FinTech Magazine - December 2021 | Page 47

API trends in banking
BANKING

API trends in banking

financial market analytics and trading insights , to enhance decision-making .”
Noorani now believes fintechs have the upper hand . “ From analytics , AI capabilities to cloud computing and payments services , fintech companies have so much to offer traditional banks ,” he says .
APIs have transformed the partner network space because they have simplified the act of diversifying services , products and solutions . Application programming interfaces ( API ) streamline programming and are defined as ‘ low code ’, because they provide all the required building blocks , which are then put together by the programmer .
Paul Crerand of Mulesoft offers his thoughts and a case study on the use of APIs in banking . He says , “ APIs will emerge as the preferred solution for building partner networks , acting as a central mechanism for enabling the integration that banks require . We ’ ve already seen how this works in practice .
“ For example , UK-based SME-lender Allica Bank uses APIs to connect its apps , data , and devices , so it can quickly bring together all of its digital capabilities and plug in those of other organisations to create market-leading experiences .
“ Allica ’ s brokerage portal has been rated the best on the market by its customers , because its API-led approach enables it to draw data from a variety of external sources to speed up the overall lending process dramatically .”
Advantages of partner networks The pros to partnering up with an expert operative are numerous , and , says Hack , provides three , distinct advantages to banks . These are :
• Reducing risk and complexity : By relying on a tried and trusted technology or product that is already running and operating successfully elsewhere you can remove a whole lot of uncertainty from the decision making process for or against a project .
• Faster innovation : A core principle of the modern economy is the separation of tasks and the efficiency gains we derive from it . By focussing on what you ' re good at and getting someone else to do the other bits , everybody can play to their strengths and bring new propositions to life or launch a new product faster than otherwise possible .
• Developing outside the box : Banks ' legacy systems are hopelessly convoluted and
fintechmagazine . com 47