Banking APIs make it easier for developers to build software solutions that interact with banks. APIs are sets of rules and methods that software developers can follow to allow computer programs to exchange information.
Open Banking API are Application Programming Interfaces that help third-party developers integrate services (such as payments, loan originator, and risk management) into their applications.
They do this by providing an interface or set of standards for building software solutions that connect with bank software services.
You can use banking APIs in your app to streamline account management or automate financial transactions. A good API will also have endpoints with documentation and examples that you can use right away to integrate the bank’s services into your app. When evaluating potential partners, ask yourself these questions:
What are the Best Banking APIs?
There are several popular banking APIs that are used for various purposes. We’re going to look at the best ones and why they’re great for your business. The list below is from a popular blog, but you can use these ideas as a template to create your own list of top banking APIs.
We’ve broken the top five banks into three categories:
Banks that support cryptocurrency
These banks focus on making payments easy and secure, rather than handling payments using fiat currency. They offer a variety of payment methods, such as credit cards, debit cards, and even mobile apps that allow you to pay with cryptocurrencies like Bitcoin or Ethereum.
Banks that offer third-party payment processing –
These banks also focus on making payments easy and secure, rather than handling payments using fiat currency. They offer a variety of payment methods, such as credit cards, debit cards, and even mobile apps that allow you to pay with cryptocurrencies like Bitcoin or Ethereum.
Banks that offer mobile app integration –
These banks focus on making payments easy and secure, rather than handling payments using fiat currency. They offer a variety of payment methods, such as credit cards, debit cards, and even mobile apps that allow you to pay with cryptocurrencies like Bitcoin or Ethereum
Banks that make large deposits/deposits –
These banks focus on making payments easy and secure, rather than handling payments using fiat currency.
What is the reputation of the bank?
When you’re looking for a banking partner, one of the first things to figure out is the reputation of the bank. You want to work with a bank that does a lot of business with other partners and that has a good standing within the industry.
This is especially important if you’re using the bank’s APIs to sell your product online. You don’t want potential customers to see warnings on your site about the bank’s poor standing. Make sure you do your research on this front before committing to a partner.
Does their API integration with other important services?
Another important aspect of choosing a banking partner is to make sure their API integrates with other important services. If your app interacts with customers, you want to make sure it’s easy to authenticate and provision accounts.
Look for partners that have integrations with providers like Facebook, Google, or Microsoft. You also want to make sure there are integrations with payment providers like Stripe or PayPal. Ultimately, you want to make it as simple as possible for your customers to onboard with your app.
Which services does the API support?
Most banking APIs support account management, but some also support loan origination or bank verification. Find out which services the API supports and make sure those are services your app could use.
If your app needs a user to create a payment or transfer funds, you don’t need a banking API that also supports loan origination. You can use these services as a filter when selecting a partner.
How easy is it to integrate? What’s the onboarding process like?
Banking APIs can provide a lot of great functionality for your app, but only if you can integrate them easily. Be sure to read through the documentation and talk with customer success before selecting a partner. You want to make sure it’s easy to integrate their API into your app and that the onboarding process is simple.
How reliable is the API from a performance standpoint?
Banking APIs have high uptimes and low latency—most of the time. You should look for APIs that have 99.95% uptimes or better. You should also look at the average latency of the API or available SLAs to make sure you have the level of performance you need. If you have specific performance requirements, make sure the partner’s API meets those standards.
What are the Limitations of Using Banking APIs?
As you go through the selection process, you should be on the lookout for any limitations with banking APIs. If you’re considering an API that supports a specific country, make sure you’re operating there.
If you need to support a specific currency, make sure the API supports it. You don’t want to be surprised by any of these limitations after you’ve gone through onboarding.
Ultimately, banking APIs make it easier for you to integrate banking services into your app. They allow you to streamline account management or automate financial transactions.
Banking APIs can also help you to secure funding from investors or find a loan from a financial institution. Find a banking partner that has a good reputation and makes it easy to integrate their services into your app.