How Financial Institutions & Banks Can Leverage Fintech APIs To Power Innovations

by Henry S. Growing Your Business Has Never Been Easier

Know how an explosion of new business models and applications have come by fintech APIs, and how you can leverage financial & accounting APIs to power your business.

Adopting fintech APIs is making a big impact on the fintech sector and driving an explosion of new financial applications, financial models, and services.

With the power of APIs, different applications and systems like financial transactions, including banks and credit unions, 3rd party service providers, web portals, and clients can interact with each other and enable the data accessible among themselves.

APIs are enabling today's most famous apps for hotel booking, stock market, weather check, and performance based on real-time data access. Whereas, the use of APIs was at a slow rate in the beginning for traditional banking institutions as they were relying on the customers' data primarily.

However, during the past decade, some nations in Europe and Asia Pacific formed laws considering the need of creating and exposing APIs for banks, allowing 3rd parties to access information with client consent. This helped in spreading the open banking technology globally which results in a new generation of advanced and dynamic companies fueled by FinTech.

The rising power of APIs in fintech is not hard to understand as it is creating its dominance continuously in the FinTech sector. So, financial institutions and payment gateways need to hook up with 3rd parties to multiply their services and stay ahead of the competitors.

The advantages and disadvantages of Fintech APIs

It was very difficult, complex, and costly to develop financial apps and services before fintech APIs came into use widely. Simply uniting a platform with user bank accounts required tech teams to establish an integration for each financial party involved.

Today, with providers across the financial sector releasing their APIs, you can easily unify factors to produce a new offering or add potential.

Yet, fintech APIs carry their difficulties. There are some credit unions and fintech institutions that have legacy systems but are not made for quick and easy API integration. And existing concerns around the potential for data fraud make safe connections high-priority.