Why API Integration Is Important In Digital Transformation

Claire Gibbons

It can be difficult for local financial institutions to keep up with the latest must-have features when digital technology is always evolving. This is where APIs can help position a lender quickly respond to the needs of the digital borrower. 

Increasingly, banks and lending institutions are using APIs to adapt to the evolving needs of their consumers and become more innovative in their digital banking efforts. In fact, banking and lending institutions use APIs every day. With API functionality, digital banking features like income deposits, bill pay and money transfers between accounts are possible.

What Are APIs?

API stands for Application Programming Interface. They are simple tools for communicating between software applications. Using APIs, financial institutions are collaborating with third parties to advance the banking industry. APIs allow bank applications to connect with existing technology from other firms. Thanks to APIs, this allows banks to provide seamless, efficient customer experiences while creating innovative banking solutions. 

Common Examples Of APIs In Everyday Use

It is possible to use APIs to connect virtually any process in practice. They can provide teams with premade tools and features, saving them the effort of creating these tools from scratch. Here are just a few common examples of APIs:

Weather Snippets: Google Search, Apple’s Weather app, and even your smart home device can provide rich weather snippets through an API that sends them global weather information in a format that’s easy to read.

Travel Booking: In addition to collecting flight and hotel availability via third-party APIs, travel booking sites are able to present the cheapest option for thousands of flights and destinations.

Online Payments: Stripe, PayPal and payments companies provide APIs to make integration of payments into any online application easy.

How Can Lenders Benefit From API?

Using APIs within digital lending technology allows third-party product developers to connect and seamlessly add new functionalities to the existing applications. Through a digital lending product that has an open API feature, banks and Credit Unions can customise their interfaces, much like mobile phone applications enhance the smartphone and help users easily complete all needed tasks. 

How Luna Connect Uses APIs To Transform Lending

Providing a digital platform for small and medium-sized financial institutions, Luna Connect’s features help institutions provide a better customer experience, make better decisions, and optimise customer interactions. Artificial intelligence, big data analytics, APIs and automated KYC are some of the technology tools that have contributed to the benefits. The platform is powered by multiple technology tools, and in several of these tools APIs are integrated. 

Digital Tools

Online Enquiries and End-to-End Applications

Provide personalised online experiences that mimic in branch and face to face experiences, enhancing the already great customer experience. APIs are used throughout this process to access proprietary and 3rd party data.

Remote Onboarding of New Customers

To comply with regulatory requirements, KYC (Know Your Customer) and ID&V (Identity and Verification) checks are conducted automatically via API calls. Luna Connect’s web interface and API integration enables users and their clients to perform this function without needing to download and install additional apps or software.

Management And Marketing Tools

Marketing integration

Luna Connect streamlines digital and traditional marketing campaigns with the integration of customer information, 3rd-party data, and lead sourcing. Leads for all channels are centralised on the platform, enhancing the efficiency of marketing campaigns. A user can instantly access and turn the data from an inbound channel into a useful piece of information via API integrations for online and email inquiries, and referrals.

Integration Tools

Integrating data from external sources, such as banks, is possible with Luna Connect platform’s integration layer.

Third-party information sharing 

Open banking and credit bureaus can be accessed securely and in real-time using API technology.

Agile/Open APIs

With Luna Connect third-party platforms can be integrated, including core banking platforms, quickly and easily using the Luna API platform.

Claire Gibbons
Claire is a Data Scientist at Luna Connect, and is passionate about Data Analytics, Machine Learning and Artificial Intelligence. Women and girls in Tech and STEM advocate.