API's are Revolutionizing the Banking Sector to Ensure Safety

By CIOReview | Thursday, June 13, 2019

FREMONT, CA: The landscape of payments continues to undergo significant domestic and global changes. Managing the effect of new technologies, faster payment projects, and enhanced global regulation have become a balancing act of moving components for stakeholders across the sector while attempting to stay customer-centric. Enforcing standardized Application Programming Interfaces (APIs) is becoming progressively crucial for financial services companies as they seek to deliver differentiated digital experiences and customized client services faster and more effectively.

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Financial institutions profit from APIs and the cloud. The former enhances access to banking facilities, while the latter offers more flexibility. Together, cloud-based APIs have an even more significant beneficial effect on financial institutions. Organizations that combine their API and cloud strategies can quickly implement customer-facing innovations using inner or external resources rather than spending years developing solution alliances. Smarter yet, any organization that wants to incorporate the services of a bank into its schemes can enjoy onboarding quicker. Previously spent time and money to figure out how new services can be used to address more urgent problems.

Breaches of cybersecurity have become all too prevalent. But while each sector has to deal with cybercrime, none is targeted more frequently than financial services. As per IntSights, a quarter of all malware attacks were targeting financial services organizations in 2018. It is essential for the banks and credit unions to consider API-appropriate safety measures as part of their strategy during an age in which information breaches occur at an alarming pace. Trust in information privacy and safety is an essential consideration for many customers when selecting a bank.

APIs ' excellent potential is to provide higher flexibility in consumption, and the services of a bank can be integrated, into apps and experiences from third parties. But to realize this potential, customer authentication and data protection procedures need to develop from taking into account the effect of third-party and multi-party service delivery. Some organizations work on the premise that an API is all it takes to drive interest in a new service and eventually boost its use. However, a closer look shows that there is more to do a service known than just linking it to an API.

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Many companies have outlined their API approach; few have taken the required measures along the manner to promote trusted delivery of financial services. Organizations can remain one step ahead of the contest by combining API projects with their cloud approach, safety "API-fying" and client journey consideration.