What are banking APIs – features and functionality

An API or Application Programming Interface allows third party applications to access a common set of tools. In banking, this means that a bank, digital bank, or e-wallet can offer third-party services to its customers through APIs and connect to pre-existing technologies or services from other service providers.

There are 2 main types of banking APIs that FinTech companies use: APIs for service providers and open APIs (Open APIs).

Banking APIs for Service Providers

These APIs allow fintechs to access service providers to introduce new products, automate processes, or improve efficiency.

What services and features can be accessed through banking APIs?

In banking, there are many different services provided through APIs such as KYC/AML and customer onboarding, identity verification, payments, currency exchange, card issuance, virtual IBANs, transactional SMS, and others.

Some APIs also help online merchants expand the list of payment methods on their website and pay for goods and services directly from their e-wallet account. To receive and process payments, merchants first need to open an account with a PSP (payment service provider).

Banking APIs – Opportunities for Service Providers

New services and features

APIs represent a great opportunity for digital banks as they allow them to rapidly adopt new features and products by connecting to ready-to-use solutions. Ultimately, this contributes to the overall growth of financial companies and improves the quality and variety of services available on the platform. For example, with our Macrobank digital banking solution, fintechs can expand and enhance their services by choosing integrations that are ready to be deployed or by integrating with new service providers. Connecting various services through the API means you can create your own solution in no time, which will work with tools and functions through the API.

Easy and fast start of services
Ready-to-use APIs and gateways enable payment companies to quickly and efficiently launch new services, and the flexibility of a digital banking system like Macrobank will be a great business engine with the new integrations your business needs.

Improving the quality of customer service
APIs allow banks and fintech companies to provide a more positive customer experience or improve the quality of customer service, since through the API you can connect innovative solutions that are designed to speed up many processes or make them more efficient.

Open API
Since the revised Payment Services Directive (PSD2) came into force in Europe in January 2018, open APIs have become incredibly important for several reasons. This directive stimulated the development of the API. Financial service providers have begun to develop applications and services that are able to capitalize on the data they can now receive from financial institutions.

The Open API allows third-party applications to access the most common banking tools, services, and valuable assets such as financial information, customer accounts, and product catalogs.

Advapay’s open API, developed in accordance with the PSD2 requirements, offers a safe and secure way to access open customer data and interact with third-party providers (TTP).

Open API Features

Improving the quality of customer service

With the help of open APIs, data, with the consent of the consumer, can be made available to third parties for certain actions. This, in turn, will allow fintech companies to improve the customer experience and offer additional services. In addition, data about customers or their actions can be used for personalized offers.

Increase customer base
Ultimately, APIs may have an impact on the future of banking. They will connect banks, financial institutions, service providers and consumers and help you use financial information safely and conveniently. This will increase the range of products and services that financial institutions can offer to a potentially wider customer base.

Macrobank is a digital banking platform that allows fintech companies to launch their digital banks. Macrobank provides all the necessary functions for digital banks, a back office for monitoring and managing operations, web and mobile applications for end users according to the white-label model, as well as ready-made integrations with various services. Available as a SaaS solution, as well as the purchase of a software license.

In addition to the Digital Banking platform, Advapay services include professional fintech consulting, assistance in licensing payment systems or e-money issuers.


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