How is API growing in the banking and financial industry? What is its importance?
With the emergence of anytime and anywhere banking, the new focus of the financial sector is clear: to automate services and implementation of API’s in banks and financial institutions. While this new change has been quite slow to adapt, one must realise that sooner or later it needs to be adopted by everyone to survive in the digital era.
Application Programming Interface (API) or APIs, simplify software development and innovation by enabling applications to exchange data and functionality easily and securely
API or Application Programming Interface enables a 3rd party application to use a particular interface through which it can access a common set of tools or services. In banking, this means a bank can offer access to its custom services through dedicated APIs
API in banking refers to a set of protocols that makes a bank’s services available to other third-party companies via APIs. This helps both banks and third-party companies augment their complementary specialties and offerings more than they can provide to their customers by themselves.
The innovation of API and their involvement in banks and financial institutions helps the customer in numerous ways:
- Saves time on transactions
- Availability of services and products made easy
- Smooth facilitating of operations
- Simple, practical and effective problem solving
APIs allow financial institutions to provide the desired features to their customers and also automate identity verification and much more.
Celusion’s Financial API Gateway — A gateway for your service oriented architecture with 25+ pre-built microservices for regulatory and fintech services.
It has the most commonly used Fintech API pre-packaged, so that the company can focus on developing business solutions and revenue generation.
It has pre-integrated connectors to reduce the time to market. With various Out-of-the-box API features, It consists integrations of:
- Credit Bureaus – To fetch credit scores or history from leading bureaus
- KYC – Know your Consumer. Query regarding any consumer information
- Fintech – Integrate cutting-edge technologies like machine learning based OCR to extract data from PAN Card, Aadhaar Card, Passport and many more.
- AI based Matching capabilities – Name, Face, Address
- Bank Statements – Consume banking API to fetch bank statements.
- eSign – Facilitate Aadhaar based digital signatures using NSDL services that support both OTP or Biometric based eSign.
- Penny drop – Penny drop facility to confirm the customer’s bank account
Unified API management — that helps you manage all your external API integrations under one platform such as — Real Time Monitoring, Billing Reconciliation, Forward Compatibility and decoupled business applications from integration management.
The digital development provided by APIs allows growth beyond the limitations of a traditional service, which is of great help when you want to onboard new customers and increase the loyalty of those already on board.
The use of APIs in banks and Financial institutions will grow into a necessity with the upcoming demands of the customers and the competition in the market.
APIs are the ideal way to ensure growth and satisfaction of the customer’s needs.