Research Outline

Open API in Fintech

Goals

To better understand Open API in fintech, specifically the market landscape, strategies for companies with open API, starting an open API, and use cases including monetization.

Early Findings

API Defined

API in Fintech

  • An API in banking and fintech allow an app developed by a fintech company to communicate with a bank´s server and then use that information to provide financial services to customers. This could include "apps designed to help people create budgets to robo-advisors, and from payment processing programs to block chain technology."
  • Fintechs use APIs to process payments, for peer to peer programs, investment management, white labeling, and regulation.
  • Use cases for open API include:
    • Customer acquisitions;
    • Personalized offerings;
    • Internet of Things;
    • Cross industry integrations;
    • Data Science;
    • Fraud and crime; and
    • Rewards and loyalty
  • Use cases have three basic pillars:
    • Deployment framework;
    • API governance; and
    • Value realization and monitoring post-deployment.
  • Open API is considered one of the most significant trends in the fintech industry.

Summary

  • While there is a reasonable amount of data available in the public domain, a lot of it has been generated by software development companies meaning there is a slight bias to it. What this means is it takes some time to evaluate the information and ensure only relevant, unbiased information is considered.