5 Examples of Effective API Banking

July 2, 2021

API Banking is emerging as a way to enhance how customers manage their finances. Check out some good examples of how banks can use APIs to their advantage.

Three people in a conference

Financial services have, for many years, been encumbered with large, complex and often difficult to manage system architectures.

No longer. Now, a new age of API Banking is dawning, replacing cumbersome legacy systems with agile, dynamic, headless APIs connecting and amalgamating different services into one convenient application for customers. 

API Banking has been empowered through being a requirement of Open Banking regulations which have been introduced in the UK, as well as the equivalent provisions under the European Union’s Payment Services Directive 2. These posit that banks must open up customers’ accounts, on their permission, to third-party applications. 

From intelligent chatbots, applications influenced by behavioural science to integrating finance into the Internet of Things, check out some examples of how API Banking is changing the face of financial services. 

Caixa Geral de Depósitos (CGD)

Caixa, being a member of SIBS, has been heavily involved in the development of its API Market aimed at facilitating third-party provider access to financial services APIs provided by CGD and other banks. These APIs, developed in compliance with PSD2, go well beyond the regulatory mandate to create an innovation platform that enables a varied assortment of product and services companies to test and develop ideas. This ultimately results in new and enticing ways to research and consume financial services. 

The success of the platform is dependent on the fact that it covers 95% of the Portuguese financial services market, giving customers the opportunity to access these products/services whomever they bank with. With the customer’s permission, participating entities can share account information, consolidating it into a single coordinated view to benefit the customer.

Mastercard KAI

Customers will often be in search of an answer to particular questions about their finances. Chatbots have become best placed to provide them. 

Mastercard partnered with chatbot provider Kassito to develop KAI. Its easy integration into social media means customers can ask questions wherever they are. KAI uses Natural Language Processing to make human-like conversation with Mastercard’s customers, allowing them to monitor their spending, check their purchase histories, learn about cardholder benefits, and more besides.


HSBC and MuleSoft 

HSBC’s work with MuleSoft demonstrates the effectiveness of internal APIs to optimise customers’ ability to manage their finances. Framed as a way to gently ‘nudge’ customers in the right direction, the Nudge app combines API banking with behavioural science to deliver good outcomes. 

Deutsche Bank 

Deutsche Bank has integrated push payments into its customer journey, including confirmation of payments made on third-party applications. It also offers the FinanzGuru app which automatically identifies potential savings for customers and provides them with a simple overview of their contracts and finances. 

Capital One 

Capital One has embraced the Internet of Things, linking accounts to Amazon’s Echo device to offer voice banking to its customers. While smartphone chatbots are still most popular, using verbal commands to retrieve information about customers’ finances offers a new, more personal dimension to managing accounts. 

API Banking has the potential to redefine the way we bank, yet it requires significant technological investment to succeed. Pivotal to this is the formation of an API Banking strategy, ensuring financial institutions have a clear direction in mind when enhancing their services they offer.

Explore how Critical Software can help you secure this strategy and navigate the opportunities offered by API Banking by learning about our work with Segurnet.