The digital world carries within itself a range of acronyms that help in digitizing business. Among these are the Application Programming Interface (API). A major system integrator, APIs are invisible to the average user, who only sees the interface of software and applications. But APIs are very present in our daily lives – even more than we realize. This “Demystifying APIs” series will show not only what they are, but their practical applications and how they are revolutionizing some markets.
READ MORE: What are the different types of APIs?
What does an API do?
APIs integrate systems that have completely different languages. Without APIs the work is harder, as it is necessary to install several resources compatible with each of the systems that need integration, causing a delay in the production processes of a company.
Data security, ease of exchange between information with different programming languages and monetization of access are some of the benefits of this promising technology of market digitization. Besides, it allows application-specific functionality and tools to be used in others.
How are different markets using APIs?
With increasing demands for interaction with consumers across different channels, companies are in the rush to implement next-generation technologies. Financial institutions, for example, are increasingly striving to be at the pinnacle of digital transformation by promoting mobile channels and internet banking as points of contact with their account holders anywhere, anytime. Because they have a lot of critical information in their internal systems, banks lack a secure yet agile integration tool. That’s where the APIs come in.
The demand to innovate with technologies that could upgrade the security of the institution is a turning point for utilizing the integration interface and boosting banking channel options. Therefore, using APIs adds value so that transactions can continue to work without jeopardizing customers.
For example, their use allows for the creation of a specific application to consult only debit customer data or the identification of account holders who have a very high positive balance in their accounts. Some applications and software of various types are built only by the standards and specifications provided by the APIs. Developing lighter account holders for applications is easier as systems and data integration is faster and more assertive. Applications that can use this interface include balance, statement, checking account information, and card information.
But creation alone is not enough. Therefore, the tool also provides management of the entire interface, which is the centralizing piece that allows the evolution of banking channels, integrated governance and complete view of the entire bank system.
It is a fact that technology will always be renewed, new products will appear to be implemented and will be constantly updated. What differs, in this case, is that APIs are the reality of the digital transformation of banks. And they are ready to integrate and adjust to today’s and future trends. Because there should be no limits to data integration.
Why API integration is critical to an open banking strategy.