Better Late Than Never to the Fintech Party
Oracle has finally realised that it wants to hang out with the cool FinTech kids on the block, having recently announced the release of its Oracle Banking Payments application programming interface (API) service.
Oracle’s move recognises the value of offering better ways for its banking clients to collaborate with FinTechs and other third parties.
The new API service is based on the ISO 20022 standard, which is a messaging standard for electronic data interchange between financial institutions. Already widely used in financial services, ISO 20022 facilitates easier ways to initiate and receive payments by enabling financial institutions to send each other detailed payment information.
The API service will help Oracle’s banking customers compartmentalise payment messages, message transformation and payment processing, as well as collaborate with FinTechs and third parties to curate new business models.
Over 500 banks across 140 countries currently use Oracle’s software to support payments.
Oracle’s announcement reflects the need for banks and traditional financial institutions to respond to customer demand for fast and easy payments as well as the entry of FinTechs into the market.
Olivia Coburn contributed to this article.