Think back to the 1990s. If you wanted to check your bank balance, send money, or apply for a loan, you had to go to the bank. That meant waiting in line, filling out forms, and sometimes waiting days for an answer. Now, you can do all of that on your phone in just a few seconds. It might feel like magic, but really, it’s because of the Fintech api. These are the hidden tools that help power the new way we use banks and money apps.
Fintech api have changed how banks and money apps talk to each other. They let systems connect in real time. This means you don’t need to do things by hand anymore. As a result, banks and fintech companies save time and provide faster service. Today, API developers play a big role in building secure systems. They make sure everything works smoothly behind the scenes. From paying with your phone to getting fast loan approvals, these APIs make banking quick, safe, and smart. And that’s why using a banking app today feels so easy and fast.
In this blog, we’ll explain how these powerful tools are changing money services. We’ll also show how businesses use them to stay ahead. Today, people want easy digital tools, and developers work hard to make sure apps and websites connect well. That’s why a good banking app works so fast and smoothly—because of well-made APIs.
What is Fintech?
Fintech stands for financial technology. It means using tech to make money services faster and better. At the heart of this are APIs, or Application Programming Interfaces. These tools help banks, money apps, and other systems share data safely and quickly. And this is what developers use to build tools that millions of people rely on, like apps for budgeting or banking.
Let’s look at an example. Picture an online store using Plaid’s Open Banking API. When someone checks out, this API checks their account, shows past payments, and confirms how much money they have. It does this in real time using encrypted data and strong security steps like OAuth 2.0. That means there’s no need to do bank transfers by hand. It also cuts down on fraud and builds trust with users. These smooth steps are thanks to smart developers who know how banking systems work.
For the company, it’s much easier too. They don’t have to build everything from zero. Instead, they use ready-made API tools to add banking features to their apps. This saves time, keeps things legal, and helps the app grow fast. All of this matters a lot if you’re building a banking app or any fintech tool. You want fast, safe data, and that’s what APIs give you. They are secure, flexible, and ready for what’s next—thanks to developers who keep improving them.
Fintech is the mix of finance and technology. It helps more people access better money tools. And the impact is huge. For instance, in the U.S., the number of people using tech to handle their money jumped from 58% in 2020 to 80% in 2022. That shows how mobile banking apps have become part of everyday life. And behind this change are developers and tech teams who build better apps and smarter systems for banking.
How Does a Fintech api Actually Work?
Fintech api might sound tricky, but it works in a simple way. Think of them like a waiter at a restaurant. You (the user) place an order. The waiter takes it to the kitchen (the server). Then the waiter brings your food (data) back to you. Let us show you how this works step by step:
The Request-Response Cycle (Step-by-Step)
- User Takes an Action:
You open your bank app. Then you tap a button to see your balance. That tap is the start—it’s called a “request.” - The App Sends a Request to the API:
Your app does not know your balance by itself. So, it sends a message to the bank’s system. It uses an API to do this. This is where API makers make sure your data stays safe. - The API Checks If You’re Allowed (Authentication):
Before doing anything, the API makes sure the request is real. It checks your login or other safety info. This proves you are really you. This part is super important and built into the app during app development. - The Server Finds the Right Data:
Once you’re confirmed, the bank’s server finds your account. Think of it like a giant file box. It pulls out your current balance. - The API Sends the Answer Back to You:
Now the API makes that info look neat. Then it sends it back to your phone. Your app shows the balance in just a few seconds.
Authentication and Authorization: Keeping Everything Safe
Safety matters a lot with money. Fintech api use many tools to keep your info safe:
- API Keys: These are like digital ID cards. They show the request comes from a safe app. Developers add these keys while building the app.
- OAuth Tokens: These are short-term codes. They let the app see your data without needing your password.
- Multi-Factor Authentication (MFA): This adds more safety. It may ask for a fingerprint, a code by text, or an email. This is very important in mobile banking apps.
Data Formats and How Information Is Shared
APIs need to “speak” in a clear way. That helps apps and servers understand each other. They use formats like:
- JSON (JavaScript Object Notation): This is simple and easy to read. It looks like a list. It works well with apps and is used a lot in mobile banking apps.
- XML (eXtensible Markup Language): This one is more detailed. It’s often used by old systems or big companies. API makers choose between these formats during app development, based on what works best.
These formats help keep things neat and easy to use.
Protocols and Endpoints
- Protocols (like HTTPS): Just like cars use safe roads, APIs use safe paths online. The most used one is HTTPS. It hides your data so no one else can read it.
