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Zoondia Innovating the future

How Real-Time Communication APIs Are Transforming The Relationship Between Banks & Their Customers

api in banking

Banks and other financial institutions, such as credit unions, investment businesses, brokerage firms, insurance firms, and others, have long operated through physical locations. For setting up and maintaining a physical office, involves a huge investment. They also face difficulty in keeping competitive while also increasing production and efficiency.

In the last few decades, the digital revolution has taken the world by storm, affecting every business, particularly banking and finance. APIs, or Application Programming Interfaces, are the tools that let banks and other financial institutions achieve successful digital transformation, enabling them to capture market opportunities and flourish.

Consumers may now make payments via payment gateway on their favorite e-commerce site while on the go, and with third-party authentication software, Digital KYC can be finished in no time. Using API interfaces, one may quickly invest in mutual funds and equities from their preferred bank. Fintech companies are approving loans for their customers in as little as five minutes after reviewing their credit scores. Booking travel tickets, using smart devices for day-to-day necessities, and signing into websites using Facebook and Google interfaces are just a few of the advantages. APIs perform various functions in our daily lives behind the scenes, as evidenced by the examples above. APIs are quick, safe, dependable, and efficient, and they help organizations achieve their objectives.

According to Statista research from July 2020, there were 4.57 billion active internet users worldwide, which account for 59 percent of the global population. This group includes tech-savvy millennials who prefer to connect with banks and financial services through secure, mobile-friendly online mediums. To meet the needs of the new tech-savvy generation and capture the biggest share of the market, Zoondia, being the Best End-to-End Development Solutions Provider, agrees with the fact that all banks and financial institutions must innovate to offer cutting-edge technology-enabled services. APIs (Application Programming Interfaces) have become more important than ever before as digital applications have become not only vital but also an integral component of today’s business era.

APIs have been around for decades and have demonstrated their ability to revolutionize businesses by providing banks and financial institutions with a wide range of options. According to a recent survey performed by Cloud Elements, API integration is a vital aspect of a business strategy for driving digital transformation projects for 83 percent of major worldwide organizations from 44 countries. 77% of the firms who participated in the survey also said that they have invested in API Management.

Real-Time Communication APIs provide a real-time flow of data and communication between banks and clients. APIs also allow for direct and continuous communication across different software systems, resulting in a better user experience while saving time.

How Do APIs Benefit the Fintech and Banking Sector?

Boost overall cost-effectiveness

Open API development has proven to be a lifesaver with regards to cost-effectiveness to banks, which in turn benefits users who may now access a variety of services through the integration of various applications. For example, third-party bookkeeping software can be used to save a user’s banking information.

Promote data sharing for a better experience

Earlier, banks used to be quite protective of their customers’ data and were very hesitant to share it. That changed, first in the European Union, as a result of PSD2 (Second Payment Services Directive), then globally. Users who have complete control over their data can now demand that their data be shared with the third-party provider of their choice. And how is this facilitated? Via open APIs!

APIs are future-proof

The increase in fintech app development shows that APIs in the banking business are unlikely to become outdated. Hundreds of fintech businesses emerge every now and then, indicating that there is enough need for them to keep attempting to improve their services by integrating APIs and other methods.

Higher competition means more services

The introduction of APIs has enhanced market competitiveness, resulting in lower prices in the financial industry in comparison to the range of services available. Users, for example, now have access to services that were previously only available in branches. Customers can now compare offerings from banks and other financial institutions through financial services aggregators.

Fast and efficient operations

Banks may provide a seamless experience to their customers by adopting an API-driven methodology. APIs enable clients to manage financial transactions on their devices in real-time, from any location, using mobile banking, online banking, and wallet services. As a result, clients do not need to go to the bank to do such transactions.

When compared to running physical bank branches, nowadays internet transactions account for about 90% of all transactions. This can save substantial resources and expenses.

Augmentation of Product Portfolio

APIs in banking is allowing them to offer complementary goods such as insurance or products that they co-create with their partners, financial tech, and innovation enterprises. The flexibility of APIs that link with many frameworks allows for such portfolio expansion.

APIs can allow banks to sell non-financial things alongside financial products. Using an API-driven e-shop, Emirates NBD is enabling its cardholders to access hospitality, entertainment, and retail services.

Here Are Some Of The Key Benefits for customers when Integrating Communications APIs In Banking Apps:

  • Advance Engagement — By integrating a real-time messaging API into banking apps, any communication can be held in real-time. This is the time when banks may expect a higher level of client involvement.
  • Increases Trust – Customers may communicate directly with banks, address their doubts, and have a clear communication line with real-time messaging solutions. As communication occurs in real-time, these elements promote confidence and demonstrate reliability.
  • Solves Issues Instantly – Messaging APIs for banking apps address customer concerns in real-time and improve communication so that users may resolve banking issues quickly.
  • Faster Transactions – Real-time communication API integration for banking apps ensures that transactions are completed faster, improving customer service.

Now, that we have understood the benefits, let’s analyze the various types of real-time communication APIs:

In-App Chat API For Banking Apps

Most national and international banks have invested in in-app chat APIs, owing to the greater levels of customer care that banks can provide. As a result, it was obvious for banks to incorporate in-app chat APIs in order to improve approachability, simplify day-to-day banking processes, maintain client relationships, ensure time-efficiency, and improve overall user experience.

Video Calling API For Banking Apps

The use of a video calling API in banking apps facilitates and personalizes interactions between bank employees and consumers. This is due to the fact that video chats solidify communication and allow customers to contact bank administrations and address their concerns from anywhere on the planet.

Voice Calling API For Banking Apps

Another wonderful interactive way to contact customers is through a voice calling API for banking apps. Banks may be personal, quick to resolve difficulties, and, most importantly, attain a high level of engagement through human interaction.

Banks can use a voice calling API to manage, monitor, and trigger voice calls as needed by their customers, resulting in stronger client relationships.

How can Zoondia help you?

An organization without APIs is analogous to a computer without the internet, and such a machine would be considered obsolete. Without APIs, banks and financial institutions would be unable to interface with the rest of the digital world both internally and externally. Organizations must assure that the services they provide to customers are complete and meet their requirements. The ideal API solution can help you realize your full potential in terms of developing new goods, services, and collaborations. As the Leading API Development Company, our strategy is solely based on our commitment and continuous engagements with clients.

Zoondia has a long-standing strategic partnership with leading solution partners. We have worked with businesses across Banking and Financial Services of all sizes, helping them with API management. Organizations must know where they are in their API journey and understand its maturity. We developed an API maturity model based on a variety of maturity parameters, capabilities, and options to help enterprises assess the maturity of their API programs.

At Zoondia, the Leading Provider of Business Solutionswe use all of our skills and understanding to create custom online solutions that will propel your Banking & Finance company to the top. Connect with one of our professionals today to know more.

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