If you’re in the realm of technology or financial institutions, you’ve probably heard of application programming interfaces or APIs. In today’s world, new APIs are being developed to assist communication between different software systems, allowing them to communicate in real-time. For example, the app Uber uses communication between Google Maps and the desired payment method to perform and pay for a service. The APIs within Uber allow all these capabilities to take place within one app. This experience, along with other API capabilities, are strongly influencing the world of financial institutions. Banks and credit unions are seeking ways to become more profitable through API solutions. There are several ways that that APIs are changing the banking world. Here are a few ways we are seeing this happen.
From Physical to Digital
Customer experience is a strong focus in the financial institution space. Customers are always looking to do more with less when it comes to personal banking. APIs are allowing banks to transition physical tasks to digital tasks. Customers want to control their financial tasks whenever and wherever they want. This includes payment features, learning about specific bills, or tracking their personal finances. APIs bring these tasks together through a user-friendly interface.
Assisting Community Financial Institutions
For a long time, community banks have been hindered by the lack of resources to provide the same technology solutions as some of the larger banks. However, APIs are starting to shrink the gap between the capabilities of banks, no matter the size. Through the use of APIs, Fintech companies can easily partner with community banks to provide solutions that significantly enhance the capabilities of community banks, empowering them to develop stronger brand awareness within their communities, while also providing an improved customer experience.
The Impact of Internal APIs
From an internal perspective, APIs are a huge help to boost agility, efficiency and effectiveness of a financial institution. APIs can provide strong support for data management as well as enabling integration with business partners. Banks can also utilize APIs to overcome hurdles created by legacy systems or insulate the customer experience while legacy technology is upgraded. API integration into a bank’s business strategy can help workflow, expand market presence, and add value to the overall banking experience.
NXTsoft’s OmniConnect API Solutions
As the market-leading API provider for Fintech and bank and credit union integration, NXTsoft’s integration solutions provide a way for any Fintech company that sells to community financial institutions to seamlessly connect their applications to the financial institutions. This enables the institutions to strengthen their digital channels and push more functionality from origination systems, CRM, rewards and various other channels into digital, providing the seamless experience that customers demand.
With over 25 years of API experience, NXTsoft’s innovative solutions are built to the highest industry and regulatory standards. With thousands of APIs already in place, NXTsoft has a strong reputation throughout the U.S. of providing quality integration solutions. OmniConnect is devoted to setting the standard for connectivity and automation in the financial institution industry.