None have managed to come up with a strategy that can keep themselves as relevant and as innovative as start-ups.
In the quest for innovative financial services, traditional banks have tried to bring themselves closer to the fintech start-up ecosystem through acquisitions, sponsorships and other support programmes, but with limited success.
But Nedbank has finally nailed it with the open banking concept by releasing data for innovation. Earlier this week, Nedbank launched its version of an open banking platform through a self-service portal that enables companies outside of Nedbank to create financial products based on the Nedbank platform.
Nedbank’s Application Programming Interface (API) platform, API_Marketplace, is the first in Africa to provide a variety of APIs that meet the technical standards for open banking. This move by the bank makes it the first financial institution in South Africa to release data for the purpose of enabling innovation and serving bank users.