Bahaa Abdul Hussein is a Fintech expert and shares his experiences with his audience through his blogs. This time he discusses the role of API in Fintech space.
The financial industry has always been one of the most advanced industries. Therefore, it is no surprise that API management solutions have also become a part of the global economy. These solutions are used to manage and monitor the availability of APIs and their performance.
The API management market is growing rapidly and is expected to reach $6 billion by 2024. The growth of this market can be attributed to the increasing demand for APIs by businesses and developers observed Bahaa Abdul Hussein.
As per a report published by MarketsandMarkets, the global API management market was valued at $2 billion in 2018 and is expected to reach $9 billion by 2024.
Application programming interfaces (APIs) are gaining popularity in the financial services industry to improve IT systems’ adaptability and functionality.
An API strategy is the foundation of any API program, as it facilitates the integration of historical systems with modern applications and databases to open up new channels for delivering products and services.
A wide variety of technical requirements, including infrastructure, software, and procedures, must be in place before an API strategy can be implemented successfully. A few of the most important are as follows:
API Lifecycle:
When it comes to building and maintaining APIs, IT departments should consider them like products. There are three key stages of a product’s lifecycle: conception and design, consumption, and management.
Increasing interconnection:
As application programming interfaces (APIs) gain popularity as a medium of financial innovation, the need for widespread service connectivity grows to accommodate the IT infrastructure’s expanding complexity and geographical dispersion. For this reason, it’s important to support the whole API lifecycle, not only for established API gateway types but also for newer, more flexible service mesh models.
Having the freedom to develop:
Numerous banks and financial institutions now use multiple cloud services to foster creativity. This makes them less reliant on antiquated infrastructure and more adaptable to shifting consumer tastes.
The need for operational freedom:
The difficulty of managing and sustaining IT systems grows in tandem with their increasing complexity. DevOps is essential for the constant rollout of new services, but it’s just as important to be able to automate the entire API lifecycle.
Infrastructure security:
There has never been a time when strong security was more crucial than now due to threats’ ever-changing nature. Before launching into an API strategy, it’s essential to give this some serious thought.
Privacy:
The transmission of sensitive information within and between APIs also requires careful thought. Payload masking, redaction, or alteration are all options for hiding sensitive information.
Absolute lack of faith:
Companies in the financial sector increasingly use a “zero trust” security policy. A solid infrastructure with strong authentication and authorisation is essential when dealing with APIs.
A successful API deployment
The value that an API strategy creates for a company is the single most important factor in determining the strategy’s success. These include a faster rate of innovation, higher revenues from providing new and improved digital client experiences, and a distinct advantage over rivals.
With the ability to integrate old systems with robust new web-based services and resources, financial institutions will be better able to meet the rising bar of service quality set by today’s discerning consumers.
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