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BizReport : Internet : May 30, 2019

Expert: How banks can build stronger API

API strategy may have been on the back burner for banks and other financial institutions, but according to one expert now is the time for API strategy to come to the forefront. That, because more consumers are choosing to bank and invest and even apply for loans via online channels. Here are three tips to improve banking API strategies.

by Kristina Knight

Make API strategy part of cloud strategy

"For smoother integration and greater transparency, banks need to make their API initiatives a part of their overall cloud strategy. Moving to the cloud provides enormous flexibility, and APIs make banking services more consumable for businesses and partners," said Lisa Shields, CEO & Founder, FI.SPAN. "The combination of the two enables banks to more easily partner with business customers how they want, and it provides cost and operational benefits for both. Additionally, it means the next time a business wants to partner with a bank or integrate banking services into their systems, there will be a much shorter onboarding process. Combining APIs and modern cloud can improve efficiency across the board for banks and businesses alike."

Make API strategy part of the customer journey

"Banks can't assume that just because they make a service available through APIs, it will increase uptake. They must weave in the customer journey and make it relevant and easy-to-use for businesses. One example of a useful service includes enabling corporate customer to pay bills directly in their ERP or accounting system via a simple companion application they can download. Making services more accessible through APIs helps round out the banks' offerings to give businesses everything they need to successfully manage their financials," said Shields.

Make security part of API strategy

"Security has always been a top concern for banks, but the kind of security they're prioritizing is changing -- cybersecurity. In an age when data breaches have become almost a norm, it's important for banks to have advanced security measures as part of their API strategy when connecting with businesses," said Shields. "Examples include SOC compliance, encryption and adhering to data access standards like OFX and Durable Data API (DDA). Not only does this help with regulatory compliance, but it protects banks' customers' valuable data against hackers."

Tags: API tips, API trends, bank website tips, banking API, FI.SPAN, finance API, financial website tips

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