Application Program Interface, otherwise known as API technology, is beginning to lead market innovations by enabling greater customer service, progressive product design, and tailored services that meet the needs of consumers. API technology can empower your finance brand to anticipate the needs of customers, enabling you to be proactive in your content and product strategy rather than reactive. By providing an easy way to access key customer data and enabling greater connectivity, API tech shouldn’t be an area your finance brand hesitates in implementing. So, how does API technology work and how can it benefit your finance brand?
How does API technology work?
Simply put, APIs are a technology that enables two applications to communicate with one another. Whenever you use a messaging app or the weather app on your phone, you are using an API. In terms of financial services they enable your finance brand to link your database with other applications or programs. This is done securely, without the need for third party applications meaning your customer’s data is protected. By allowing your finance brand to link to other applications this enables you to expand the services you can offer and enables you to create and implement innovative tools in a matter of weeks not months.
“ The ability of APIs to enable innovations means they have the power to increase a bank’s revenue by 20% when implemented.”
API technology is becoming more essential for finance brands wanting to create great digital and personalised online experiences. APIs can enable your finance brand to improve in four key areas: reach, speed, domains and the Internet of Things (IoT). Ultimately, they can help streamline processes by creating fast and seamless customer experiences.
In terms of financial services, API technology can be utilised in several ways. Some ways APIs can improve your customers’ experience include:
- Account authentication
- Payment processing
- ATM or branch location software
- Credit score checking
- Loyalty programs
- Link services to fintech apps
Deutsche Bank nailing API technology
One example of APIs being utilised to better the online financial experience is Deutsche Bank who have rolled out, in partnership with Swift, their new Beneficiary Account Validation (BAV) service. This service enables consumers to verify payee account information before an international payment is sent.
This directly addresses consumers’ concerns regarding international payments being sent to the wrong person. Additionally, it also helps reduce consumer dissatisfaction by improving end-to-end efficiency. In terms of the benefits for the bank, it reduces fraud rates and sets them apart from the competition enabling greater lead generation and brand awareness.
The benefit of APIs for financial services
At the core of it, API technology is critical for your finance brand as it enables innovative ideas to be created easily but also implemented quickly. This means you can respond to consumers’ needs and wants fast, benefiting the customer and helping to improve brand loyalty and trust.
The ability of APIs to enable innovations means they have the power to increase a bank’s revenue by 20% when implemented. Employing APIs shouldn’t be seen as a maybe but instead a must-have piece of technology for your finance brand.