Technology Trend: Banking API’s

By | June 19, 2014
This entry is part 12 of 30 in the series Trends

Closely related to the “Cloud” trend, it makes sense that banking services running in the cloud would be offered for consumption by the computer systems of other organizations (as an API) in addition to humans (as in a mobile app).

From Digital Bank by Chris Skinner

PayPal launched X, a developer-based service for PayPal processes as application program interfaces (APIs), … The result is that PayPal’s relevance increased greatly overnight and led to Citi following a similar approach when it announced that its transaction services would be offered as APIs at the SWIFT International Banking Operations Seminar (SIBOS) in 2013. In other words, all bank processing is just open-source coding, offered to anyone to plug and play with their offerings through APIs.

I am not sure that I would equate an API with open source code, but I agree with his points — Such as the need to open the API’s up to start-up developers.  This will make sure the bank is involved in the “next big thing” and reduce the pressure on the bank to keep on top of everything going on in the industry.

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  1. Pingback: exampleBank – Trends | Alan Street

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