- Endpoints: These are like doors. Every API has many “doors” for different jobs. One might be for checking balance, another for sending money, and so on. Your app knocks on the right “door” to get what it needs. Developers set up these endpoints to match what each app needs, especially in mobile banking.
In simple words, a fintech API does the hard work behind your banking apps. It links systems, keeps your info safe, and gives you answers—fast, easy, and secure. As digital banking grows, developers keep making these APIs better. This helps your banking app work well, stay safe, and show updates in real-time.
What Are the Main Types of Fintech api and What Do They Do?
Fintech api come in many forms. Each one helps with a different part of handling money. Let’s break down the most important ones and what they do in simple words. These APIs help power smart tools for money. They also help build new and better finance apps, like mobile banking apps. API developers use these tools to make apps that are faster, smarter, and more connected.
Payment Processing APIs
These APIs help businesses take payments online or in apps.
- They link websites or apps to payment systems.
- They handle payments, subscriptions, and refunds.
- They make sure payments are fast, safe, and correct.
You can think of them like quiet cashiers who make online payments work well. For API developers, these APIs are key tools. They’re often the first step when building e-commerce and mobile banking app features.
Banking APIs (Open Banking APIs)
These APIs let apps safely access your bank account—but only if you say so.
- They can check your balance, show your latest spending, or even send money.
- They help apps give tips, track budgets, or move money.
- You stay in charge of who sees your info and for how long.
It’s kind of like giving your money app a small, safe window to look at your bank. That way, it can help you better. These APIs are a big part of how mobile banking apps work. API developers make them safe and useful.
Investment APIs
These APIs help people invest using apps.
- They give real-time info about the stock market and more.
- They help apps give advice based on your goals and risk level.
- Some even let the app trade or invest money for you.
They turn your phone or computer into a smart money helper. These APIs are a big help for mobile banking apps that want to offer investment tools. API developers make sure they run fast and stay accurate.
Data Aggregation APIs
Lots of people have accounts in more than one place. These APIs pull all that info together.
- They collect info from many banks or finance apps.
- They show everything in one easy-to-see place.
- They help with money tracking, budgeting, and financial planning.
They help you see your full picture of your money on one screen. You don’t need to log into many sites. These APIs are great for mobile banking dashboards. API developers use them to build smooth and personal views of your money.
RegTech APIs (Regulatory Technology)
These APIs help businesses follow the rules.
- They watch for law changes and help companies keep up.
- They also watch for risky or strange money moves.
- They help stop problems and keep people safe.
You can think of them as rule-keepers working behind the scenes. They help apps follow laws like GDPR and PSD2. This is very important in mobile banking apps. API developers use them to make sure the apps are safe and legal.
Blockchain and Cryptocurrency APIs
These APIs make it easier to work with digital money.
- They give live data on crypto prices and markets.
- They let apps send or get digital coins using the blockchain.
- They help build crypto apps without needing deep tech skills.
They are like bridges that help apps talk to crypto and blockchain. As more mobile banking apps add crypto tools, API developers use these APIs more often. They help bring new features to life in a safe way.
What are the Benefits of Using Fintech api for Businesses and Developers?
You’ve already seen how APIs work behind the scenes to manage money in smart ways. But that’s just the tech part. So what happens when companies start to use them with a plan? In this next part, we’ll show you how APIs help speed things up, save money, and open new doors. These tools are not just for tech work—they’re game changers. Today, many API developers and app teams—especially those building mobile banking apps—use APIs to make faster, better, and smarter tools for users.
Cost Reduction and Efficiency
Fintech api helps cut down costs in many ways. When companies use APIs the right way, they see big gains. Many report a 30% jump in how much they get done and a 40% drop in how much it costs to build things. That’s because they can reuse tools that already work. API developers use this to speed up their work. It helps them build apps and new tools much faster and with fewer resources.
Also, APIs help lower the costs of running a business. In fact, they can cut down these costs by up to 30%. This happens because APIs help automate tasks and make things run more smoothly. This is super helpful in moving money around. With APIs, companies can move money up to 70% faster. And that means fewer people and less time are needed to get things done.
Enhanced Security and Compliance
Security is a big deal in the world of finance. Fintech apps face even more risks. In 2021, over 92% of hacking cases were in fintech apps. That’s a lot. However, APIs help by adding strong safety steps and clear rules to follow. If a company breaks these rules, it can cost them big, up to $14 million on average.
