A guide to digital banking in the IoT economy

How APIs enable an omnichannel, mobile-first strategy for next-generation banking experiences.

Today, nearly 70% of online adults in the U.S. bank on mobile devices. But only 43% visit bank branches at least once a month. Just as with retail, banking is moving away from brick and mortar and toward digital. With the Internet of Things (IoT) and widespread connectivity, this digitalization will take banking to new channels made possible by technology.

As a broader range of banking services become available on a variety of new platforms, consumers increasingly use a combination of traditional channels and digital touchpoints to bank. This multichannel approach is fueled by integration – with mobile apps, connected devices, and branch and ATM technologies.

What will enable this evolution? APIs as the connective thread that is digitalizing, integrating and securing the next generation of banking in the age of IoT.

Source: A Guide to Digital Banking in the IoT Economy, Copyright 2018 CA, Inc.

While banking services are now available on more channels and devices than ever before, the next wave of innovation is aimed at providing a “screenless” experience. Interacting with technology by voice or quickly authenticating on a device with a biometric provides an experience that is seamless and abstracts the user from the underlying technology. Whether on an ATM or through a connected device like a voice-based virtual assistant, screenless interactions are likely to become the dominant method of interacting with technology in the near future.

Connected banking

Consider the possibilities of a device like the Amazon Echo in the banking industry. Consumers can check their account balances and even initiate mobile transfers all by voice. The device is integrated with the user’s account via APIs that enable secure functionality with bank systems. Banking sessions are available on browser, mobile app, and connected device, and users can seamlessly transfer between the three, as we see in the demo below.

 

These new digital banking experiences provide significant convenience and value for consumers, but they expose the account holder and the bank to potential risk without adequate security in place. Multifactor authentication provides an additional security mechanism for banks to verify the identity of the user before the transaction is authorized. These step-up authentication methods include a one-time password, a biometric inputted to the mobile banking app, or – as the technology advances – voice recognition on a connected device. In the below demo, we see some advanced authentication methods at work for digital banking.

 

Learn how CA Mobile API Gateway enables the connected digital experiences shown in these banking demos.

Get your guide to digital banking

The future of digital banking is in integration and connectivity that enables banks to tap into IoT. But identity and access management solutions must keep pace with innovation to provide adequate security in these new environments.

To learn how you can build a secure, omnichannel banking strategy and deliver compelling digital experiences to customers, read CA’s new eBook: A Guide to Digital Banking in the IoT Economy.

 


Charlotte O'Donnelly
Charlotte is a Product Marketing Manager at CA, responsible for the go-to-market strategy for CA…

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