Application Programming Interfaces or APIs are evolving as the crucial enabler in banking and without doubt, confirmed a crucial element of new banking and risk-free digital transformation.
An API-led approach to system modernization will allow banks to collaborate with other fintech firms into adapting modern technologies while increasing safety and reduction in costs at the same time. It protects the integrity of the system by enabling secure and governed access. A
“API banking refers to a set of protocols that enables banks to offer their services to other fintech companies through a tech interface between software programs,” noted Francis Thairo, the Customer Advisor Financial Services at SAP during his keynote speaking slot at the 2021 Regional Fintech Summit.
Thairo further noted that leveraging API procedures will enhance the digital transformation journey of the FSIs and are therefore extremely crucial now, given the unprecedented times.
“APIs will also broaden the horizon for financial companies to access customer data and features to provide them with accurate resolutions,” he added.
While leveraging the APIs to help in product sharing and to innovate various partnership opportunities that help customers reap the best of financial services, he advised technology leaders to practice caution aligned with security procedures. This way, he notes, banks will continue their role as trusted financial advisors to their customers.
He also noted that SAP offers cloud-based solution to improve process automation, integration, and analytics across an array of processes while providing a modern user experience and comprehensive mobile support in the finance industry.
“The use of APIs for open banking is the best option in the current situation and will enable various innovative ways towards a secure banking experience,” he said in conclusion. “Adapting technological advancement in this era is the only way to stay ahead of your competitors.”