New Ozone API tool helps US banks calculate cost of API infrastructure build

Ozone API has launched a cost estimation tool designed to help US banks accurately assess the cost of building and maintaining their own API infrastructure.

The launch is in response to the final Section 1033 rulemaking under the Dodd-Frank Act, which gives US consumers the right to access and share their financial data.

With compliance deadlines on the horizon, many banks are now evaluating the investment required to meet the new data-sharing obligations.

Ozone API’s ‘Build It Calculator’ uses a range of inputs, including project duration, hosting costs, the value of a bank’s deposits, and staffing needs, to estimate the true cost of developing an in-house API infrastructure.

Drawing on Ozone API’s experience delivering Open Banking platforms globally, the model also factors in hidden long-term costs, such as annual maintenance, which can amount to half of the original implementation spend every year.

The calculator includes estimated salary costs for internal staff, calculated according to the proportion of time they would need to dedicate to the API build, deployment, and support.

Already validated by US financial institutions, the tool offers banks a clearer picture of what Open Banking compliance may require, both in terms of resources and recurring costs.

According to Ozone API, banks can receive a tailored estimate in a single call, helping them plan initiatives that often scale to eight-figure investments.

Eyal Sivan, general manager, North America at Ozone API

Eyal Sivan, general manager, North America at Ozone API, said: “Open Banking technology brings huge benefits to financial institutions as well as businesses and consumers, but building API architectures does require significant investment.

“We are making this tool available to help banks understand the scale of the undertaking and effectively prepare to comply with Section 1033.”

He added: “It’s crucial that banks are armed with accurate data to help them make the best decision, whether that is to build their own infrastructure or work with partners that can offer off-the-shelf or bespoke solutions.”

The new tool is now live in the US, with plans to expand into additional markets globally, including the UK, MENA, LATAM, and APAC regions.

Ozone API is an Event Partner of Open Banking Expo USA. Click here to find out more about partnering, exhibiting and register to attend.

Further reading: Ozone API works with cloud consultancy to enable US FIs to adopt Open Banking