Singapore-based DBS Bank has unveiled the world’s largest API developer platform. The platform encompasses 155 APIs across more than 20 categories, such as fund transfers, rewards and real-time payments. Briony Richter writes
The platform was launched on the 2nd November 2017. Recently, DBS have collaborated with fintechs and other players in the industry to make banking much quicker, simpler and more efficient through the use of APIs.
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By GlobalDataOne cannot underestimate the critical role of APIs in Open Banking initiatives. The future of Open Banking and APIs is not limited to the platform that already exists. In fact, the potential of open APIs extends far beyond traditional banking infrastructure and business models. APIs can be designed to include all of the services and products a consumer wants in a digital world.
By developing secure API platforms, banks make it much simpler for third parties to work with them, opening up the possibilities for innovative and unique solutions for consumers. Consumers can then engage more creatively with their financial data.
Speaking to RBI, a DBS spokesperson explains the benefits of the API platform for consumers. The spokesperson says: “Customers can enjoy a wider array of innovative apps with better user experience, as well as faster and simpler payment processes.”
Through embracing open APIs, banks and other financial organisations can appeal to existing customers with new innovative services. Consequently, by launching its API developer platform, DBS is better equipped to retain existing customers and attract new ones.
Shee Tse Koon, managing director and head of group strategy and planning at DBS, states: “The digital momentum that we see today is just the tip of the iceberg. By creating ecosystem partnerships – collaborating, creating and innovating together with partners – we believe that we can provide the best products, solutions and experiences.
“This launch is a bold move in the direction of shaping the future of banking, with the customer at the heart of the banking experience.”
With this platform DBS can control the levels of access, detect abnormalities and identify threats in real-time. In the age of constant digital developments, coupled with cyber threats, banks desperately need a platform that can work as quickly as the threats arise.
Collaboration
APIs can support banks in pursuing new and unique distribution channels. By doing this, DBS will be able to discover new ways to improve the consumers’ digital banking experience. Furthermore, the platforms developed can process and respond swiftly to rapid changes in digital technology and capabilities.
The platform is already being adopted by fifty companies including McDonalds, MSIG, PropertyGuru and several start-ups.
David Gledhill, group chief information officer at DBS, highlights: “DBS embarked on a journey to transform our tech infrastructure nine years ago. With that early start, we are now ahead of many others in being digital to the core.
“This has given us an edge – enabling us to operate with fintech-like agility and nimbleness, and also platform-like inclusiveness. This will be transformative in ways not imagined previously, both for the customer and the bank.”
Another point was how collaboration is vastly important for the banks in order to meet the needs of its customers. The spokesperson states: “To effectively meet customers’ needs and exceed their expectations, we hope to collaborate with more businesses, from leading consumer brands, SMEs and large corps, to introduce better products and services.
“The face of banking is changing dramatically, precipitated by huge shifts in technology – mobile, the social/networked economy, Big Data, artificial intelligence, etc. The ubiquity of the smartphone renders the paradigm of going to a bank, or an ATM, or even interfacing with the desktop irrelevant.
“With the smartphone, banking does not have to be an independent activity but is one that is embedded into customers’ lives, integrated with everything they do.”
APIs not only benefit banks in their current business model, but enable them to reach new market segments and expand on their infrastructure. Businesses can now accept DBS points in exchange for their services. Now those points can be spent anywhere.
ProprtyGuru, Asia’s leading online property business uses the platform from DBS to get affordability assessments in real-time.
Vivek Kumar, director of product consumer technology at PropertyGuru Group, says: “In Singapore, PropertyGuru helps more than five million people every month to find a home.
“We constantly deliver on our mission to empower property seekers to make confident property decisions and are very excited to partner with DBS and launch Singapore’s first home loan affordability check.
“Property seekers, while browsing for property options, now have real-time access to their home loan affordability making their search process extremely effective.”
Harnessing open APIs brings a wealth of strategic opportunities. Those platforms will give banks a much more in-depth understanding of which client segments need the services that APIs can provide.
The actionable data that DBS can gather through its API platform includes buying habits, financial information, social trends, interactions and much more. API platforms are the foundation of digital transformation for the financial industry. By exposing the business infrastructure to APIs, the true potential of digital services can be unlocked.
