New technologies are reshaping the financial sector, fostering healthy competition by providing the best services and products in the industry, and introducing new models and more sophisticated solutions, such as APIs.
According to estimates, the global financial services infrastructure has created 5,564 API products as a result of consumer demand for more digital solutions.
Software in the financial sector
APIs are interfaces that allow two softwares to communicate for data request and exchange, which is useful for developing applications that adapt to the technology with which financial institutions are already familiar.
They are tools that provide a technological boost to businesses, with digital transformation focusing on processes and results.
Main types of APIs
• Public: they are available to all users, with completely open data, making this type of interface useful for developers but not for the financial environment due to privacy concerns.
• Private: they are the most commonly used by financial institutions. These interfaces are only accessible to authorized users, and data is transferred between the server and the requesting element via established protocols.
• From partners: these are solutions provided by a third party to financial companies in order for them to expand their product or service offering and make it more efficient.
What do they contribute?
They are fast and can move a large amount of data because they are computer solutions, which translates into a very fluid experience for both financial institutions and their clients, for example, by making credit analysis faster and more accurate, providing tax data, and solving very specific problems such as inefficient payments, failed payments, management of internal functions, and payment cancellation.
Benefits of APIs in companies with digital transformation
Among the benefits they provide, the following are worth mentioning:
• They are versatile applications, with much more flexible data transfer processes.
• They have a broad reach: due to the variety of applications, information can be transmitted to a variety of agents (in the case of a SAT API, from the tax service to the lender, and then to the borrower).
• They are adaptable: they adapt to the needs of users and their operations, providing only the necessary data.
• They are efficient: this has already been mentioned, the ability to handle a large amount of information quickly and simultaneously, distributing it through multiple channels at the same time.
• They adapt: Because of their adaptability and use of current data, they are solutions that can adapt to a changing financial sector.
• They provide information in real time: Because APIs can perform and record operations in real time, you can quickly display a current picture of customers and their situation.
The API solution in CRiskCo
In terms of specialized software, CRiskCo has this tool for lenders, which provides all of the benefits mentioned above, as well as credit analysis via AI, direct connection to the tax service, and risk calculation for potential clients, in addition to reviewing other financial indicators.
With CRiskCo’s API, you can innovate in your business and use technology to increase productivity.
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