In today’s world, banks and credit unions are no longer just financial institutions. They’re also software companies.
Delivering and maintaining cutting edge technology by continuing to ‘wow’ customers and provide an unmatched end-user experience is now a competitive requirement. Plus, customer service is prioritized as a key growth and customer loyalty factor for banks and credit unions, most of which are now maintained through omnichannel experiences.
So how can banks and credit unions craft a digital experience that sets them apart from the rest?
The answer is surprisingly simple – implement a strategy for application programming interfaces, or APIs, that sets you up for success.
An API allows two systems to communicate with one another and essentially provides the language and contract for how two systems interact. Each API has documentation and specifications which determine how information can be transferred.
Today APIs are leveraged to create seamless transactions, whether it’s connecting legacy systems to modern interfaces, like a database to a native mobile application, or empowering different types of systems to communicate with one another like Google Maps and your web application.
Over the years, companies have begun to rely heavily on APIs to drive business critical transactions because APIs are faster, allowing for rapid changes without building from scratch. They are also cheaper with best-of-breed solutions being assembled with the best parts and not just from scratch. APIs are also smarter and empower developers to retain language and framework flexibility.
An API strategy ensures there’s a clear vision, tied to goals and company objectives, so you can develop and release APIs that will ultimately add value for your entire organization.
Building an API strategy should involve aligning overall technology goals and visions and understanding where and how APIs can drive these. To get started, teams can identify business objectives and goals for your APIs and set key performance indicators to track. Credit unions should also test early and often and monitor APIs for availability, speed and functionality.
These can carve a path for success by mapping out a universal vision. With the high-level goals agreed upon, smaller tactics can be planned out accordingly. A key element of this is ensuring you select tools that support your specific needs currently and as they evolve over time.
Implementing APIs, with a solid path for success, can rapidly elevate digital offerings and create a seamless omnichannel experience for customers. With a plan for what the APIs will support, how they will be tracked and optimized, and a vision for what purpose these APIs will serve in the years to come, companies can craft a digital transformation plan that does not reinvent the wheel.
Whether it’s using APIs to help connect a legacy system to a native mobile app, adding Google Maps to your website or viewing your credit score, companies can drastically enhance user experience without breaking the bank (or your developers).
Investing in an API strategy and the
So the question is, will you be an innovator and lead the charge in digital transformation with your API strategy, or an imitator, waiting for others to test the waters first?
