Page 29 - ASR_Forewords

Foreword
API Revolution and Open Banking Evolution

HE hallmark of digital transformation of any
Tbank is being able to do business with
customers, wherever they are, across various
transaction modes or interaction types. Today
everything that goes into making a bank digital
like delivering new customer experience,
building software ecosystem and moving to
multi-cloud environment involves APIs.

APIs (Application Programming Interfaces) are
becoming, if not already become, the de facto
standard for building and connecting
developers to unlock new digital business
applications. In simple terms, APIs let software
modelsandopportunities.Indeed,theadoption,
talk to other software. API-based architectures
design, and management of APIs are increasingly
are designed for decentralized teams, very
drivennotbyITmiddleware requirements but by
lightweight governance, and iterative, fast
strategic business goals relevant to senior and
development.
top level management of banks.
API-first banks often release APIs quickly in the
ThefocusofbanksisonOpenBanking,whichisa
form of minimum viable products and then use
major source of innovation in the banking
analytics to iteratively and continuously improve
industry. Open Banking relies heavily on APIs. It
the APIs. As APIs abstract backend complexity
is threatening long-established banking
behind a consistent interface, they decrease the
practices and procedures. And banks are
understanding of backend systems that a
convertingthethreatintoagreatopportunity.
developer needs to possess. This shift
democratizes access to digital assets, making it It is in this background the IDRBT T eam has
easier for developers to leverage systems and attempted to put together all relevant
data. The success of UPI (Unified Payments informationonAPIsandthecurrenthandbookis
Interface) is to a large extent attributable to its the result of the effort. I am sure the handbook
API approach. serves as a good reference material for banks
and software companies that are working with
Banks have understood that APIs are not just
banksindevelopmentofAPIs.
integration technology to connect applications
anddatabutassoftwareproductsthatempower

Date: August 20, 201 9 (Dr. A. S. Ramasastri)

Place: Hyderabad Director, IDRBT

Handbook on Application Programming Interfaces (APIs) 01