What Is Api Banking, And How Is It Changing The Indian Banking Sector?

API banking is an emerging trend in India because of the many ways in which it helps banks conduct

banking sector

API banking is an emerging trend in India because of the many ways in which it helps banks conduct their operations. API banking is slowly being adopted by banks, financial institutions and people. API banking has enabled banks to take an open approach to transactions. Open banking through API is a process which shares customer data with a third-party app through a secure and safe network.

These networks are well protected and do not take up the question of breaching data privacy. The advancements banks have made in cybersecurity and networking have helped bring in API banking.

API and Open Banking- An overview

Open banking is a process that is triggered only when the customers consent to their use. The data that is collected through open banking channels is shared with third-party businesses so that businesses can offer better services and products according to the customer data collected. The data collected through APIs can be used for data analysis and insights that are then fed into the marketing funnels of businesses.

The customers ultimately benefit because they are given better services and products based on the data collected. FidyPay has designed API banking solutions in such a way that open banking can be easily facilitated. The API solutions will help you streamline the overall banking process, automating strategically important points.

The use of API banking also ensures that new financing sources are added to the structure of banking so that there are new revenue streams for financial organisations. On the whole, FidyPay API services are acting as a catalyst for growth in the BFSI sector.

The API banking solutions also help protect your banking processes by creating secure environments where fraudulent activity can be easily detected. The API solutions will also increase the speed of the transactions so that the customers can experience better service and send and receive money easily.

Advantages of API banking

Now that you know about the overall use of API banking solutions, let us go deeper into the benefits of API banking.

Better Financial Management

The API banking solutions from FidyPay can be used in IMPS, NEFT and RTGS processes to improve the speed of these transactions. It will be easier to conduct these operations and keep track of them with the API interface. Therefore, the use of API solutions can help in better financial management. For businesses, API banking helps conduct complex financial operations and large transactions very easily so businesses can monitor and manage their financial cash flow in real time and use the funds for improving their internal operations.

Better User Experience

The API banking solutions increase the security speed of transactions and integrate the financial processes into a larger app. The simplification and integration of financial transactions into a larger app that helps in monitoring and recording the transactions helps in improving user experience.

The user experience of API-enabled applications is better than traditional financial apps because the API improves the speed and ease of transactions. Since banking institutions are in a constant influx for bettering user experience and improving customer service, a switch to API banking is a move in the right direction.

Unlock New Opportunities

API banking helps in gathering customer data, which can be used to extend better marketing and sales services to customers. The data can help businesses improve their overall brand positioning. With the help of the data collected from API banking, businesses can tweak their marketing and product strategy.

By improving the marketing and product strategy, the business can target leads and convert them into customers. With the help of API banking, business owners and managers can unlock new opportunities. This improves the user experience and makes the business strategies flexible according to data collected from customers. So, businesses can improve their revenue and profit prospects.

High-Level Data Security

API banking has multiple layers of security and firewalls, which allows the solutions to work with high-level security. Data of the customer is shared through highly secure channels, so it is protected from cyber threats. The high level of data security ensures that the people who do transactions through API do not face any fraudulent behaviour and can send or receive money in a hassle-free manner.

There are no data leaks, and the data that is shared is selective. The authorization and access processes are also highly controlled and secure. Because of the high level of security around data exchange and access, API is more secure than conventional banking apps.

Customised Financial Services

The API solutions extended by FidyPay can be tweaked and programmed in different ways for customised banking services. Depending on the type of financial institutions and the services they offer, API solutions can be modified and implemented. The customization of the API helps in extending the services that support the sector and also creates a scope of automation.

Many manual processes that were earlier repetitive and time-consuming are minimised and integrated into the automated framework of API services. The efficiency and speed of the financial services are improved with the help of these customised API interfaces. Banks and businesses can team up with FidyPay to customise the API according to the services they offer. Even the most basic processes like IMPS NEFT are automated, and the steps are minimised so a customer can complete a transaction within seconds.


API is the future of fast banking and real-time financial data monitoring. API works as a bridge between the BFSI sector and all other industrial sectors of India. All the allied sectors and businesses can benefit from the implementation of API services and frameworks. If you wish to know more about API integration into financial apps and improve your financial channels, collaborate with FidyPay today for the most advanced solutions that make it happen.

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