The dawn of API in banking has resulted in significant changes concerning how financial operations are carried out. Recently, we have seen the emergence of many fintech innovations that have simplified money movement. 

Although APIs have been widely used for over a decade, their use has recently become prevalent in financial services.

Understanding API banking

API (Application Programming Interface) traditionally pertains to the tech interface between software programs. This interfacing ability facilitates a third-party application like RazorpayX, to synchronise and connect to a bank’s tools and services. 

API banking refers to a set of protocols that makes a bank’s services available to other third-party companies via APIs. This helps both banks and third-party companies augment their complementary specialties and offerings more than they can provide to their customers by themselves. 

How API banking works

Over the last few years, APIs have become particularly significant to banks and fintech bodies. APIs provide better means to share data, integrate with systems, and personalise services, making financial services quick and efficient. 

The same applies to banking. 

Banks grant secured access to their financial services to third-party platforms, helping companies build products around banking services. Essentially, the core of the banking operation remains the same, but the experience is heightened.  

Let’s consider an example where the bank is HDFC*, and the third-party company is RazorpayX.

  1. HDFC bank allows RazorpayX to access its banking services, making transfers, balance query, and other functions available
  2. Next, the integration of HDFC’s APIs with RazorpayX’s products takes place
  3. Finally, RazorpayX makes API calls and fetches the necessary services from HDFC to further execute banking operations

Benefits of API banking

With API banking, innovators have more flexibility to provide the best features and services to streamline financial services, thereby creating a surge of competition and innovation in fintech products. This has created somewhat of a revolution in business banking. 

  • With real-time capabilities, get enhanced visibility of cash flow, cash position, and more, across currencies
  • Reduce administrative hurdles with regard to managing your finances like applying for a business loan, checking your creditworthiness, and more
  • With real-time capabilities, get enhanced visibility of cash flow, cash position, and more
  • Have a single view of all your finances while being able to control, track, and analyse all financial movements, all in one place

RazorpayX API banking

With RazorpayX, businesses can manage their entire financial operations and make timely payouts using our sleek dashboard or robust API.  

Integration is a breeze: With dev-friendly APIs, go live on your website, ERP, app, in just a few minutes

Works all day, every day: Think outside of banking hours and move money whenever you want

Scales with your business: Make 10 or 10,000 or 100,000 payouts, RazorpayX’s APIs will back you up

Save 10x on manual hours: With payouts, disbursals, payroll, and more on autopilot, sit back and relax

All your cash flow, one platform: View, track, control, and analyse all money movement on the dashboard

Make bulk payouts in a blink: No more upload slip-ups, upload all your contacts in one go to make bulk payouts

Suggested reading: How Businesses can Simplify Payouts

Top use cases for RazorpayX API banking

Lending 

Lending companies like Kissht and EarlySalary have been unable to disburse loans to their customers instantly owing to their dependencies on manual processes and cumbersome banking tech. With RazorpayX, these companies were able to disburse loans within seconds

Gaming 

A key component of making successful games is the process of ensuring winners get rewards, and fast. Dependencies on net-banking and manual methods were not optimal for progressive gaming companies. RazorpayX has helped companies like Mobile Premier League, RummyCulture, Pokersaints, and many more to transfer winnings immediately, and with ease

E-commerce

E-commerce companies that provide multiple payment options to their customers have traditionally not been able to process refunds for all methods with equal speed owing to an inconsistent customer experience. Cure.fit, Voylla.com, and other players in the market use RazorpayX to make instant refunds to their customers, irrespective of the payment mode (including CoD)

Join businesses like CureFit, MPL, Dunzo, and others and streamline your business banking, and make payouts at scale via API while keeping costs low!

 

  *DISCLAIMERThe brand names used in the article are for illustrations only. Brand names and logos are the property of respective organisations.

Harshitha Rao
Author

Harshitha is a content marketer at the future-forward RazorpayX. She has an insatiable love for travel and culture, rock music, and the work of Neil Gaiman.

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