API has been a significant disruption in the last five years. Before API, technology was all a standalone topic. But today, apps are interconnected and intertwined. You have digital lending solutions making use of the cloud. You have food ordering apps making use of maps. This is made possible by over 90% of developers who use APIs. Developers spend almost 30% of their time coding APIs to facilitate this feature. The industry is so huge that the API world is projected to be valued at $5.1 billion by 2023.
But what is API?
API stands for Application Programming Interface. It is a protocol that helps build a connection between two operating systems, tools, or applications. So, every time you use an app on your phone, you use an API. Let’s understand this with an example. When you use Lyft, you see a map showing your driver’s real-time location. This is possible because API is helping Lyft get information from Google Maps.
API is the deal for organizations in the tech world today. Discussions earlier were centred around how APIs let two systems interact with each other better. However, the focus has now shifted to comprehending the role they play in digital transformation.
Here’s what businesses needed:
- An atmosphere that connects key functions of sales, finance, human resource, customer service, and more together.
- A multi-directional flow of information and ideas by integrating back and front office operations.
- A 360-degree omnichannel customer experience across devices and applications.
- An overall view of the business in one glance.
- Quick supply of data from all channels to a centralized system to make informed decisions.
Here’s how API is helping in digital transformation:
- Risk-free legacy modernization: Transforming legacy business systems without disruptions is a major challenge and requirement. API helps organizations modernize and integrate these legacy business systems without much inference. It binds data, processes, and systems together.
- Connected enterprise: To get real-time insights you would need API. Such protocol connects the enterprise and creates a seamless shift of assets and data within the organization.
- Better decision making: API allow businesses to create an integrated and well-connected set-up that provides a comprehensive view of operations. This fuels better decision-making.
- Governance and security: Some organizations use various kinds of systems and applications. Instead of creating an individual control and governance system, API provides for a unified way of administrating governance and security.
How API is helping with Digital Lending Solutions:
API helps financial institutions adapt to the changing needs of their consumers. It allows them to be more innovative with their digital lending solutions. Some of the benefits are:
- It aids lenders to make fast decisions on loan applications by collecting data from third government or non-government agencies.
- Lenders and financial institutions can use third-party suppliers through APIs if their operations align well with those of those vendors’ alternatives for digital banking. This essentially helps in the underwriting and the collection of important papers within the documentation process.
- API lets financial institutions integrate with services that enhance the digital lending experience which provides pre-filled information on the application forms, thus, saving time.
- Workflow automation provided by API is the biggest advantage. Augmented automation gives benefits, reduces errors, and adds to seamless operation.
Lenders essentially get a bad name for being too slow and non-responsive. The customer sees lending as an ordeal. On the other hand, digital lending solutions like Tavant are at the forefront making loans easier for borrowers.
Tavant uses API to provide a vast wealth of data on your customers. Categorized on movements, behaviours, and preferences, this data can help organizations create a personalized experience for their customers. APIs keep a track of the accuracy of customer data. It helps in filling the gaps without connecting with the customer directly.
APIs also help customers stay informed and updated on their applications by adding a tracker. Real-time insights for the borrowers as well as the lenders, plus automated notifications on when something’s needed from the customer’s end, can reduce delays and make your lending model effective.
API seems to be an efficient bridge between legacy systems and new updates, to provide for an uninterrupted and undisrupted experience for users.
TIME BUSINESS NEWS