Explore Sensedia's Powerful API Use Cases For Banks And Fintechs
If you've reached this page, you already understand that APIs power digital innovation in the financial sector. The competitive landscape has expanded beyond traditional boundaries, encompassing not only banks, or fintechs, but also extending to and encompassing diverse and interconnected business ecosystems across a range of dynamic services.
Partnerships are key to success in today’s competitive financial landscape, and utilizing APIs allows for building and participating in a partner ecosystem, placing products in new digital channels, monetizing data and services through diverse models (developer pays, developer gets paid, etc.). Integrating legacy systems with new technologies, driving innovation, and enhancing customer experience, are essential ingredients to new business.
Cases: click here to explore how Sensedia powers innovation in the financial sector
APIs can fall into three categories: private (internal use only), restricted (accessed solely by specific clients and partners), or public. These categories define the security and governance measures needed. Private APIs require stringent security for internal data protection, restricted APIs need controlled access, and public APIs demand robust security to counter external threats.
Below, we've compiled a few ideas for utilizing APIs to provide data and services to companies in the financial sector.
General company data and offerings
- Product types (cards, loans, insurance, payments, bank accounts).
- Promotional Offers.
- Local Services (ATMs, branches).
- Bank Identification Number (BIN) data
- Index fees, calculators
Specific Data Points
- Client profile information
- Personalization and custom offerings
- Payment processing and money transfer services
- Fraud prevention (scoring, validation, and account closure)
- Alerts and push notifications
- Transaction history and status
- Account balance
- Planning (routes, trips, car)
- Data exchange & partnership programs (fintechs, loyalty programs, rewards)
Mobile and devices
- Camera: capturing and processing photos of required documents.
- GPS: Using APIs, you can locate the nearest branch or ATM.
- NFC & Digital Wallet: for transaction authentication and approval with virtual cards.
- ATM: APIs for accessing banking and partner services and issuing commands at ATMs.
- POS: enables calling own and partner services via APIs.
- Kiosks: facilitate product/service enrollment and inquiries.
Data & Analytics
- Real-time monitoring of integrations and transactions across various channels.
- Aggregated data (demographics, financial, technical).
- Integration with Analytics and Artificial Intelligence platforms.
- Security, authentication, and backend protection mechanisms.
- API call request
- Data conversion
Sales channels, marketplaces, and platform strategy
- Place products on third-party platforms, with or without whitelabeling.
- Delivering third-party products through your channels via APIs.
- Connecting buyers and providers of a particular product/service.
- Build a partner app store or marketplace with APIs.
- Seamless omnichannel shopping experience (website, chatbot, physical store, app).
- Initiate payments or share/collect social media customer behavioral data.
- Deliver services via APIs in a testing environment for MVP building, hackathons, and faster product rollouts.
APIs are the Key to Scalability
The financial market is experiencing substantial API-driven changes, ushering in significant user experience transformation with new, increasingly customizable, and niche-specific products and services. The rise of Embedded Finance and Open Banking initiatives worldwide further underscores the significance of APIs. Institutions and users are increasingly requiring safe and uniform standards to share their data. This is an opportunity for fintechs to innovate and better serve their clients.
Interested in learning more about Embedded Finance? Click here to discover how we can help you shape your strategy!
As a result, organizations engaged in this revolution can identify and build new business models, while streamlining their internal operations – bringing seamless integration and agility to all their processes.
The future of the financial market is intricately linked to the use of APIs, which bring greater interoperability, synergy, and efficiency to all players and ecosystems involved.