Open API and AI technology - shaping the future of banking services

Currently, the banking industry is transforming strongly thanks to Open API (Open Application Programming Interface) and AI (Artificial Intelligence) technology. This is not only a technology trend but also the key to help the banking industry enter the Open Banking era, thereby improving customer experience, optimizing internal operations and developing sustainably in the future.

Open APIs can be described as a technology solution that helps banks securely and discreetly share data and services with third parties, from fintech companies to businesses. This allows for the integration of multiple services on a single platform, creating transparency and convenience in providing banking services to customers, from payments and loans to investments, insurance products, and personal finance.

Through APIs, banks can easily collaborate and connect with various third-party services such as fintech companies, application developers, and other platforms, providing customers with personalized financial solutions like smart payments, quick loans, online expense management, and savings while ensuring compliance with international security standards. This fosters the development of an open, intelligent financial ecosystem that serves a diverse range of customers conveniently and quickly.

For example, Orient Commercial Bank (OCB ), one of the leading banks in the implementation of the Open Banking model, boasts a solid foundation of over 200 Open APIs, a powerful processing capacity averaging over 6 million transactions per month, and a wide range of services from basic to specialized operations ready for integration. Meeting the diverse needs of partners across various industries and segments, any business needing to manage internal finances or provide financial services to customers can connect with OCB through its Open API platform.

In practice at OCB, Open Banking has helped businesses reduce manual operations in payments and invoice reconciliation by 100%, shortening transaction processing time from 15 minutes to 1-2 seconds and cutting accounts receivable reconciliation time by 80%.

These impressive figures are clear evidence that the application of Open APIs not only improves the performance, flexibility, and speed of banking services but also optimizes costs, enhances operational efficiency, and contributes to improving the competitiveness of organizations and businesses in the current digital transformation context.

With over 200 Open APIs, OCB is ready to meet the diverse needs of partners from various industries and segments.

Simultaneously, artificial intelligence (AI) is considered a "golden" technology for every bank and is currently becoming a powerful assistant, transforming traditional models and operating methods into smart digital banks. Not only does AI help banks analyze customer data to create personalized marketing strategies, but it also helps improve service quality through intelligent chatbots, automated financial advice, and fraud detection. By applying AI to financial services, banks can minimize errors, increase accuracy, and enhance customer satisfaction.

According to a report from McKinsey, AI will help banks cut operating costs by 20%, increase revenue from personalized services by 30%, and banks that apply RPA in customer service see customer satisfaction levels increase by up to 20%.

Currently, OCB is applying a range of AI technologies to its operations, such as machine learning for fraud detection and the ability to detect unusual transactions in 0.1 seconds. This allows for the near-instantaneous prevention of fraudulent transactions, minimizing financial losses and improving customer security. Simultaneously, OCB utilizes Natural Language Processing (NLP) technology – a powerful tool that assists the bank in processing and analyzing large amounts of unstructured data from sources such as social media, customer reviews, and news articles.

Through NLP, banks can gain valuable insights into customer psychology, market trends, and potential risks. NLP can also be used to automate certain banking services, such as customer service chatbots, 24/7 virtual support handling 80% of basic customer requests, and fraud detection systems.

In particular, OCB is one of the banks heavily investing in Big Data analytics technology to help optimize processes, minimize risks, and improve customer service; and Robot Process Automation (RPA) technology to process loan applications and KYC five times faster.

“Combining Open API solutions and AI technology creates a flexible, modern banking environment that easily adapts to the changing needs of customers. Today's customers demand smart, user-friendly, and personalized financial services, and these technologies will help banks meet those needs quickly and efficiently,” said an OCB representative.

Reportedly, by the end of 2024, the number of customers connecting to Open API at OCB increased by 150% compared to 2023, and the bank also aims for a 200% growth in the number of corporate customers using and applying the Open banking model in 2025.

In addition, OCB is currently building a research and development center to further develop Open Banking products, applying advanced technology and algorithms to analyze data from Big Data. This helps the bank better understand customer behavior, preferences, and needs, thereby building and adjusting personalized products and services .

Source: https://nhandan.vn/open-api-va-cong-nghe-ai-dinh-hinh-dich-vu-ngan-hang-tuong-lai-post869428.html