{"id":3048,"date":"2020-07-30T12:17:21","date_gmt":"2020-07-30T06:47:21","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3048"},"modified":"2022-12-23T00:26:39","modified_gmt":"2022-12-22T18:56:39","slug":"what-is-api-banking","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/","title":{"rendered":"What is API Banking and How it is Enabling?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The dawn of API in banking has resulted in significant changes concerning how financial operations are carried out. <\/span><span style=\"font-weight: 400;\">Recently, we have seen the emergence of many fintech innovations that have simplified money movement.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">Although APIs have been widely used for over a decade, their use has recently become prevalent in financial services.<\/span><\/p>\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e90b41451c5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e90b41451c5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#What-is-API-banking\" >What is API banking?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#How-API-banking-works\" >How API banking works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#Benefits-of-API-banking\" >Benefits of API banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#RazorpayX-API-banking\" >RazorpayX API banking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#Top-use-cases-for-RazorpayX-API-banking\" >Top use cases for RazorpayX API banking<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#Lending\" >Lending\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#Gaming\" >Gaming\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/business-banking\/what-is-api-banking\/#E-commerce\" >E-commerce<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-API-banking\"><\/span><span style=\"font-weight: 400;\">What is API banking?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">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\u2019s tools and services.\u00a0<\/span><\/p>\r\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x?utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX!<\/a><\/p>\r\n<p><span style=\"font-weight: 400;\">API banking refers to a set of protocols that makes a bank\u2019s 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.\u00a0<\/span><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"How-API-banking-works\"><\/span><span style=\"font-weight: 400;\">How API banking works<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">The same applies to banking.\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">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.\u00a0\u00a0<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">Let\u2019s consider an example where the bank is HDFC*, and the third-party company is RazorpayX.<\/span><\/p>\r\n<ol>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">HDFC bank allows RazorpayX to access its banking services, making transfers, balance query, and other functions available<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Next, the integration of HDFC\u2019s APIs with RazorpayX\u2019s products takes place<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Finally, RazorpayX makes API calls and fetches the necessary services from HDFC to further execute banking operations<\/span><\/li>\r\n<\/ol>\r\n<h2><span class=\"ez-toc-section\" id=\"Benefits-of-API-banking\"><\/span><span style=\"font-weight: 400;\">Benefits of API banking<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">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. <\/span><span style=\"font-weight: 400;\">This has created somewhat of a revolution in business banking.\u00a0<\/span><\/p>\r\n<ul>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">With real-time capabilities, get enhanced visibility of cash flow, cash position, and more, across currencies<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reduce administrative hurdles with regard to managing your finances like applying for a business loan, checking your creditworthiness, and more<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">With real-time capabilities, get enhanced visibility of cash flow, cash position, and more<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Have a single view of all your finances while being able to control, track, and analyse all financial movements, all in one place<\/span><\/li>\r\n<\/ul>\r\n<h2><span class=\"ez-toc-section\" id=\"RazorpayX-API-banking\"><\/span><span style=\"font-weight: 400;\">RazorpayX API banking<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<p><span style=\"font-weight: 400;\">With <\/span><a href=\"https:\/\/razorpay.com\/x\/\"><span style=\"font-weight: 400;\">RazorpayX<\/span><\/a><span style=\"font-weight: 400;\">, businesses can manage their entire financial operations and make timely payouts using our sleek dashboard or robust API.\u00a0\u00a0<\/span><\/p>\r\n<p><b>Integration is a breeze: <\/b><span style=\"font-weight: 400;\">With dev-friendly APIs, go live on your website, ERP, app, in just a few minutes<\/span><\/p>\r\n<p><b>Works all day, every day: <\/b><span style=\"font-weight: 400;\">Think outside of banking hours and move money whenever you want<\/span><\/p>\r\n<p><b>Scales with your business: <\/b><span style=\"font-weight: 400;\">Make 10 or 10,000 or 100,000 payouts, RazorpayX\u2019s APIs will back you up<\/span><\/p>\r\n<p><b>Save 10x on manual hours: <\/b><span style=\"font-weight: 400;\">With payouts, disbursals, payroll, and more on autopilot, sit back and relax<\/span><\/p>\r\n<p><b>All your cash flow, one platform: <\/b><span style=\"font-weight: 400;\">View, track, control, and analyse all money movement on the dashboard<\/span><\/p>\r\n<p><b>Make bulk payouts in a blink: <\/b><span style=\"font-weight: 400;\">No more upload slip-ups, upload all your contacts in one go to make bulk payouts<\/span><\/p>\r\n<p style=\"text-align: center;\">Suggested reading: <a href=\"https:\/\/razorpay.com\/blog\/simplify-vendor-payouts-razorpayx\/\">How Businesses can Simplify Payouts<\/a><\/p>\r\n<h2><span class=\"ez-toc-section\" id=\"Top-use-cases-for-RazorpayX-API-banking\"><\/span><span style=\"font-weight: 400;\">Top use cases for RazorpayX API banking<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n<h3><span class=\"ez-toc-section\" id=\"Lending\"><\/span><span style=\"font-weight: 400;\">Lending\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p><span style=\"font-weight: 400;\">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<\/span><\/p>\r\n<h3><span class=\"ez-toc-section\" id=\"Gaming\"><\/span><span style=\"font-weight: 400;\">Gaming\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p><span style=\"font-weight: 400;\">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<\/span><\/p>\r\n<h3><span class=\"ez-toc-section\" id=\"E-commerce\"><\/span><span style=\"font-weight: 400;\">E-commerce<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\r\n<p><span style=\"font-weight: 400;\">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<\/span><span style=\"font-weight: 400;\">)<\/span><\/p>\r\n<p><span style=\"font-weight: 400;\">Join businesses like CureFit, MPL, Dunzo, and others and streamline your business banking, and make payouts at scale via API while keeping costs low!<\/span><\/p>\r\n\r\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/x?utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener noreferrer\">Xperience the future of banking<\/a><\/div>\r\n\r\n<p>&nbsp;<\/p>\r\n<p>\u00a0 *<em>DISCLAIMER<\/em> &#8211; <em>The brand names used in the article are for illustrations only. Brand names and logos are the property of respective organisations.<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Lately, APIs have become significant to banks and fintech bodies. With API banking, streamlining financial services has become reality. Learn more.<\/p>\n","protected":false},"author":151156458,"featured_media":3049,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3437],"tags":[],"class_list":{"0":"post-3048","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156458"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=3048"}],"version-history":[{"count":10,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3048\/revisions"}],"predecessor-version":[{"id":7326,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3048\/revisions\/7326"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/3049"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=3048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=3048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=3048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}