Describes the use of application interfaces (API) for coupling digital services among service providers in and with the financial sector. It aims at connecting modular application systems is based on the concepts of open banking and platform banking to enable efficient networking and sourcing strategies among businesses in the financial industry. In a broader sense, API banking allows the connection of actors in the primary value creation process (i.e., an automotive manufacturer like in Fig. 5) with providers in the secondary value creation process (i.e., financial service providers like the PSP in Fig. 5) in the sense of embedded finance (EFI).Image below shows the example of an automobile manufacturer, which links various payment services to a platform via API to process master and transaction data. It can also be interpreted as a form of outsourcing of financial functions of the car manufacturer.
More Term Definitions
- AI Application Areas
- Average Revenue Per User (ARPU)
- Account Information Service Provider (AISP)
- Algorithmization
- Automated Market Maker (AMM)
