3 Reasons Why Every Fintech Lender Should Have An API
The future of banking is here, and it's called Fintech. The world of online banking and even mobile banking are all things we take for granted today. But imagine if you didn’t have the internet and you couldn’t access your money from your phone? It’s a scary thought, but for generations ahead of us, that would have been the norm. Now imagine if you didn’t have an app for that. The world of Fintech is constantly changing, and while the name might be new and unfamiliar, the concept is anything but. It’s banking reinvented, and the future of banking is right here, right now.
What is Fintech?
Fintech is short for financial technology. The term refers to the use of technology in a financial institution or industry. It encompasses anything from using an ATM to transfer money to using your phone to pay for something at a store with PayPal.
Why Every Lender Should Have An API
An API (Application Programming Interface) is a way for two systems to communicate. For example, your bank might want to communicate with another company, like Google Sheets. The API would allow your bank and Google Sheets to be able to communicate with each other by speaking the same language. This means that you’ll be able to use Google Sheets to manage your bank account or import data from your bank account into an accounting program.
APIs are important because they make it easier for apps and banking institutions to work together. They power the future of banking, and we’re excited about what they have to offer us in the coming years!
3 Reasons Why Every Fintech Lender Should Have An API
An API is a set of instructions that governs how an application can interact with other systems. In this case, it's an online banking application interacting with another system like your bank. APIs are used to give your customers the ability to deposit checks from their phones, transfer money between accounts, and more.
The three main reasons why every Fintech lender should have an API are:
1) Faster transactions: When you use an API, you add speed to your transactions. Imagine if you had to enter all of your account information each time you wanted to transfer money? By using an API, you can just input the new details once and make transfers in mere minutes.
2) Increased security measures: Customers want increased security when it comes to their Fintech accounts, and that’s what APIs offer them. With APIs, users have the option of adding two-factor authentication before logging in or making any changes to their account. This ensures that no one who should not have access will get it and hackers will be locked out more easily.
3) Increased customer satisfaction: When customers trust your company with their financial information and know they're protected by increased security measures, they'll be happy customers for life!
Conclusion
With so many new fintech options, the industry has never been more competitive. But with the right API, you can do what your competitors can't: create your own customer experience.
To make sure your customer never has to wait to get their data, an API will ensure the data they need is always streaming to them. By simply giving customers the data they need when they need it, you are taking the stress off of them and giving them what they want. And when they know you are supporting their needs, customers are happy to do business with you and refer you to their friends and colleagues.
