Banks Shouldn’t Reinvent the Wheel

September 9, 2016

4:40 pm

We’ve added “-aaS” (“as a Service”) to so many functions and products, from Software to Platforms to Backend (there’s some joke to be made here, but I’ll refrain…). If you started building products or services in the last few years (like me), you might take for granted that you don’t have to reinvent the wheel every time you want to access basic infrastructure and functionality; you probably rely on Amazon Web Services for hosting, and use a CRM in the cloud to keep track of your customers.

But when it comes to financial services, building products and services is still largely on-premise, and most product managers and developers are reinventing the wheel.

Let’s say you have a great idea for a new savings app based on behavioral economics. To build an minimum viable product (MVP) and get your first 100 users on it, you’ll have to have a mechanism to move money and you’ll have to be compliant with KYC and AML regulations. Neither are easy tasks, and neither one is core to your product or competitive advantage. They’re simply table stakes for getting off the ground.

1*-9PRsG_UrB2UmUUF7AZ1GA

APIs are the way to make viable financial ecosystems and the key to making Financial-Services-as-a-Service possible. A variety of well-designed, easy-to-integrate APIs will let you launch faster while staying focused on your product and customers. You may integrate Plaid, Dwolla, Twilio, or some combination of the three. Think of the developer hours you’re saving by not building those functions yourself.

On the other side, big financial services companies are also getting into APIs, and for good reason. They don’t just want to use the services, they want to be the platforms upon which those services are built and distributed…[read more]

This was originally published on Medium

This is a preview of “Banks Shouldn’t Reinvent the Wheel”. You can read the full post here by visiting Techstars.

This article is courtesy of Techstars, the best global ecosystem for entrepreneurs to bring new technologies to market. From inspiration to IPO, Techstars empowers the world’s most promising entrepreneurs throughout their lifelong journey by providing a global ecosystem made up of tens of thousands of community leaders, founders, mentors, investors, and corporate partners.

Did you like this article?

Get more delivered to your inbox just like it!

Sorry about that. Try these articles instead!

Laura Spiekerman is the cofounder and CRO at Alloy, which offers an identity and onboarding API for financial services companies. To send feedback, questions, or simply connect with Laura: Twitter, LinkedIn, or email [email protected]

  • Shares

Leave a Reply

  • (will not be published)
Startup_Mixology_300x250
.ME Tech.co search 300x600

Get personal with .ME

Make your domain name as unique and memorable as you are. Get creative, get .ME!