September 29, 2021

Fintech future with Open API

Fintech future with Open API

Fintech APIs (Application Programming Interfaces) radically change the financial industry by active implementing of new applications, services and business models.

What is an API for Fintech?

APIs in the context of financial technology provide interoperability between the various systems involved in financial transactions based on data exchange.

The popularity and rapid development of APIs in fintech is driven by the benefits and high efficiency of use for industry sectors, including payments and e-commerce, banking, BaaS, accounting, financial marketplace and all parties involved:

Finance institutions
  • Interaction with third parties in order to expand the range of services and increase competitiveness;
  • Simplification of the payment system using customer-preferred methods;
  • Connecting consumers, commercial websites and credit companies;
  • Connect to third-party APIs to provide extra services;
  • Reducing the time and resources spent on data processing.
Users
  • Possibility to transfer funds.
  • Online shopping and personal banking transactions;
  • Intuitive and clear payment system;
  • Expense tracking capabilities and investment recommendations;
  • Enabling to complete transactions without leaving the necessary website;
  • Meet consumers’ evolving expectations for digital services and capabilities.
Developers&Support
  • Quick creation of financial applications;
  • Financially-effective business;
  • Ensuring seamless customer service;
  • Quick and clear transactions;
  • Rapid response to market changes and customer needs.
5 advantages of using Fintech APIs
  1. Easy integration of components for creating a new or improving an existing offering.
  2. Time and cost savings by using existing functionality/reusing components.
  3. Quicker go-to-market launch for new solutions.
  4. More rapid development of solutions.
  5. Ability to focus on innovation instead of routine development tasks.

Criteria for API selection

When choosing the best APIs for your organization, you need to evaluate factors such as performance, ease of use, usage patterns, customer needs, business strategy as well as: availability of a single interface, standalone client-server architecture, ability to perform operations without static data, treating each request as a new one, implementation of resource caching in specified cases, use of multi-tier system architecture, allowing a server to add more functionality, flexibility and usability.