These are the findings of the recent study titled Banking APIs: The State of the Market, released by global software company Axway and APIdays, a global conference focused on organisations’ use of APIs for automating IT and business. According to research, 88 percent of banks surveyed believe internal APIs are essential for regulation and compliance, back-office systems management and for leveraging big data.
Digital technologies such as API management are transforming every aspect of the financial services industry. APIs are linkages that offer a set of tools and protocols to describe how one software program communicates with another. The definition has broadened recently as new channels, processes and customer expectations emerge to refer to not just the specifics of the API itself, but to networked collaborative services. This is forcing financial services organizations to rethink established business models.
The majority of those involved in the study believed in an open platform future for banks, in which 60% of a bank’s APIs would be made available to partners and third-party providers. As a result, financial services organizations should closely consider API management initiatives to build an effective digital strategy. This strategy should be designed to meet traditional performance and regulatory demands while opening and integrating their ecosystem with the ultimate objective of offering the flexibility to support digitally-savvy, empowered customers.
For similar API-related stories, please download the latest edition of our Online Payments Market Guide here.
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