iPaaS for the Digital Banking Industry

With new applications springing up daily, millions of people worldwide now depend on technology to manage their day-to-day living, including financial matters. Mobile banking is one of the most significant ways technology has created a win-win situation for all banking stakeholders. By the end of this article, you should be able to answer the questions, what is iPaaS and what are the benefits of iPaaS to banks?

What is iPaaS?

Many online banks in Canada and worldwide use many cloud data daily, which can cause business processes to be fragmented across different applications. It can be time-consuming to attempt to move these data from one application to another. So, to automate business processes, seamlessly exchange data, and avoid manual errors caused by transferring data across different systems, banks need integration service.

This is where the Integration Platform as a Service (popularly known as iPaas), comes into play. It harmonizes the flow of data between applications to streamline business processes. It works by enabling the execution, development, and governance of several integration services. This includes cloud integration, data integration, application integration, API management, B2B integration, process integration, and service-oriented architecture (SOA) integration.

In simple terms, iPaaS in banking refers to using a single platform to link banks with the latest innovations in the finance industry to improve their customer experience and progress with the modern customer-centric age we live in.

How are banks using iPaaS?

Banks use iPaaS in numerous ways. For one, they use it to support the pace of customers and improve efficiency across all boards. Here are three main ways banks use iPaaS:

  • For efficient data monitoring: In today’s business world, data is vital as it influences many business decisions. For starters, depending on the integrated platform in use by a bank, iPaaS also provides business intelligence solutions and utilizes the data for better decision-making (for example, for personalized customer service). Furthermore, the iPaaS platform helps ensure data uniformity. It monitors the integration flows of data and automatically reports irregularities. This way, the bank’s IT department or iPaaS providers’ integration experts can quickly fix them.
  • For connectivity management: Irrespective of communication protocols, iPaas can connect any application and system. This is because the typical iPaaS comes with inbuilt connectors and adaptors that enable connections between different environments. This includes cloud-to-cloud, on-premise-to-cloud, and on-premise-to-on-premise. In addition, it has a complete lifecycle API management that speeds up links across bank applications.
  • For swift data sharing: Data integration might seem like an easy feat, but it’s easier said than done. It remains the basis of integration solutions. Banks use iPaaS to communicate and enable data transmission between different data silos regardless of the data’s standards and formats. The integration solution goes further to handle data translation, transformation, enrichment, and validation.

Benefits of iPaaS to Banks

Reiterating back to the main gist of this article which is, the benefits of iPass to banks. Here are a few ways banks benefit from the use of this integration solution. Bank management can improve their workflow as iPaaS enables SaaS applications and on-premise systems to share data. It automates routine data entry to save time on mundane issues, increase efficiency and productivity.

  • It saves operational costs: With online banking and chatbots in full effect, thanks to iPaaS, banks can save operational costs.
  • Aids decision-making: The right iPaaS solution vendor can provide banks with real-time data to study customer analytics, measure their experience, and make decisions accordingly.
  • Improves workflow efficiency: iPaaS benefits both banking management and the customers. With an online bank, customers no longer have to waste time on bank queues or at the ATM to make transactions. They can use chatbots to resolve simple issues from the comfort of their homes.