Almost 65% of India’s population stays in rural areas. Although this number is not alarming, it is undoubtedly a point of concern, as these individuals have remained outside the main financial ecosystem for a long time. However, with the help of agile digital technologies, a transformation is now happening across the small towns and villages of India.
With connectivity becoming increasingly strong and the use of smartphones on the rise, financial inclusion has become a viable possibility. This happens with user-friendly apps, mobile banking, and new fintech solutions tailored for rural populations. Continue reading to understand better.
What Is a Banking API?
Banking APIs enable different banking systems, platforms, or applications to communicate with each other easily. They transfer details, including account numbers and transaction records, from one system to another. Thus, handling requests from clients has become faster and more efficient for banks.
How Banking APIs Make Customer Handling Better
Because of APIs, banks can offer a broader range of features and assist customers in more ways. Customers have all their financial services available in one place rather than having to visit multiple platforms for each need. With the user-friendly system, clients can perform activities such as opening a loan, checking their balances, and more.
Adding API integration primarily allows banks to tailor their services to the needs of every customer by integrating data across the app, website, and ATMs. An API might connect the user’s bank app to a budget helper, which can provide them with personalized financial advice and insights.
By customizing the app, customers in small villages or towns feel like digital banking is easy and valuable to their situation. Having banking APIs eases the way features are built which appeals to consumers and ensures they stay involved.
- An illustration is the real-time processing of payments. Banking APIs enable customers to quickly transfer funds from one account to another, as needed.
- Customer service is advancing broadly due to the use of AI in chatbots. Because of banking APIs, chatbots have access to the customer information needed and can assist each person personally and promptly.
- Thanks to APIs, third-party services and apps can be connected to a bank’s platform directly by its users. Having the ability to deal with cryptocurrency transactions and investment management apps within the banking platform is one such example.
Customers can utilize banking APIs to manage their finances directly within the banking system they use. Additionally, banks may offer new services even if they do not develop them in-house. Hence, APIs are great for innovation and collaboration needed to bring financial inclusion in small towns and villages.
Benefits of Banking APIs for Customers in Villages and Small Towns
According to Onbe Survey, 74% of people prefer digital payments to traditional ones. Nowadays, checking account information online is more popular than visiting the bank, which means this number is likely to keep increasing. Using banking APIs, banks can help customers even if they are not near a branch. Some advantages are:
- Seamless customer experience
- Offering new and interesting products
- Streamlined data transmission
- Reduction of one-stop visit experience and touchpoints
Conclusion
Banking APIs are crucial for villages and small towns as they help make the financial ecosystem more customer-centric and interconnected. This interconnection further drives innovation and increases the overall efficiency of the banks. Such banking APIs are sure to improve the financial industry by upgrading customer service, facilitating easier financial services, and enabling collaboration.
If you are looking for a banking API for your bank, contact OmniPayments. We offer financial institutions a comprehensive solution to meet the various needs of their clients.
