Ozone API Launches Industry-First Tool for US Banks to Calculate the Cost of Building API Infrastructure

Ozone API, the global leader in open banking technology, announces it has launched an industry-first tool which forecasts an accurate estimated cost for US banks planning on building their own API infrastructure. It comes in response to the recent Section 1033 rulemaking under the Dodd-Frank Act, which means that American consumers will have the right to access and share their financial data.

The “Build It Calculator” can estimate the cost to a US bank of building and maintaining its own API infrastructure by analysing data points including, but not limited to, the desired length of time for project completion, the financial institution’s hosting costs and the value of a bank’s deposits. This information is then fed into a formula built according to Ozone API’s extensive experience delivering open banking infrastructure globally. The final cost even includes the salaries of employees required to support the project, calculated in line with the proportion of their annual working hours that would be spent on the API build, implementation and maintenance.

Having already been tested and validated by banks in the US, the tool helps financial institutions understand the complexity and cost involved in building APIs – and the hidden costs of maintenance, which can often be as much as half the cost of initial implementation every single year.

Using the Build It Calculator, banks of all sizes can estimate both the up-front cost and maintenance costs of building their own open banking APIs in a single phone call with Ozone API, bringing significant clarity to initiatives that often reach eight-figure budgets.

Eyal Sivan, General Manager, North America, Ozone API, says, “Open banking technology brings huge benefits to financial institutions as well as businesses and consumers, but building API architectures does require significant investment. We are making this tool available to help banks understand the scale of the undertaking and effectively prepare to comply with Section 1033. It’s crucial that banks are armed with accurate data to help them make the best decision, whether that is to build their own infrastructure or work with partners that can offer off-the-shelf or bespoke solutions.”

The tool has been rolled out in the US already and is set to expand into new regions globally, including the UK, MENA, LATAM and APAC.