APIs in the Financial World: Top Three Banking APIs

Nowadays, APIs have become a crucial part of the business world. There are tons of different APIs available: e-commerce ones, social media ones, security ones, just to name a few. The financial world is no different. Banking-as-a-platform is predicted to be the new trend that will change the way we interact with our financial services.

Since banks want to keep up with the ever-changing customer demands, they are now opening their businesses up to their partners and the online community as a whole. They are doing this through APIs and API software that allows others to make use of their services. In order to introduce you to financial APIs, we are going to look at some of the more popular ones on the market.

1.     Kontromatik Banking API

Kontromatik is a banking API that is not limited only to banks. Their solution can be used for various scenarios: finding a better deal on the market, credit scoring, enabling services in startup applications, authentication of users, etc. The Kontromatik API collects the data from the customer`s account, with the agreement between the client and Kontromatik.

Big data that gets gathered is processed in many ways to make things simpler for developers to learn from it. The API is quite simple to use and implement, however, you shouldn’t underestimate its capabilities. When you’re logged on as a user in your bank account, the bank will get a KYC with the data they need, and ID that is verified by the bank.

After the confirmation of the client`s identity, the API analyzes client`s expenses and incomes, and/or see if the client is eligible for a loan. All of that can be processed in a matter of minutes. The application also offers a PFM tool, that can help you find better credit cards or deposits for your customers.

2.     GoCardless API

GoCardless is a little different than others on this list. This UK-based platform is actually an online direct debit provider. Any individual or a company could take debit payment, without the need for a merchant account or the need to pay the credit card fees.

GoCardless will provide you with easy direct debit payments. If you expect to receive a monthly income, you can decide between cash/credit card payment every month or your clients period payments. When it comes to the direct debits, the payer`s account will be charged, and the money sent to the payee. You just need to take some time and fill out and send some forms.

This app serves as a middleman, which does the job of verifying the payer`s information in the banks and setting up debt payments on the accounts. Before paying with your GoCardless for the first time, you need to fill out some form fields that need your personal information, in order to authorize the payment. After that, you don`t need to fill out those fields again.

The company will only take 1% of your transaction. This application is the most used in the Eurozone and the United Kingdom. There are some other similar apps in the world, like Dwolla, but Dwolla is limited to the United States of America. The future of GoCardless looks bright, they have more and more users every day. Especially with more and more countries are accepting Euro as their currency.

3.     Stripe API

In recent times, Stripe gained a ton of attention in the financial world. Now it is the most popular payment provider online, even more popular than PayPal. API made by Stripe is now managing the transactions for some of the biggest companies. We will only say that Apple chooses them and their solutions for the Apple Pay system. Now you see how good they are.

Stripe`s API was developed back in 2009. This company is offering the processing services for mobile and online transactions. Also, they are providing well-designed code. From the start, the code was easy to deploy and very secured.  The developer could implement the features in their applications or sites, without registering and maintaining a user account.

The highlight of Stripe’s capabilities is their comprehensive and clear pricing plan. That plan involves a flat rate for payment processing. Then again, the main complaints are regarding a long transaction period, because the company needs to check all of the client`s information. That process is crucial for preventing the frauds, and after that transferring the money into other accounts.

Conclusion

We are all witnesses to how much the financial world is dependent on APIs. The three APIs we talked about today are probably used by millions of people every day. If you’re looking for a way to improve your financial services, you should definitely pick one of the three we talked about here and try it out. If it doesn’t fulfill your needs, try them all out, and we’re certain you’ll find you’re looking for eventually.

We hope you enjoyed while reading our article. If you have something to add, or you have some questions, feel free to leave a post in our comment section down below. We will respond as fast as we can. Thank you for reading our article.

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