This is where API developers shine. They help build safe APIs that follow rules like GDPR and PSD2. When these are built right into the app, like a mobile banking app, it saves time and money on safety checks. It also helps companies avoid big fines and problems.
Innovation and Market Expansion
APIs also help companies grow. They make it easier to team up with others and try new ideas. Take Square, for example. By using APIs, it now serves over 4 million sellers. In just one quarter of 2021, it made $4.68 billion. That’s a 143% increase from the year before!
This kind of success comes from developers and app teams who use APIs to add new features. They also use them to connect with other tools and reach more people. If you’re building a mobile banking app, APIs let you add new services fast. That helps you keep up in a market that changes all the time.
Improved User Experience and Integration Success
APIs also make users happy. And happy users stick around. In fact, 84% of companies say connecting apps are super important to their customers. And when those connections are in place, customers are 92% less likely to leave.
Look at Bank of America. When it used Plaid’s API to bring all a user’s info together, it saw a 78% jump in how much users understood their money. That’s huge!
API developers make this happen. They help apps work well with other tools. So, if you’re adding a budget tracker or a better way to view accounts, APIs help you build a mobile banking app that keeps users happy.
Scalability and Global Reach
APIs help companies grow not just at home but around the world. They make it easier to connect with banks and payment tools in many countries. And here’s a big number: by 2030, the market for sending money across borders could reach $290 trillion!
Thanks to APIs, one connection can open doors to 100 fast payment paths and reach 190 countries. That means lower costs—up to 90% less for some payments. It also means access to more money types and markets.
For developers, this means they can build apps that reach people everywhere. This is a big win for mobile banking apps, where users might send money overseas or use different currencies.
Faster Time-to-Market
APIs help teams move fast. When companies use microservices and APIs, they often see a 30–40% boost in how fast they build things. They also speed up how quickly new tools can connect, up to 50% faster than the old ways.
This speed is a big deal in finance. Take JPMorgan Chase. With real-time APIs, it cut payment times from days to just 15 seconds. That’s a huge leap!
For developers and app teams, this means rolling out new features faster. That helps meet user needs and makes mobile banking apps more flexible and quick.
Third-Party Integration and Marketplace Success
Using APIs from other companies has become key. In fact, 67% of businesses now put money into API connections to help close more sales. And in big companies, more than 80% use marketplaces to show off and share their APIs.
When sales teams talk to customers, APIs come up a lot. Around 62% of businesses say they talk about API connections in most sales calls. That shows how much value APIs bring.
For developers, this means more chances to add helpful tools to apps. Think about things like investment tools, payment add-ons, or credit checks. These are often added into mobile banking apps using third-party APIs.
Real-Time Decision Making and Data Access
APIs also help companies make smart choices fast. And that’s driving a lot of growth in fintech. In fact, fintech is growing at 15% a year. That’s way faster than regular banks, which grow at only 6%.
One reason is that APIs let companies get data right away. That means they can react fast. And this is helping new markets grow, too. These places are expected to make up 29% of global fintech money by 2028, up from 15% now.
For developers, real-time features are now a must. Mobile banking apps need to be quick and smart. APIs help them get there. They give users and companies the info they need right when they need it.
These facts and numbers show that Fintech API is more than just a tech tool. They help businesses grow, work better, and reach the world. They also keep things safe and follow the rules. Thanks to developers and new ideas in app building, especially for mobile banking apps, APIs are shaping the future of finance in big ways.
What is the Future of Fintech api?
Fintech api are changing how people and companies use money. They now help us do many things, like making payments, using AI tools, and sending money in real time. APIs are now the main building blocks of modern finance. And the numbers show just how big this change is. By 2033, the global fintech market could hit USD 1,583.05 billion. It’s growing fast, at 25.18% each year from 2024. Just embedded finance alone, which uses APIs a lot, might reach $7.2 trillion by 2030. That’s a yearly growth of 32.8%.
Because of this, APIs are not just tools for tech teams anymore. They are now the base of the whole finance world. So, what’s next for fintech api? Let’s take a look at what’s coming—from what API developers are building, to better mobile banking apps, and new tools to build apps faster.
Embedded Finance
Embedded finance is changing how we use money. It adds financial tools right into apps we already use—like ride-hailing or shopping apps. APIs make this possible. They help add features like payments, loans, and insurance into everyday apps. API developers are building easy-to-use tools and kits. This helps other teams build apps faster and add new features easily.
