DIGITAL BANKING
In recent years, the global banking sector has faced a technological restructuring as financial institutions navigate the integration of application programming interfaces( APIs) into their core operations.
These digital connectors, which enable different software systems to communicate, are reshaping traditional banking models and creating new market dynamics across the industry.
Moshe Winegarten, Chief Revenue Officer at payment services provider Ecommpay, has witnessed this transformation across multiple sectors.
His 18-year career spans the development of the UK’ s first instantissue prepaid Mastercard, the European expansion of Visa Direct and the growth of payment processor Checkout. com into a major financial technology provider.
Banking Service Specialists Challenge Traditional Models Today, market developments are forcing a reassessment of conventional banking structures.“ We are seeing the birth of specialist‘ banking as a service’ banks and even embedded finance banks which have built their models from the ground up,” Moshe explains.
“ They have the technology as well as the processes to do the due diligence for a digital user experience.”
This evolution marks a departure from assumptions about traditional banks’ digital transformation.
“ High street banks will retain their position delivering credit and savings services, albeit the presence on the high street will continue to be eroded”
MOSHE WINEGARTEN, CRO, ECOMMPAY
“ High street banks will retain their position delivering credit and savings services, albeit the presence on the high street will continue to be eroded as the move to online / app based banking accelerates,” Moshe adds.
“ The high street banks are just not equipped – both technically and with their processes – to deliver API services. It’ s not their core business – and doesn’ t need to be.”
Legacy Systems Present Integration Hurdles for Banks The technical challenge of connecting modern APIs with decades-old core banking infrastructure remains substantial. Most major banks operate systems built on COBOL programming language from the 1970s and 1980s, requiring careful consideration of integration methods.
46 April 2025