Financial APIs, or Application Programming Interfaces, are sets of protocols and tools that allow different software applications to communicate and exchange financial data securely. These interfaces enable third-party developers to build new financial products and services by accessing specific functionalities or data from banks and other financial institutions. They serve as essential connectors for open banking initiatives and the broader fintech ecosystem. Financial APIs promote innovation and interoperability within the financial sector.
Context
The proliferation of financial APIs is a central theme in discussions about the modernization of financial services and the emergence of new business models. News often highlights how these APIs are driving innovation in areas like payment processing, personal finance management, and cross-border transactions, including those involving digital assets. Regulatory frameworks are concurrently developing to ensure data security, consumer consent, and fair competition in an API-driven financial environment.
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