How can banks compete with the tech giants (Google, Amazon, Microsoft, Facebook, and Apple) as they extend their tentacles into financial services?
1. Creating a marketplace for open banking APIs
LUXHUB provides a developer portal with a catalog of PSD2 APIs available from each participating bank. Marketplace members can sign up to access each bank’s APIs, spurring a co-opetition model where the LUXHUB platform manages all aspects of the third-party developer experience.
2. Providing compliance-as-a-service
LUXHUB delivers services that banks need to meet PSD2 regulatory requirements (including exposing APIs, validating AISP or PISP certificates, and providing the mandatory sandbox and documentation), so they can focus their efforts on creating new business models and revenue streams with APIs.
3. Offering a modularized platform
The platform includes tasks, a developer portal catalog, and API management capabilities, but banks and third-party providers don’t have to use everything all at once. They can take a modularized approach to speed innovation and reuse parts of their PSD2 APIs in new API products.
4. Generating new business models
One of the advantages of the common open banking platform is that banks can work together to identify non-PSD2 API opportunities. And by leveraging the demand side, LUXHUB can introduce strategic fintech API consumers to a pool of banks to discuss new products and business partnerships.
5. Keeping pace with emerging standards
Using AMPLIFY™ API Management, LUXHUB has done the work of ensuring API definitions meet PSD2 regulations and STET and Berlin-Group standards, so they are transferable to all European jurisdictions. They will be closely watching the rollout of any other national legislation that might require additional elements added to common APIs.Enter content here
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