Application programming interfaces (APIs) make the modern digital world go round. APIs are the glue that holds most software together in 2021.At the same time, open APIs have enabled banks to realise multiple competitive advantages, including the ability to build enhanced offerings, improve customer engagement and loyalty, and create new digital revenue channels. They have also opened the way to building smart partnerships with third parties. This also gives businesses greater agility in terms of maintaining, upgrading, and scaling their software, and it lets them tap domain-specific expertise.
APIs enable companies to more easily build products and services that would otherwise take too long to build. With this developers can use these APIs to more easily access business-critical information and focus on other priorities instead. But, realising the full potential of APIs in banking is far from being achieved. Determining future priorities must go beyond compliance.
In a world where data is currency and a customer-centric experience is the ultimate option, traditional lenders are falling behind in comparison to leaders in technology. APIs help them to achieve integration and deliver new services faster. Secondly, the API economy has empowered companies to be more successful - whether it’s through leveraging third-party APIs to improve business processes, attracting and retaining customers, or producing an API as a product. Using APIs to leverage existing services helps you accelerate product delivery.
Instead of building everything for your application, you can focus on building the truly innovative features. Managing everything - APIs, backend systems, infrastructure, deployment - is challenging. You need to have visibility into what’s being used and where. If you miss something, it could cost you. The API risks are high. Finally, in today’s API economy, you either need to disrupt - or risk being disrupted by your competitors.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
