This announcement was echoed in Finextra and addresses one of the fastest growing uses of technology in financial institutions, namely the use of APIs for interactivity between various systems. APIs have been around for many years, of course, but they were previously used as connectivity mechanisms for internal systems.
Now, with the start of open banking (from both a regulatory and market needs point of view), the more sophisticated use of APIs is becoming the main method of integration between FIs, their clients and their technological partners. . In this case, Citi reached 1 billion API calls through CitiConnect, the company banking communication platform launched in 2017.
“ This rapid increase in API volume is fueled by the many changes our customers are facing as a result of the rapidly changing business environment, including support for direct flows to consumers, new models of e-commerce, shifting from batch to real-time, and advance instant payments. Whether it’s to top up mobile wallets in India, disburse microloans in Argentina or pay instantly in the United States, Citi’s digital channel solutions play a central role in helping Citi Treasury and Trade Solutions (TTS) clients reach their goals and navigate an industry transformation. Citi has worked with leading enterprise resource platform (ERP), treasury workstation systems, and FinTech vendors to integrate API capabilities with the goal of creating a seamless onboarding experience.
We’ve written about using the API in business banking for the past few years at Member research, which is driven by things like PSD2 (Europe and institutions operating in Europe) and other regulatory initiatives in Australia and Hong Kong, as well as growing demand from corporate clients for easier experiences in products and services related to treasury.
This was again underlined in our CEP Outlook for 2021 (see below), a recurring theme for several years. The need for resiliency and product flexibility is a major driver of the growing shift to the cloud, another place where APIs proliferate. As one of the world’s leading corporate banking institutions, Citi is generally a harbinger of FI innovation.
“Our clients are looking to increase the efficiency of their treasury operations. Operational tasks that used to take days to complete are now completed in minutes, thanks to APIs, ”said David Terra, Executive Director of TOTVS. “TOTVS has partnered with Citi to initiate payment instructions and get real-time status updates. Using APIs allows us to help our clients reconcile transactions faster and more accurately. This in turn helps our clients to better manage their working capital. ”… The CitiConnect® solution offers more than 83 APIs for data and transaction-based services. These APIs allow customers to directly access products and services to provide a seamless, real-time banking experience. Services provided include self-service reports, real-time currency information, and account services such as statements, cut-off times and proof of payment. Transactions include payments, instant payments, payment requests and WorldLink® transfers.
Preview by Steve murphy, Director, Commercial and Corporate Payments Advisory Service at Mercator Advisory Group