This market might grow to $7.2 trillion by 2030. It’s growing fast—about 32.8% every year. Right now, North America makes up 48% of global fintech money. But by 2028, that might drop to 41%. At the same time, other places like Africa, Asia-Pacific, Latin America, and the Middle East will grow. By 2028, they might make up 29% of global fintech income. This is thanks to APIs and more people using mobile banking apps.
Open banking is helping too. In the UK, more people are using it in Europe, PSD2 rules allow banks to share data safely in Australia, the CDR law gives people more control over their data. These changes give API developers more chances to build secure, smart, and useful tools for mobile banking apps.
AI and Machine Learning Integration
AI and machine learning are adding brainpower to the fintech api. These tools don’t just do math. They help stop fraud, make apps more personal, and save time and money. In fact, banks may cut their costs by 22% by 2030 with the help of AI. That could save the world $1 trillion.
Onboarding is faster, too. AI could cut sign-up time by 30%, from 11 minutes to under 8 by 2028. That’s great for developers building mobile banking apps. Faster onboarding means better apps and happier users.
Fraud detection is better as well. AI systems have cut fraud by 10–20%. Around 75% of banks using AI saw fewer fraud cases. Customer support is getting smarter, too. AI chatbots and tools now help banks save up to 80% in support costs. AI is getting better at chatting, too. Accuracy has improved by 25%, so users get help faster and easier.
More companies now trust AI. About 72% of them are already using or building AI tools. Around 79% have clear plans to use more AI soon. This gives API developers a big chance to build better financial apps. They can now focus on making things faster and more personal, especially for mobile banking apps.
Real-Time Payments and API-Driven Banking
One big trend in fintech api is real-time payments. People now expect to send or get money right away. Fintech api makes this happen. Tools like FedNow and RTP are becoming popular. They move money faster, with fewer mistakes. These tools are built with smart APIs made by great developers.
Big fintech companies show how strong APIs can be. For example, Square made $4.68 billion in just one quarter in 2021. That’s a 143% jump from the year before. It now helps over 4 million sellers using its APIs. Stripe is another huge name. It works in over 46 countries and was worth $50 billion by 2023. Robinhood is also using APIs to help people invest. It now has over 23.2 million users.
These wins show that API systems can grow fast and handle a lot of users. They also make mobile banking apps better. You can now transfer money or check your account in real time. That helps developers build even better apps in the future.
Security and Compliance Evolution
As APIs become more important in finance, security is a big worry. The numbers show why. In 2023, the cost of a data breach was $4.45 million. That’s 15% more than in 2020. Banks saw 47% more API security problems. Also, attacks using stolen login info rose by 71%. So, stronger security is a must.
To fight this, banks are spending more on cyber safety. In 2023, spending on this reached $188.1 billion. It’s growing 13.9% each year. Also, 25% of the company’s income now goes to meeting safety rules.
The new fintech API now comes with better safety tools. These include strong encryption, two-step login, real-time checks, and regular tests for weak spots. At the same time, developers must follow tough rules, like GDPR in Europe, PCI-DSS for data safety, and PSD2 for open banking.
All of this shapes how APIs are built. Developers must make tools that are safe, follow rules, and work well in mobile banking apps.
Conclusion
The fintech market is growing fast. It’s worth USD 340.10 billion in 2024 and may hit USD 394.88 billion in 2025. That’s a yearly growth of 16.2%. APIs are the main reason. They help new ideas grow and make services faster and better.
Fintech api have changed how we use money. They let us send money fast, invest easily, and do more with fewer steps. APIs are now the core of finance. As APIs keep improving, they’ll shape what money looks like tomorrow. More features, better speed, and personal touches will come from APIs.
Companies like Stripe, now worth $50 billion, show the power of APIs. As rules and tech change, APIs will help even more. They will lead the way in building better, easier, and safer money tools.
In today’s fast world, if you ignore fintech api, you might fall behind. The market is growing fast. If your business doesn’t keep up, it may lose customers and fall behind smarter rivals. Don’t wait.
At Linkitsoft, we build strong fintech api. We make secure payment systems, real-time banking tools, and easy-to-use data apps. Our team knows how to make APIs that fit your needs. We build fast, smooth, and powerful tools for web and mobile banking apps.
We help companies grow, work better, and stay ahead. Waiting too long or choosing the wrong team can cost you money, time, and chances. But with Linkitsoft, you get the right help. We give you strong APIs, smart support, and real results. Don’t risk falling behind. Call Linkitsoft today. Let’s build the future of finance—together.
