vestwell vestwell vestwell
  • About
  • Contact
  • Testimonials
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Monday, May 16, 2022
No Result
View All Result
CALIFORNIA BUSINESS JOURNAL
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
CALIFORNIA BUSINESS JOURNAL
fintech

API Banking: The Next Step in the Future of Fintech

Banking is now done in sweatpants while lying in bed. The future of banking is API technology.

by Jackie Crowley, California Business Journal
A A
Share on FacebookShare on Twitter

Banks are notoriously stubborn when it comes to adopting technology. It is time to realize the days of men going to the bank in a three-piece suit to pull out hundreds of dollars in cash are over. The future is in our pockets. The future is API banking.

Application Programming Interface (API) is the facilitating interface between two software. It is the intermediary that lets two systems communicate.

The waiter example is a famous demonstration of API. A customer ordering food through a waiter is an illustration of API. The customer reads the menu and communicates what they want to the waiter. The waiter relays that to the kitchen and brings it to the customer. The waiter acts as the API.

Now, imagine that as an application on your phone. You sift through options on the app, you click, and more information is delivered to you. Uber uses APIs to connect to maps, for example. API technology has been around for a while, but only recently has banking caught up.

API Banking

API technology is a complete digital transformation in banking. The latest developments in banking have astronomically increased the scope of future fintech. Banking API and other financial technology can now provide services that otherwise would not have been possible.

Several finance companies have applications utilizing API technology. Applications like Venmo and Cash App are intermediaries between users and banks. Banks that do not take advantage of this financial technology risk falling behind.

ADVERTISEMENT

Banks use API to provide access through third parties. Increased access to their services broadens their reach and accessibility, which draws more people to the bank. It keeps them loyal by making their services simple.

How Does API Banking Affect Fintech?

The latest developments in banking create unprecedented opportunities for fintech companies. Banks may not want to invest in creating their own API applications. However, plenty of established applications on the market can create a symbiotic relationship with banks.

Banking as a Service

Fintech companies can latch onto banking as a service (BaaS) technologies to grow. All of which is possible via API. Fintech, BaaS, and banks work together to create a simple user experience. Behind the scenes, there is rigorous communication between systems through API.

An example is a fintech company using BaaS services, like customer verification, on their platform. The service is not created by the fintech company. Instead, they partner with BaaS services that act as the intermediary, saving new companies money and time. They do not have to code these systems themselves.

Open Banking

API technology has led to open bank data, also known as opening banking. Open banking is a step away from centralization. Instead, banking access works through networks. Fintech companies use open banking to work with all the banks. Companies have access to the financial data of the consumer through APIs.

The possibilities are endless for fintech companies in a fully open banking environment. Fintech platforms can solve specific, individual problems for consumers. They could be offering solutions to problems of which consumers are unaware. They can make sense of the entire financial situation of a person and subsequently present it in an easily understandable way.

The Market

The market is responding positively to third-party fintech platforms. Fintech has more power than they might realize. The increased trust consumers have in these platforms puts pressure on banks to get involved.

The more banks are willing to provide in terms of services and access, the more potential for innovation. Innovation leads to more fintech platforms. More platforms mean more jobs and more profit.

API Banking Is Here To Stay

Fintech companies are bright-eyed and always thinking about potential. They want to innovate by changing the way consumers view banking. Twenty years ago, no one could have imagined that consumers would trust anyone but a bank with their finances. Fintech platforms are now a legitimate way to seek financial advice, deposit money, and send payments. It is now the bank’s turn to catch up.

API technology has made it so the banks are covered. API banking has come a long way from just being a connecting layer.

The modern API is standardized and thus secured and monitored. APIs are now subject to constant cycles of updates and revisions. Monitoring the systems is how we prevent outdated technology that could fail.

APIs have become widespread and are now adopted by most major financial institutions. It is an exciting time to get into fintech. API technology has grown into a game-changing technology that has opened up the banking world. And because of it, there is more freedom than ever for partnership between banks and fintech companies.

Banking is now done in sweatpants while lying in bed. The future of banking is API technology.

Related Posts

The Banking and Fintech Trends of 2021 That Changed the Industry
The Banking and Fintech Trends of 2021 That Changed the Industry
Fintech
The Parabolic Rise of Fintech in 2022
Tags: API BankingapplicationbankscompanyconsumersdatafinancefinancialfintechfoodinformationjobsleadsmakingpowersystemstechnologyThe Next Step in the Future of Fintechtrust
ADVERTISEMENT
Jackie Crowley, California Business Journal

Jackie Crowley, California Business Journal

Related Posts

The Banking and Fintech Trends of 2021 That Changed the Industry
The Banking and Fintech Trends of 2021 That Changed the Industry
Fintech
The Parabolic Rise of Fintech in 2022
advertisement
Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Marketing
  • Medical
  • News
  • Newsletter
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • Gavel, scales of justice and law books

    Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • New Study: California’s 10 Universities That Produce the Most CEOs

    0 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0
  • The Only Way

    0 shares
    Share 0 Tweet 0
  • Is Virtual Financial the Future of Financial Services?

    0 shares
    Share 0 Tweet 0
  • How to Start a Telecommunication Business: A Step-By-Step Guide

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    0 shares
    Share 0 Tweet 0
  • Best Crypto Faucets You Can Try In 2021 and 2022

    0 shares
    Share 0 Tweet 0

Latest Articles

Attorney David Libman

The Beat Goes On

Attorneys Jeff Johnson and David Rawi

Business Profile: Johnson & Rawi PC

covid testing

Steps to Take If You Think You Have COVID But Can’t Get Tested

5 Ways to Get Free Spins No Deposit at a No Account Casino

No-account casinos set new gambling standards in online gambling.

How much you can earn with Cisco DEVNET Associate certificate

How much you can earn with Cisco DEVNET Associate certificate?

pay-per-call-leads

Reasons to Use Pay Per Call Marketing for Your Business

Gopuff Founders Rafael Ilishayev and Yakir Gola

Commentary: Diving into mass market expansion to meet unprecedented consumer demand for fast delivery of food and other consumer staples.

Mary Teresa Barra is the chair and chief executive officer of General Motors, the first female CEO of a 'Big Three' automaker.

Part 2: Business Leaders’ Watchlist 2022

The Lowdown on TikTok Filters

The Lowdown on TikTok Filters

Lip Filler

Lip Service

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR