{"id":4965,"date":"2021-11-22T11:17:33","date_gmt":"2021-11-22T05:47:33","guid":{"rendered":"https:\/\/cashfree.com\/blog\/?p=4965"},"modified":"2023-01-04T14:36:10","modified_gmt":"2023-01-04T09:06:10","slug":"why-api-banking-is-fintechs-next-big-bet-2","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/","title":{"rendered":"Why API Banking is Fintech&#8217;s Next Big Bet: Experts Speak"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #005c31;color:#005c31\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #005c31;color:#005c31\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/#API_banking_is_Fintechs_Next_Big_Bet\" >API banking is Fintech\u2019s Next Big Bet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/#Implementation_of_API_in_Banking_Sector\" >Implementation of API in Banking Sector&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/#Next_stage_of_Evolution_%E2%80%93_From_Internal_Banking_Protocol_to_API-led_Banking\" >Next stage of Evolution &#8211; From Internal Banking Protocol to API-led Banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/#Data_analytics_and_Open_Banking_API\" >Data analytics and Open Banking API<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/#BaaS_and_Open_Banking_API\" >BaaS and Open Banking API<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/#Bottom_Line\" >Bottom Line<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">The Fintech or financial technology industry today is constantly disrupting the financial services ecosystem. They\u2019re not only forcing banks to change their business operations but bringing in automation to deliver a seamless customer experience.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Opening banking is a perfect example of the ongoing disruption. It\u2019s enabling banks to collaborate with Fintech platforms to adopt <a href=\"https:\/\/cashfree.com\/blog\/next-gen-apis-payment-solutions\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=next_gen_api_payment_techsparks_blog\">open API technology<\/a> and stay ahead of peers. These APIs help banks:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Meet the changing needs of existing customers and appeal to prospects&nbsp;<\/li>\n\n\n\n<li>Increase customer satisfaction through Banking as a Service products<\/li>\n\n\n\n<li>Provide secure, agile, and future-proof banking methods.&nbsp;<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/blogrevamp.cashfree.com\/contact-sales?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=fintech_api_banking_blog\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/eGDqO4Vq1hNNPIDJJzRAIJrsPuMi0JX3cHE16UeWlfa_7NOgdi04ulhPtrRMVQfsIkx4VUdTsnlXfxwDumcCkCQPSXVWOjhrwnWYQQKx7DvwwCUjy36W_P_QFcboz7F_bjJ9VRXp\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Though a fairly known concept in the financial services industry, the actual realization, and adoption of the open-banking system increased after the outbreak of the COVID-19 pandemic.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This blog is a TL\/DR of a keynote speech by Akash Sinha, CEO and Co-founder, <a href=\"https:\/\/blogrevamp.cashfree.com\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=techsparks_blog\">Cashfree Payments<\/a>, at Techsparks 2021. He walks us through his thoughts on why API banking is fintech\u2019s next big bet and how banks and fintechs are working together to offer new and improved banking services to end customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Here\u2019s a synopsis of this interesting session.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-api-banking-is-fintech-s-next-big-bet\"><span class=\"ez-toc-section\" id=\"API_banking_is_Fintechs_Next_Big_Bet\"><\/span><strong>API banking is Fintech\u2019s Next Big Bet<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s the logical reasoning behind this perspective.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The concept of banking has been around for ages &#8211; probably since the first currency was minted. However, the proof of concept and their benefits were realized after the industrial revolution.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banks primarily focused on the fiscal distribution of paper in the localized network of buildings and humans during their initial phase of establishment. Today\u2019s they\u2019ve come a long way. Banks are experiencing digital evolution where everything\u2019s revolving around the distribution of data over globalized networks focused on software and servers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Amidst this, traditional banks are finding it difficult to exit their preset constraints because it\u2019s difficult to fundamentally change their conventional banking structures.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In come the Fintechs and their revolutionary solutions that are helping transform these monolith, lethargic organizations into fast-paced, customer-centric digitized institutions.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/cashfree.com\/blog\/open-banking-api\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=open_banking_api_techsparks_blog\">Open-banking API<\/a> is one such Fintech solution that\u2019s focused on enabling monoliths to use robust, customer-centric products and services that ensure the best overall customer experience.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Complete Open sourcing of financial services through:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Apps<\/li>\n\n\n\n<li>APIs<\/li>\n\n\n\n<li>Analytics<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">This leads to competition and collaborations between incumbents and traditional banks.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rise of open-banking API is primarily due to 3 major reasons:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A rise in customer expectation&nbsp;<\/li>\n\n\n\n<li>Competition of fintech<\/li>\n\n\n\n<li>A rise in the regulatory environment<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" fetchpriority=\"high\" decoding=\"async\" width=\"770\" height=\"403\" data-attachment-id=\"5070\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/api_banking-02\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-02.png?fit=1200%2C628&amp;ssl=1\" data-orig-size=\"1200,628\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"API_Banking-02\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-02.png?fit=770%2C403&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/11\/API_Banking-02-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"if financial services were an organism, API is the new gene embedded in its DNA\" class=\"wp-image-5070\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-02.png?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-02.png?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-02.png?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-02.png?w=1200&amp;ssl=1 1200w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-implementation-of-api-in-banking-sector\"><span class=\"ez-toc-section\" id=\"Implementation_of_API_in_Banking_Sector\"><\/span><strong>Implementation of API in Banking Sector&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Application programming interfaces (APIs) have made it fairly easy for software developers to build more applications. For the banking sector, they represent a lot more.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">APIs enable easy access to banking services, products, and data. This \u2018easy access\u2019 lets them unlock a range of business opportunities, add the impact of regulation, and they change again, becoming agents of disruption with transformative potential.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They\u2019re, in fact, multipurpose tools that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enable compliance in local banking regulations<\/li>\n\n\n\n<li>Give access to the ecosystem of related businesses, and&nbsp;<\/li>\n\n\n\n<li>Simplify legal systems<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote has-text-align-center is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cAPIs represent a significant opportunity to innovate, work more efficiently, and develop new and better banking products and services\u201d<\/em><\/p>\n<cite>Akash Sinha, CEO and Co-founder, Cashfree Payments<\/cite><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">In terms of an API implementation, it\u2019s a steep climb that many banks are trying to mount. They\u2019re taking initial steps to enhance their quality in regard to technology development, customer engagement, and business expansion.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">China, for example, has various ecosystem models. It\u2019s bringing together Fintechs, companies, banks, and other financial service providers to buy and sell products, share technology, and expand their networks. Meanwhile, banks in countries like the USA and Europe have started getting involved or investing in Fintechs to create new revenue streams for a more tailored customer experience.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today, India too has many tech-first banks that are changing the mindset and skill-set of modern banking. They\u2019re forcing banks to inculcate customer-centricity in their hearts and evolve from being product pushers to customer engagers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-next-stage-of-evolution-from-internal-banking-protocol-to-api-led-banking\"><span class=\"ez-toc-section\" id=\"Next_stage_of_Evolution_%E2%80%93_From_Internal_Banking_Protocol_to_API-led_Banking\"><\/span><strong>Next stage of Evolution &#8211; From Internal Banking Protocol to API-led Banking<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The introduction of NEFT, RTGS, and IMPS by RBI and NPCI respectively, marked the beginning of digital online banking in India. It served as a paradigm shift in the way banking services were offered to the end customer.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The next stage of evolution was the shift from internal banking protocol to API-led banking.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">API-led banking has brought about a significant change in how financial operations are carried out today. Innovators now have more flexibility to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>offer better banking features through streamlined financial services<\/li>\n\n\n\n<li>cater to competition<\/li>\n\n\n\n<li><a href=\"https:\/\/cashfree.com\/blog\/innovation-in-payments-driving-digital-adoption-2\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=payment_innovation_techsparks_blog\">Introduce more innovative fintech products in the market<\/a>&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">From a customer\u2019s POV, today you can have a single view of all your finances and even control, track, and analyze your financial movement, all in one place.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, Fintechs are heavily using open-banking API services (among others) to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Give account balances in real-time<\/li>\n\n\n\n<li>Control, track, and analyse all financial movements, in one single place<\/li>\n\n\n\n<li>Process vendor payments at high speed<\/li>\n\n\n\n<li>Reduce administrative hurdles to manage finances such as applying for a business loan, checking your credit worthiness, etc.&nbsp;<\/li>\n\n\n\n<li>Enhanced visibility of cash position, cash flow, and more<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/merchant.cashfree.com\/merchants\/signup?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=fintech_api_banking_blog\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"172\" data-attachment-id=\"5067\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/api_banking-03\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-03.png?fit=1200%2C268&amp;ssl=1\" data-orig-size=\"1200,268\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"API_Banking-03\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-03.png?fit=770%2C172&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/11\/API_Banking-03-1024x229.png?resize=770%2C172&#038;ssl=1\" alt=\"Cashfree payments - the new-age API banking platform\" class=\"wp-image-5067\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-03.png?resize=1024%2C229&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-03.png?resize=300%2C67&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-03.png?resize=768%2C172&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-03.png?w=1200&amp;ssl=1 1200w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-data-analytics-and-open-banking-api\"><span class=\"ez-toc-section\" id=\"Data_analytics_and_Open_Banking_API\"><\/span><strong>Data analytics and Open Banking API<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Data analytics today lies at the heart of the open-banking API evolution. Banks can now collect substantial quantities of data related to customer behavior that enables them to create more tailored products and services and also run specific marketing initiatives.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For instance, banks can get a more realistic picture of a customer\u2019s financial situation using APIs. This, in turn, can help them create the right lending products.