Empowering Banks to Attract the Next Generation of Customers | FIS | FF News at Money20/20 USA

Empowering banks to attract the next generation of customers.

At Money20/20 USA we had the pleasure of speaking to Hashim Toussaint, Head of Digital and Open Banking at FIS who lets us know how they’re helping banks engage and retain younger, digitally savvy consumers. 

APIs have a huge role to play in this and their Code Connect platform is helping banks innovate even faster through their marketplace. Watch this great interview to find out how FIS is empowering banks to roll out new services and differentiate in a crowded market.

The Rise Of API Based Banking

Toussaint, who leads the digital and open banking initiatives at FIS, shared insights which shed light on both the competitive landscape of digital banking and the role that APIs can play. They’re now being used by 70% of banks to support internal purposes, and 30% of banks use them externally. According to McKinsey many companies now expect APIs to lead to increased revenue. 

One of the main drivers behind their use, identified by Toussaint, is attracting and retaining younger consumers whose banking preferences differ markedly from those of previous generations. These digital-native consumers tend to use multiple banking services, making it difficult for traditional banks to capture and keep their attention. FIS is focusing on building seamless and accessible customer journeys to meet the expectations of these younger customers. This means ensuring that they can quickly access their accounts and financial data, as these frictionless interactions are essential to keeping the next generation engaged.

To meet these demands, Toussaint explains, FIS relies heavily on APIs, which allow banks to innovate more quickly by integrating third-party solutions rather than building everything in-house. APIs have become a critical tool in digital banking, particularly in the area of Open Banking, enabling financial institutions to leverage cutting-edge services developed by fintech partners. This approach gives banks access to “best-of-breed” solutions—something especially crucial for keeping up with the rapid technological shifts required to attract younger customers.

Code Connect Leading The Way

A key element of FIS’s API-driven strategy is its Code Connect platform, which Toussaint describes as both a repository and gateway for all of FIS’s APIs. Code Connect houses core banking APIs, money movement APIs, and more, creating a one-stop shop for banks to access and integrate FIS’s technology offerings. This streamlined approach allows banks to build new, customer-facing solutions by combining FIS’s robust suite of APIs, facilitating faster time-to-market and enabling banks to differentiate themselves through innovative, API-powered services.

For banks looking to enhance their digital capabilities, partnering with fintech companies has become essential. As Toussaint points out, FIS has created a single entry point into its ecosystem, simplifying the process for fintech partners to integrate with multiple FIS solutions at once. By reducing integration complexity, FIS empowers fintechs to bring their innovations to banks faster, ultimately speeding up the delivery of new and compelling experiences to end consumers.

Regulatory Squeezes

A hot topic at the event was the impact of new open banking regulations, specifically around Section 1033 of the Dodd-Frank Act, which outlines requirements for consumer access to financial data. According to Toussaint, the conversations around these new rules have been lively, with banks expressing both optimism and caution. Many banks are eager to explore the potential of open banking, yet they are also weighing the associated risks and operational changes that compliance will demand. FIS is closely monitoring these regulatory developments to understand how best to support its clients in navigating this new landscape.

It’s clear that FIS is deeply focused on leveraging technology to meet the evolving demands of a diverse and digitally savvy customer base. Watch more of our great interviews from Money20/20 Vegas right here.