“Klarna Kosma is an API that other companies can integrate in their apps and services. These companies can leverage Klarna’s API to access account statements, initiate payments, fetch banking information and refresh this data regularly.
Klarna is better known for its “buy now, pay later” products. In some countries, Klarna lets customers connect to their bank account to give spending insights and establish a sort of credit score before letting customers buy something in multiple installments. With today’s move, Klarna is opening up its in-house product to other customers.
In addition to Account Information Service (AIS), Klarna Kosma customers can also programmatically initiate payments with compatible banks. That has always been the long-term promise of open banking. If payment initiation takes off, it could replace card payments or e-wallets like PayPal. We’re not there yet, but Klarna definitely wants to have a product ready if we get there.”
“As part of its efforts to stay on top of all things digital, Truist opened a 100,000-square-foot innovation and tech center. Some of the things the bank is getting serious about, according to Case, are cloud architecture, data and analytics. It’s even built an “API toolkit and playbook” that he describes as “very important” to the institution.l
And last but not least, Kaleidoscope, a fintech driving “education-based philanthropy,” raised a $10M Series A round to connect sponsoring organizations, donors and applicants. The startup says it has facilitated over $370 million in scholarships and grants over the last two years.
And in another example of fintechs partnering with banks, Plaid announced an “open finance relationship” with Frost Bank that will bring data connectivity to the institution’s nearly 400,000 customers located throughout Texas. Or in other words, Plaid wants to help Frost customers “securely and easily” integrate their accounts and finances online. This is a prime example of a bank recognizing that technology can make the lives of their customers easier, and doing something about it.”
“Started earlier this year, the remote-first Pagos is building a data ‘platform’ and API-driven micro-services that it says can integrate with any payment stack. The end goal is to drive better performance and ‘optimization’ of a business’ existing payments infrastructure.
In the short term, Pagos is offering services such as ‘immediate’ payment data visualizations, automatic notifications on payment trends or problems and up-to-date bank identification number (BIN) details to manage customers and track costs. Looking ahead, the company is planning to offer network tokenization and account updater services.
‘Pagos is led by two of the most accomplished payments product experts in the business, and their relationships, domain expertise and firsthand experience with these pain points is incredibly valuable,’ he said in a written statement.”
“In Forrester’s report, ‘The Top Emerging Technologies in Banking in 2021,’ multiple forms of AI were on the hot list, including machine learning; deep learning; natural language understanding, generation and processing; and even ‘computer vision.’ The report indicated that financial institutions ‘are doubling down on the role that AI will play in digital transformation.’
‘There’s still some homework they need to do before they can use APIs in a more comprehensive, strategic fashion, as opposed to tactical deployments,’ says the analyst. Multiple groups have been working to set standards, but in the meantime, in simple terms, it’s somewhat like having house with multiple kinds of electrical outlets.”
“In Cornerstone’s What’s Going On in Banking 2021 study, the top five technologies for 2021 are: 1) Digital account opening; 2) Application programming interfaces (APIs); 3) Video collaboration; 4) P2P payments; and 5) Cloud computing.
Nearly half—44%—of banks and a quarter of credit unions expect to add a new or replacement consumer digital account opening system in 2021.
One in four financial institutions are planning to invest for the first time in this technology in 2021. Going into 2020, only 20% of banks and credit unions had already deployed these tools—heading into 2021, that percentage is roughly 30%.”