care of the credit settlement in cooperation with banks. In cooperation with various banking institutions, fino and FinReach offer account switching services. These are all newcomers and products serving a specific use case, brought to life by developers on the foundation of the figo Banking API.
“Banks need good developers not unknown to the industry, who want to deal with the issue of financial services that move securely between the banking and FinTech worlds, and who are just driven to change something. And the good news is figo has a network of such developers,” adds André M. Bajorat CEO figo.
The Hamburg-based company has developed a dynamic FinTech ecosystem and generated a new standard for linking financial data. In this, figo has managed to reduce the complexity of integrating banking services into third party products and enabled new touchpoints between players in the financial sector and end customers. The company will show how easy it is to implement the technology from 9 to 11 October at the third annual Bankathon. Here, figo will again bring together a variety of financial actors—developers, FinTechs, banks and software houses—in order to develop prototypes.