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banks continue to be the custodian of consumer finances. However, they need Fintech(s) with strong banking APIs in their arsenal. Fintech(s) can offer greater innovative products and services along with better technology that helps create a customer interface that leads to larger customer adoption and customer delight.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banks and players in the payments industry are collaborating to leverage the benefits of data analytics and API banking to create customer-centric solutions. Meanwhile, third-party institutions are using the two solutions to build personalized offerings.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-baas-and-open-banking-api\"><span class=\"ez-toc-section\" id=\"BaaS_and_Open_Banking_API\"><\/span><strong>BaaS and Open Banking API<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Open-banking APIs are also essential for the functionality of <a href=\"https:\/\/cashfree.com\/blog\/banking-as-a-service-baas\/?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=baas_techsparks_blog\">Banking as a Service (BaaS)<\/a>. It\u2019s fast in popularity as a concept under the open banking umbrella. It involves banks opening APIs of the fintech players.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"770\" height=\"403\" data-attachment-id=\"5066\" data-permalink=\"https:\/\/blogrevamp.cashfree.com\/why-api-banking-is-fintechs-next-big-bet-2\/api_banking-04\/\" data-orig-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-04.png?fit=1200%2C628&amp;ssl=1\" data-orig-size=\"1200,628\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"API_Banking-04\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-04.png?fit=770%2C403&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/cashfree.com\/blog\/wp-content\/uploads\/2021\/11\/API_Banking-04-1024x536.png?resize=770%2C403&#038;ssl=1\" alt=\"Banking as a Service vs Open Banking\" class=\"wp-image-5066\" srcset=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-04.png?resize=1024%2C536&amp;ssl=1 1024w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-04.png?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-04.png?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking-04.png?w=1200&amp;ssl=1 1200w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">However, it goes beyond data checks. BaaS allows third-party companies to offer banking solutions embedded in their own financial offerings. It\u2019s not about accessing financial data, rather about the functionality of the core financial services.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">BaaS provides customers with a wide variety of financial services. Moreover, it ensures increased transparency. It also increases competition in the financial services domain. Both banks and third-party companies benefit from the accommodation and offer the best services to the customers.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bottom-line\"><span class=\"ez-toc-section\" id=\"Bottom_Line\"><\/span><strong>Bottom Line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The battleground is all set for another digital revolution in the banking industry being played between digital consumers and digital banks. APIs are the arsenal that will provide the ammunition. The banks of the future can stand victorious only if they\u2019re able to provide the most unique services to the customers based on their digital footprint and financial lifestyle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To sum up, if financial services were an organism, API is the new gene embedded in its DNA. No doubt, this mutation will create a new paradigm in the API banking system, the potential of which is yet to be fathomed.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/merchant.cashfree.com\/merchants\/signup?utm_source=blog&amp;utm_medium=organic&amp;utm_campaign=fintech_api_banking_blog\"><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/iPPeL-UwLNm_pfULoUULHG_RY-aniPgEmAyo93z9gmOo6_ceA58Bd5FXJPSESI23zbaUcKr19YuFALBdHbk9QX7QFp80wz-k3ru6VIgrBMXVbHW2pWSJgJWhznI5YCyYP-5ED26S\" alt=\"Steps to integrate Cashfree payments on your web\/app platform\"\/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>The Fintech or financial technology industry today is constantly disrupting the financial services ecosystem. They\u2019re not only forcing banks to change their business operations but bringing in automation to deliver a seamless customer experience.&nbsp; Opening banking is a perfect example of the ongoing disruption. It\u2019s enabling banks to collaborate with Fintech platforms to adopt open<\/p>\n","protected":false},"author":29,"featured_media":5072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[1463,1499,1485],"class_list":["post-4965","post","type-post","status-publish","format-standard","has-post-thumbnail","category-all","tag-api-banking","tag-banking-as-a-service","tag-roundtable-discussion"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Keynote | Why API Banking is Fintech&#039;s Next Big Bet | Cashfree<\/title>\n<meta name=\"description\" content=\"API banking is enabling traditional banks to use robust, customer-centric Fintech products &amp; services to ensure security, agility, and increased customer satisfaction.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cashfree.com\/blog\/why-api-banking-is-fintechs-next-big-bet-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why API Banking is Fintech&#039;s Next Big Bet\" \/>\n<meta property=\"og:description\" content=\"API banking is enabling traditional banks to use robust, customer-centric Fintech products &amp; services to ensure security, agility, and increased customer satisfaction.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.cashfree.com\/blog\/why-api-banking-is-fintechs-next-big-bet-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Cashfree Payments Blog\" \/>\n<meta property=\"article:published_time\" content=\"2021-11-22T05:47:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-04T09:06:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/blogrevamp.cashfree.com\/wp-content\/uploads\/2021\/11\/API_Banking_Thumbnail.png?fit=1098%2C732&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"1098\" \/>\n\t<meta property=\"og:image:height\" content=\"732\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Astha Khandelwal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Why API Banking is Fintech&#039;s Next Big Bet\" \/>\n<meta name=\"twitter:description\" content=\"API 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