Thank you for Subscribing to CIO Applications Weekly Brief
Useful Tips to Integrate API to Make Customer Journey Easy
Payment APIs streamline all the payment-related processes, lessen collections costs by more than 10X, enable instant settlement, automate recurring charges, and reduce transaction risk.
Fremont, CA: According to a recent survey, API, or Application Programming Interface, is a buzzword in every industry, with as many as 90 percent of software developers relying on APIs to develop the core functionality of their applications. Third-party financial service solution providers, such as payment initiators, account aggregators, and other emerging FinTechs, can access a variety of data through Open Banking APIs. PSD2 and Open Banking regulations are supported by these APIs, which have been designed and documented.
There are numerous examples of how an API-first approach improves the customer experience, whether it's signing up for social media, paying with e-wallets, or searching for the weather.
Here are some ways that businesses can use APIs to improve the customer journey:
Reducing Operational Cost
A payment process is an integral and critical part of any business. And, companies often struggle with a pile of invoices, second-guessing every transaction that happens. Payment APIs streamline all the payment-related processes, lessen collections costs by more than 10X, enable instant settlement, automate recurring charges, and reduce transaction risk. Businesses can also use Payment APIs to generate a payment link that can be used across multiple channels like Whatsapp. Moreover, payment APIs have proven immensely useful in avoiding manual account reconciliation, saving time and money.
Banking Integrations Made Easy
Banking APIs have revolutionized business banking. FinTech companies can enhance cash flow visibility, reduce operational hurdles, and analyze all financial transactions using simple APIs. It enables seamless opening of Consumer & Current bank accounts and conveniently availing banking services like money transfer without going through any paper transaction. With Banking APIs, FinTech can let customers open bank accounts with just a few clicks from the comfort of their offices or homes.
Further, banking APIs have fueled the growth of Neo Banking. Apart from this, APIs have also facilitated interactive financial services, including modern use cases like Embedded Banking. API platforms are coming up with simple plug-and-play APIs that can simplify various financial operations for FinTech platforms, marketplaces, etc., across products such as virtual accounts for reconciliation or virtual cards for businesses to spend, track and manage their accounts, etc. within their ecosystems.