As a bank/financial company, are you looking to create an omni-channel experience for your customers? You can now deliver it by using the Application Program Interface (API). Similar to the Internet, which opened up the potential of connected computer networks, APIs are driving a new wave of innovation that focuses on sharing services
While APIs are transforming business processes across multiple industries, companies in the BFSI sector stand to gain the most out of it. It’s because, as a BFSI company, you can use the technology to address the key issue of integrating your disparate systems in one seamless environment.
How API-fication of Banking is driving innovation in BFSI sector
APIs have evolved into one of the most vital tools for businesses as they offer the critical capability of one application program to be used by another. By pulling on internal and external resources together, they simplify innovation by enabling applications to easily exchange data and functionality, much more securely and seamlessly.
As a bank, you can use APIs to share your data and programs with 3rd party providers (TPPs) in a secure way while also maintaining control over your customer data, making your apps more conducive to profitability. You can use the technology to create applications and services that are beneficial for your customers and also improve your financial transparency and efficiency. Here’s how BFSI companies can focus on creating the API backbone and leverage its power to be a part of the connected ecosystem.
Leveraging the power of APIs for a seamless connected environment
APIs now have a key role to play in providing innovative platforms for BFSI companies to create new and customized services. Changing regulatory mandates are helping banks to embrace open banking with freedom, and many of the current and future banking applications are all set for API-fication.
As a bank/financial company, you can use APIs to introduce new and better Fintech products that are more relevant to your customer needs. For instance, a leading private sector bank in India enabled an API for a loan-comparison app, which potentially allowed it to acquire new business from customers shopping for new loans. Banks, Insurance and Financial Institutions are now turning towards connected ecosystem led by account aggregation all powered by APIs. With APIs coming into the picture they are playing strategic role in curating new products like and are providing benefits.
You can also enjoy a range of added benefits such as
Significant cost reduction
Conservation of time and effort
Improved regulatory Compliance
Minimal risk exposure
Enhanced customer experience
Matching customer-demand by delivering world-class experiences
Through API-led connectivity, you can bring your data and services onto a single platform that enables broader consumption by your business. You can then methodically design and use manageable APIs for specific purposes. Each of these APIs can be used to harness various business functions such as
Opening up new revenue streams
Optimizing existing products
Extending customer reach and value
Easy Integration of backend data and applications
Efficient implementation of systems and operations
Extracting valuable insights to make better business decisions
Moreover, by using APIs you can move into markets you may never have considered. For instance, as a bank, you would be able to expand your revenue options by joining forces with other third-party enterprises. Using a platform built on a flexible API-led strategy, you can create new value chains where each link focuses on what you do best.
How to use APIs to transform your finance business
As business today is increasingly dependent on how well you connect to external party apps, services, and devices and, APIs have become the key to scale, foster innovation, and reach a wider audience. As a bank, you can work with leading IT companies with expertise in digital transformation to develop an API-led architecture. For instance, NSEIT helped one of India’s leading capital market players to accelerate innovation by implementing an API sandbox. The interfacing enabled third-party applications to access its common tools, services, and valuable assets. Thus, even you can use APIs to be a part of a connected environment quickly, conveniently, and cost-effectively.
Authored by: Victor Johnbritto