The Growth of APIs in FinTech

MEDICIFounder and Chief Strategy & Innovation Officer

It won't be wrong to say that APIs would power a lot of new FinTech innovation. Most FinTech companies now float their products on cloud services so that they can access API data like an on-premise database. Recently, highlighting the importance of APIs, Stephane Dubois, CEO and Founder of Xignite Inc., said to LTP, “First of all, you don’t require any data centers and infrastructure. You don’t need to invest in building up everything. You can pretty much use something which is pre-built and scales with you. If it is a good, scalable API, then you should be able to call it again and again, in a reliable fashion. These are the drivers because of which entrepreneurs/developers are increasingly depending on APIs to help them build products. They can focus on their core strength and build that part of the product, while for other things (such as financial data), they can just use the API.”

As FinTech startups continue to disrupt traditional financial services, banks are also waking up to the fact that offering an open API—where developers can latch on and create very specific customized app solutions—is the way to engage and retain their customers in the future.

Number of API in sectors

Below is a list of different types of APIs related to finance:

Trading, lending, financial packaging, remittance, invoice & billing, market data, bitcoin/blockchain and digital payments.

Examples of finance APIs in different sectors:

Digital Payments: Stripe, PayPal, 2Checkout, Dwolla, Braintree, CardConnect, Monitise, Google Wallet, MasterCard, Visa, Apple, Adyen,, SecurionPay, Judo Payments, GoCardless, Venmo, Amazon Payments, Boku, Handpoint 

Financial Packaging: Google Wallet, Marqeta, Intuit, iZettle, Square, Yodlee, MasterCard, PayPal, Plaid, Fincity, Fidor Bank, BancBox, GoCardless, Pich Technologies, Figo

Trading: Open Exchange Rates, Xignite, Oanda

Lending: Kiva, Crowd Valley Inc., FundPaaS Business Onboarding

Remittance: MasterCard, Currency Cloud

Invoice & Billing: FreshBooks, Plaid, Fortumo, Invoicera, Gini, AcceptEmail & CloudBilling, Boku

Bitcoin/Blockchain: Blockchain Data, Coinbase, BlockTrail Bitcoin Webhooks, Blockchain Wallet

In an interview with Mr. Bruce Wallace, Chief Operations Officer at Silicon Valley Bank, he was asked, “Do you think API is the next big thing in banking and financial industry or is SVB working on any other services while taking steps ahead in innovation?” He replied, “We are working on a lot of different things here at SVB but all of them fall under one objective: making things easier for our clients so that they can focus on building their companies and innovating. Whatever banking services clients consume from financial institutions, our overarching goal is to find a way to make it as frictionless and as simple as possible to get those services and work with us.”

Banks and other financial institutions are sharing codes through application programming interfaces of software gateways that allow applications to work together. APIs are a bank’s tool for survival and relevance in a smartphone-first world. So making it open to outsiders is pretty much like inviting the competition to come in and read the insider’s note. However, industry watchers say that offering an open API is not a deterrent. Instead, it lets fresh-off-the-boat tech companies and ever competitive developers innovate much faster on the built platform, as opposed to keeping their app development limited to compliance-inhibited, resource-strapped IT organizations.

Amit Goel

MEDICIFounder and Chief Strategy & Innovation Officer

Amit Goel is the Founder & Chief Strategy & Innovation Officer for MEDICI. Amit’s vision is to build a strong FinTech market network that involves financial institutions, banks, startups, investors, analysts & other key stakeholders across the ecosystem – helping each one of them in a meaningful way by removing the asymmetry of information and providing a platform to engage & transact.

Amit is passionate about bringing actionable FinTech-focused insights, innovative products & services for the FinTech ecosystem. Some of his work involves startup scores, bank scores/assessments, predictive viewpoints & other innovations that have helped MEDICI’s customers and the ecosystem. He has been named amongst the Top 100 FinTech thought leaders/influencers in the world & Top 10 in Asia multiple times by reputed agencies, consulting firms as well as financial institutions. Amit has built MEDICI (formerly LTP) as a new-age, tech-enabled advisory/research firm, which is now considered the #1 global research & innovation platform for FinTech in the world.

Amit has been writing pioneering viewpoints on financial technology space that have been ahead of the curve since 2010. His data-driven predictions have helped the customers as well as the ecosystem. His past work experience includes a strong background in strategy & market analysis and advisory to clients (from big business houses to Fortune 500 firms) in payments, commerce, financial services & IT/technology. In the past, Amit had also founded a successful consulting & research practice called GrowthPraxis and has worked at Boston Analytics, Frost & Sullivan, and Daimler Chrysler in strategy & research.