Open banking is the future, so let’s secure the APIs

Open banking is the future, so let’s secure the APIs

Sponsored The future of banking is digital, of that there is no doubt. It may be at an early stage, but we can already see that future, as, all over the world, the banking community moves to embrace open banking.

We’re already using connected financial services, digital payments and the like, and banks are allowing cloud-based fintechs to use financial data to develop innovative services. Critical to the success of this vision is the need for the financial ecosystem to be entirely secure, always available and operate with no delays.

The path to this secure and available ecosystem isn’t an easy one, however, partly because it comes with the need to use APIs to exchange financial data.

Adrian Mountstephens, business development, payments and banking at Equinix, says that in fact the entire digital future of banking is linked to APIs. “APIs are an enabler of that digital future, they allow you to deploy quickly, to innovate, to launch quickly in new territories,” he says.

He gives the example of banking as a service as one innovation that is dependent on the use of APIs - providers deconstruct what a bank does and make each function available as a single API call, so any brand can use it. It means an airline or a retailer for example could issue credit cards in their name and customers could use it through an app on their phone.

APIs and security

But the use of APIs comes with a number of issues - the first one being security. As Lance Homer, global head of digital payments and banking ecosystem at Equinix, comments: “APIs open up an opportunity for innovation for the financial services industry, as banks allow fintechs t ..