What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
What is API
No wonder, for the world banking industry at least from a regulatory perspective, the last decade has been one of the most disruptive times. In the new era of transparency, financial institutions were forced to develop and authorities took unparalleled steps to ensure that consumer protection was maintained in the face of all business activity performed by banks.
Open Banking, which allows major banks to exchange consumer data with third parties, is among the most robust transparency campaigns. And Open Banking 's core application programming interfaces (APIs) are located.
Typically, APIs refer to software program technical interfaces. Today, the Internet of Things (IoT) is becoming increasingly sophisticated. In this way intelligent devices use APIs to deliver customer solutions
A smartphone may be used, for example, to pay for an item in a store, then to transfer details through an API call to check the balance of the bank account of the customer after payment. As such, APIs make communication between related parties with their many advantages more convenient and effective. And today, the faces of global banking are shifted.
This interface enables a third-party application to access common instruments, resources and valuable assets of the banking system, including financial information, customer accounts and catalogues of goods. This allows the bank and third parties to connect quickly, conveniently and inexpensively by APIs. And consumers can theoretically get a better overall experience with their financial affairs by having access to useful shared customer information.
For instance, an API could analyze customer transaction data to determine which financial services available are best suited to that particular customer, such as a lower-interest credit card and a specific loan product.
In the past few years, APIs have been particularly important to banks since Europe had been implemented throughout January 2018 by the Revised Payment Service Directive (PSD2). This policy has speeded up the development of APIs in order to build software and services that can benefit most from the data currently collected from financial institutions by third parties such as financial (financial) companies and online financial service providers.
Banks are currently deploying three main types of APIs
Private API
This API will only be available within the financial institution, thus enhancing internal processes, such as operational efficiency.
Partner API
A more open API accessible to favorite third-party partners of the bank. This allows Partner APIs to expand more via new channels than a private API. Such partners may include clearing halls, brokers, and custodial banks and can provide services via the bank's platform to their customers.
Open/Public APIs
This API does not require making business data available to third parties, as is usual at this point. Banks can use these APIs to build new businesses and build their customer base. The bank could, for instance, enable an API for a credit comparison application that would allow customers to buy new business for new loans.
Banking APIs — particularly open APIs — are now crucial to help lenders move from the traditional to the open banking system, to enable third parties to use bank services or offer their own customers the same service. They also encourage businesses to interact more directly than previously possible to their customers, thereby enhancing their customer experience. For example, a digital wallet helps payment services. Or the customer may monitor the nearest substation branch or Automated Teller Machine with the GPS (Global Positioning System) API.
Customer-specific APIs also are being created to provide customers with appropriate levels of security, such as bank alerts, debit payments and fund transfer services, enabling them ultimately to gain a better control over their finances. their financial information is tailored to their specific requirements.
In the long term, APIs could have a profound transformational impact on the future of banking by allowing financial institutions to connect with enterprises and consumers, securely and easily transfer information and to increase the range of products and services they can offer to potentially broader customer base.
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