NXTsoft: Connecting fintechs to US FSIs through APIs

By William Girling
Randy Goggans, Partner, describes how NXTsoft is bridging the gap between fintechs and US-based financial institutions with API technology...

Founded in 2016 and based in Birmingham, Alabama, NXTsoft has established itself as a crucial partner for financial institutions, banks, and credit unions alike. Stating that it is “serious about data done right”, the company brings together security and connectivity using cutting-edge technology, such as APIs.

At a time when financial service institutions (FSIs) globally are seeking ways to maximise their profitability and enhance revenue opportunities, entering the US banking market can be a lucrative move. However, Goggans explains, it can be a difficult market to negotiate alone.

“Our market is very different from the one in Europe, for instance. The US has over 10,000 institutions that primarily outsource all of their operations and transactions, as opposed to keeping them in-house.” Furthermore, prospective companies are likely to encounter challenges entering a relationship-based sales market, something the team at NXTsoft, with a client portfolio of 1,500 bank and credit union customers, has managed to accrue over a number of years.

Enhancing data sharing

This isn’t the only obstacle; finding a way to adequately connect data between parties is also a significant challenge. However, it’s a problem that NXTsoft’s software platform was designed to solve. “We give the banks the ability to connect their data to any third-party fintech solution because we've already got pre-established connections to all the core systems in the US,” says Goggans. “When a bank buys a product, they hire NXTsoft to step in and take the data from their core system and map it to the fintech solution that they have purchased.”

The company achieves this through API offerings like OmniConnect, which guarantees security as well as enhanced connectivity. “We're able to only get the fields necessary to run the application, and we don't host or store any data. In the US, this gives a financial institution the ability to buy any product and not worry about connectivity issues with a third-party, as NXTsoft has already connected to all the underlying core systems.”

Essentially, NXTsoft can perform all the “heavy lifting” for its partners; simultaneously allowing banks to “buy from anyone” and fintechs to “sell to anyone.” It does so effectively and - most importantly - much faster than legacy processes would have allowed (i.e. weeks instead of months). 

Cybersecurity and culture

In addition to its APIs, NXTsoft also has a myriad of security solutions for both finance and non-finance customers. Its flagship solution in this area is ThreatAdvice vCISO or ‘Virtual Chief Information Security Officer.’ 

“Cybersecurity is a big issue right now, and we’ve got around 2,500 security clients ranging from government to healthcare,” states Goggans. “A lot of companies have realised they need a CISO, but many don't have the resources to hire that person. So NXTsoft is providing a 24/7 virtual equivalent that’s able to identify and respond to threats quickly, therefore saving money and potential damage.”

Recognising that an organisation’s culture is usually just as important as technology when it comes to protection, Goggans adds that ThreatAdvice Educate by NXTsoft also offers 200 “micro classes” - short cybersecurity-based videos - to educate employees appropriately.

Finance’s digital transformation means that the old boundaries and restrictions to entry are no longer as restrictive as they used to be. NXTsoft is equipped to tackle the pain points of fintechs external to the US and knows how to drive success, whether buying or selling.

“We're looking for fintech partners, both international and domestic, that are seeking to take the burden of connectivity away,” concludes Goggans. “If your aim is success in the US finance market, I would say we’re the perfect fit.”

Image source: NXTsoft

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