Tom St. Onge | VP, Business Development
January 07, 2014

Top 5 Ways the Financial Industry Uses APIs to Improve End-User Experience

 

As caretakers and gatekeepers of our money, financial institutions are charged with the mammoth responsibility of facilitating personal, national, global exchange. And with this, come heavy regulations, multiple core systems and layer upon layer of infrastructure that can hamper agility and pace of development in the digital landscape.  

But no matter the complexities involved, financial companies are realizing that not staying in step – offering the most seamless user experience, creating platforms for the most convenient and secure financial transactions across mobile and web – means falling far behind. And in recent months, the financial industry has seen a surge in tech integration, especially with regard to APIs.

Here are some major advantages financial organizations are experiencing by relying more heavily on APIs and developer technology.

Fine Tune Vertical-Specific Services

APIs solve many of the challenges that arise from vertical-specific financial servicing, by pulling and controlling the delivery of the right data for the right verticals. Increased specificity in data and its usage allows financial enterprises to better address specific end-user needs, maximizing user experience. With the use of APIs, developers are developing innovative, user-centric, vertical-specific businesses on the foundation of financial servicing, and users are benefitting from broader, more targeted services and capabilities.

Attract More Partnerships to Deliver Better Customer Offers

Capital One uses Mashery APIs to stay ahead of the curve in the financial space, and one of the primary benefits that Capital One is seeing so far is a wider ability to attract and maintain new partnerships by providing more benefits for partners via API technology. For example, by effectively identifying which customers buy which products, Capital One’s Deal API allows partners to place more relevant ads and messages at the point of purchase.

As Mashery API Platform Analyst, Sasha Kamenetska pointed out in an earlier blog, Capital One has successfully used APIs to expand their brand, attract new partnerships and in turn, create new revenue streams.

And more partnerships mean more attractive offers for end users, which can result in greater revenue.

Immediacy

Immediacy is key for higher engagement, and financial enterprises such as Capital One are using APIs and developer technology to broaden depth of development to test and industrialize processes, improve flow, and scale partner traffic, so that end users and partners can do more in less time. By more largely embracing developer technology and APIs, financial services platforms are falling more closely in line with lightening fast developer speed.

Diversify Offerings & Better Customize

As demand for more personalized, seamless engagement increases, customization significantly impacts how end users experience financial platforms and services. APIs paired with the right tooling and technologies allow for the mass customization of customer and enterprise channels that heightens end user experience and overall platform performance.

Surefire Security

The financial industry cannot support enterprise without an assertion of trust or reliability. APIs help financial companies move money quickly and effectively while maintaining the highest level of security by connecting more data without exposing that data. Only the right data is exposed to the right channels, mitigating risk and lending to better user experience. APIs also allow safe structuring cross-platform, allowing financial enterprises to provide greater end-to-end transparency.

APIs are significantly improving how financial enterprises connect with customers, partners and data. But more than that, APIs are helping the financial industry expand the impact and capabilities of financial services and platforms.

Joshua Greenough, Senior Director of Innovation at Capital One, who recently spoke at the Business of APIs conference in New York, deems APIs as tools to help people reimagine how they interact with their money. His advice to the enterprise is to manage your APIs as a product.

Want to learn more about how our API management can help you provide a better user experience on your financial platform? Check out our Live Product Demo or contact us today.