The API economy is changing the game. Are you ready to play?
Not very long ago, it was rare to find someone in finance who knew what an Application Programming Interface (APIs) was. Today, most financial institutions have implemented their own APIs. Their systems are ready to interface with partners and consumers in ways that provide customers with extra value and the institution itself with new ways to grow. APIs aren’t just some systems integration detail — they’re products that empower developers to delight end users.
Devising an API monetization strategy to realize the biggest ROI (return on investment) is a big must in today’s market.
So here is the API economy, and it’s here to stay! It opens new horizons for your company, by enabling collaboration and co-creation of new solutions leveraging what others have available, in a robust, interconnected and integrated new normal.
What is API monetization?
Any company can invest in the creation of APIs to solve specific challenges or customer pain points. API monetization allows other players with the same — or similar — challenges to use the company’s APIs, in return for a fee. Each monetized API instantly creates a new revenue stream.
Why are APIs valuable to other institutions?
Besides offering other players access to customers, APIs can also help companies to cut their time to market. In a world that privileges crowdsourcing, rather than reinventing the wheel, companies can use APIs a bit like Lego blocks, to simply slot into their platform and solve the problem for them. And, of course, they will pay for the service.
What APIs can be monetized?
Organizations can monetize APIs which are not part of a proprietary or sensitive process (Some country regulations might restrict the monetization of specific APIs). Types of APIs to monetize include (ensuring compliance and customer consent in mind as appropriate): Authorization APIs, Payment APIs, Product APIs, Fraud APIs, FX Conversion, among others.
A bank can, therefore, develop APIs to resolve the challenges of providing account verification, FX conversion, fraud prevention services to address specific requirements by challenger banks and/or other financial service providers.
Can APIs improve the customer experience?
By integrating across value chains — including owned and third-party touch points — and by enabling a much faster-pace of customer interaction, APIs allow institutions to gather data on how customers prefer to interact and what products and services they like on the fullest possible range of channels and devices.
What are the benefits of API monetization?
By monetizing APIs, organizations can turn a sunk-cost investment into a new revenue stream, allowing as well turning cost centers departments (e.g tech support or internal developer teams) into revenue generators, thus revamping their balance sheet by transforming costs into assets to be monetized.
What are my next steps?
When you are ready to move forward with your API Monetization Strategy, you will need a Developer Portal, including documentation, sample code, testing tools, and other resources to get developers up and running quickly. It also means your APIs are as user-friendly as possible and highly consumable.
You will also need goals, metrics and a pricing strategy, as well as access to FinTech and other 3rd party solutions, to accelerate your time to market.
Achieving all the above effectively (fast time to market) and efficiently (at an affordable price) will require to partner with a pro.
Above you can learn more about FinConecta, its proprietary middleware 4wrd (forward), and how we can partner to realize the benefits of the API economy!
FinConecta is a technology company that brings together digital solutions and businesses in the financial world and beyond. With 300+ years of collective experience, FinConecta’s team is on a mission to drive digital acceleration worldwide, providing its clients with a holistic approach to sustainable transformation and a mindset shift every step of the way.
FinConecta’s main objective is to build a global interconnected financial network that integrates key players in the financial services value chain, accelerating the digital transformation of the financial industry. 4wrd, FinConecta’s platform, is designed to incorporate all kinds of players in the financial sector (financial institutions, banks and others) with a marketplace of digital solutions from around the world, creating a financial ecosystem.
4wrd (forward), FinConecta’s open API cloud based platform, provides a secure and proven infrastructure to accelerate the adoption of cutting edge technologies. Partnering with financial institutions, 4wrd platform resolves interoperability constraints associated with legacy systems proposing a one-to-many efficient integration model, in contrast to the inefficient, traditional one-to-one model. The platform includes an API manager, cloud infrastructure, testing environment and a match-making marketplace of curated FinTechs.
FinConecta’s solutions help banks leapfrog to API-enabled business models and generate new revenues streams through collaboration. In 2017, FinConecta partnered with top development institutions like IDB- covering Latin America, and FMO – covering the African region, to offer FinTech innovation programs designed to accelerate the digitalization of the financial industry and promote financial inclusion by exploiting existing innovative technologies.
In 2019, FinConecta in partnership with Prosa, the biggest payment processor in Mexico, launched FintSpace, the first marketplace at a country level. FintSpace by Prosa takes a central role as a driver and facilitator of innovation in the Mexican Financial Industry, positioning Prosa as a leader in Open Banking.
Through these programs and partnerships, FinConecta created the first global interconnected ecosystem which joins all relevant players of the financial industry. Our main focus lies in pairing and connecting Financial Institutions and FinTechs from all over the world. Today institutions from Latin America, Africa, Asia, as well as hundreds of FinTechs from across the globe, are part of our ecosystem.
One Platform, Multiple Uses
Be mind blown by the versatility, flexibility, scalability and usability of our middleware, 4wrd. One connection opens a world of opportunities.
Integration as easy as 1, 2, 3
FinConecta’s unique integration process can be completed in 3-8 weeks!
- Select Digital Solutions & Open Banking Framework Setup
Choose from our catalog of +200 digital solutions.
- Integration of APIs & Developer Portal Customization
No APIS? No problem! Consume what you need from our API catalog. Integration of APIs and management tools with minimal IT effort from the institution.
- Go live!
Live activation of third party solutions after completing testing in our Sandbox.
Ready to play? Contact us at email@example.com