What is API banking?

API, or application programming interface, is essentially a piece of software that connects to other software. As the term suggests, an API is a programmer that serves as the interface between applications.

In contrast to new age fintech businesses, including some banks, that were founded in the digital age, the majority of banks still largely rely on far from sophisticated legacy systems, making it difficult to use those APIs to access the activity and data they contain. Nevertheless, banks increasingly see these versatile technologies as genuine business value generators and are taking the shape and form of technology service providers themselves.

They partner with and trust organisations like Neowise to onboard fintech use cases, this gives them a zero capex way to increase their partnerships, increase their issuance base and in turn revenues.

In the Banking as a Service (BaaS) sector, APIs are essential. BaaS refers to services that allow banks to offer consumers digital services or interface with other digital services.

It is also known as Banking as a Platform (BaaP) or Banking Software as a Service (banking SaaS).

Neowise takes care of all payment and banking infrastructure needs so that our clients can concentrate on creating world class end user experiences, which is what they do best.

API banking examples include:

BaaS: For a fintech to partner with a bank directly, is an expensive and time consuming process, hence BaaS players like Neowise are able to help reduce time and cost to market by at least 50%

Embedded Finance: Embedded payments allow users to pay for services within an app. Examples include apps like zomato or rideshare apps like Uber and Ola.

Lending that is integrated into retail websites, such as makemytrip or amazon, allows customers to make small credits and pay for their purchases over time. Other forms of embedding Banks can integrate their products with other fintech applications where consumers frequently transact with money.

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