Will corporate banking APIs replace existing connectivity?
Consulting firm Celent recently called enterprise-to-bank channel connectivity a critical enabler for businesses as they grow. Connectivity enabled by the application programming interface (API) supports multi-bank connectivity and data aggregation and enterprise resource planning (ERP), cash management systems (TMS) and l integration of accounting software.
Enterprise APIs have lagged behind consumer APIs in services such as real-time views of cash balances, with open banking being an enabler for consumer use cases. But that’s changing according to Kerstin Montiegel, head of customer connectivity at Deutsche Bank, who says the cost-benefit ratio is now shifting in favor of enterprise adoption.
The pandemic, the war in Ukraine, inflation and the disruption of global supply chains…have made multinationals aware of the weaknesses of manual treasury processes
Kerstin Montiegel, Deutsche Bank
“Besides more mature banking API offerings, there are several other reasons why this is happening now, including the pandemic, the war in Ukraine, inflation, and the disruption of global supply chains,” it adds. -she.
“These factors have made multinationals aware of the weaknesses of manual treasury processes.”
Virginie Martin, product manager for e-banking solutions at BNP Paribas Cash Management, admits that consumer APIs are more advanced, but attributes the delay in the development of enterprise APIs to a lack of standardization and overall market readiness. dissuading companies from using them directly or via their ERP or TMS.