Embedded Finance, Where APIs Rule Fintech - 42flows.tech

Not long ago, “banks” were imposing physical buildings that had the hushed tone of a library and glass windows that kept the customers at arm's distance from the bank. Enter the digital age with the new mobile-first entrants, and there has been a tsunami of innovation.?

We have also seen a sea change in the direction of regulations. While banks are still highly regulated, there are now many more opportunities and ways to engage with banking services both as a service provider and as a client. Open banking has been that key change of direction opening up banking services from their silos and allowing for new innovation via the banking API.?

Access to these APIs allows for financial services to be embedded in many new applications. The first wide-scale adoption is payments, which are embedded in apps. Many new payment provider companies can use open banking relationships to offer you instant transactions, no matter where you are and what currency you use.

However, as Annerie Vreugdenhil,? Chief Innovation Officer at ING, wrote in her article on Finextra, this is only the beginning.?

“finance is racing ahead in other areas like insurance, lending, wealth management and stock trading. In 2030, the embedded finance market is set to capture more than seven trillion dollars in value.”

She cites two innovation use cases:?

• Tesla has an in-house insurance program offering customized coverage.
• Shopify has partnered with payments provider Stripe to allow consumers to open bank accounts directly on its platform.

Shortening the Path from Consumer to the Bank with 42flows.tech

42flows.tech have been leading experts in the use of IBM’s low-code API, and integration platform Node-RED.?

This lightweight low-code platform allows for?

• The rapid development and testing of API's, offering new backend services.?
• Application of consistent security standards to all endpoints
• Monitoring all endpoints automatically and making changes without modifying code?

Thanks to all of these, 42flows.tech managed to lead fintech customers to bring new services to the market faster with fewer resources.?

Aggregated Services the Future of Embedded Finance APIs

Simple single services are just the beginning of the Embedded finance future. And while many legacy banks are still struggling to offer these,? the innovators are moving ahead to support smarter intelligent APIs that offer aggregate functions using Graphql.?

Similar to open-source Node-RED, GraphQL was initially created in 2012 by Facebook, later open-sourced in 2015 and is now overseen by the GraphQL Foundation.

Currently, API customers may have to make a dozen queries to get authorization, multiple account details, existing savings, insurance or other products. Now Graphql can allow you to make that with a single query. Resulting in faster response and better customer service.?

A single query can securely onboard new customers, tailor an offering, apply for financing,? make a payment and complete the transaction end-to-end with the bank.?

The future fintech creates a link between the entire commercial ecosystem that involves financial entities and government entities to exchange information that helps customers and institutions providing services while keeping the customer data secure and avoiding double entry of data.?

This allows our partners to stay on top of business and keep on innovating to deliver more value. This is how 42flows.tech delivers the future, fintech, fast.

Talk to Us?

If you would like a future-ready fintech platform, say hello at [email protected]. Or chat with [email protected] on Linkedin.?

Some of the most successful fintech companies have introduced public API docs using GraphQL; including Braintree and Shopify.?