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The bank that is also an operating system
The accepted wisdom around fintech currently is that banks need to think of themselves as technology companies if they want to stay relevant and ride out the oncoming wave of disruption.
Few banks has take this message to heart as much as Germany’s Fidor bank which just unveiled its new banking platform: FiderOS.
Broadly speaking, this so-called bank operating system is a way Fidor bridging the gap between traditional banking and new fintech-enable banking.
The platform uses something called APIs (application program interfaces), these are similar to kinds of protocols that let you use popular internet services, like Facebook or Google, with third party services. Banks have been making limited use of APIs for a while.
But Fintech blog Finovate explains that banks like Fidor are at the vanguard of an API revolution in banking. Why is this important for banks? In short, it is helping banks stay relevant by connecting, and not competing with fintech.
These protocols are not only at the core of the next wave of fintech innovation but are key to linking the old and the new. The flexibility afforded by the cloud computing and APIs offer banks a way they can apply fintech solutions that enhances their ongoing operations without the massive infrastructure cost.