Woodcore Weekly #3: How Do APIs Work in Banking?
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Welcome to Woodcore Weekly, your go-to newsletter for the latest in banking and financial services. Every week, we bring you:
?? Insights: Use Cases of APIs in Banking
As consumer preferences shift toward digital banking channels, banks are embracing new technologies to deliver enhanced customer experiences and accelerate innovation. One of the key enablers of this transformation is the use of APIs (Application Programming Interfaces).
APIs act as bridges between different software systems, allowing them to communicate and share data seamlessly. In banking, APIs enable secure and real-time access to financial data, facilitate transactions, and integrate third-party services—all while ensuring robust security and compliance.?
For example, APIs power features like account aggregation, instant payments, and personalized financial insights, making banking more convenient and intuitive for customers.
By leveraging APIs, banks can innovate faster, partner with fintechs, and deliver tailored solutions that meet the evolving needs of their customers.?
Curious about how APIs are revolutionising the banking industry? Check out our blog post.
?? What’s Happening in Banking?
Safaricom and KBA propose integration of M-PESA with Pesalink
Leading Kenyan telco, Safaricom, and the Kenya Bankers Association (KBA) have submitted a proposal to the Central Bank of Kenya (CBK) to integrate mobile money transfer service M-PESA with PesaLink, the interbank payment system connecting 39 banks nationwide.
The integration could “make transferring money between mobile wallets and bank accounts faster and more seamless for millions of Kenyans, bridging the gap between mobile money and the formal banking sector.”
Visa makes strategic investment in Nigerian unicorn Moniepoint
Nigerian fintech Moniepoint has secured a strategic investment from Visa, a global leader in digital payments, three months after raising $110 million in a Series C funding round.?
The investment marks an important milestone in Visa’s commitment to advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa.
African Bank and Visa renew strategic partnership to drive financial inclusion
African Bank and Visa have officially renewed their strategic partnership for seven years, reinforcing a shared commitment to innovation, security, and financial inclusion across South Africa and beyond.
In a statement, the firms say the renewal of the partnership marks a significant milestone in the long-standing relationship between the two institutions, underscoring their mutual goal of delivering enhanced banking experiences to customers.
Indonesia’s BTN to acquire Bank Victoria Syariah for $65m
Indonesian state-owned bank BTN is set to acquire PT Bank Victoria Syariah (BVIS), a Jakarta-based commercial bank providing sharia-compliant services, in a deal valued at around $65 million (IDR 1.06 trillion).
BTN has signed a conditional sales purchase agreement (CSPA) with current shareholders to acquire 100% of BVIS, and will fund the purchase through “internal funding sources”.
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Mastercard partners with ruya to launch Islamic banking cards in the UAE
Mastercard has teamed up with ruya, a new digital Islamic community bank in the UAE, to launch debit and credit card products for individual and commercial customers.
Mastercard has become ruya’s single scheme partner for all card issuance and beyond. The bank will also benefit from the services of Mastercard Advisors, which employs more than 3,000 consultants in 53 countries.
HSBC to shut down payments app
Leading British Bank HSBC is set to close its international money app, Zing, just a year after the app’s launch in the UK.
The closure of Zing, which launched in January 2024, comes amid cost savings and restructuring efforts by the banking giant.
?? Featured Read: Financial Services Trends and Predictions 2025 (RFI Global)
The world of banking is constantly evolving. What does the future hold for financial institutions in 2025 and beyond?
RFI Global answers this question in their report, “Financial Services Trends and Predictions 2025”.?
Based on data from over 200,000 consumers and 60,000 businesses around the world, they’ve put forward five significant trends that will shape the future of financial services:
1?? Cost-of-living pressures and new competitors will threaten customer loyalty, leading to more fragmented banking relationships.
2?? The digital revolution in financial services is set to accelerate, driven by fintech, digital innovations and AI.?
3?? Interest rate fluctuations will continue to reshape savings and borrowing behaviour, leading consumers to increasingly focus on flexible financial products.
4?? Emerging Affluent consumers will become a major force in shaping the global financial landscape, driving demand for sustainable, globally diversified investments and long-term financial security.
5?? With businesses planning to expand into new markets, efficient cross-border payments service represents a significant opportunity for financial institutions.
The report offers deep insights on how financial institutions can make the most of these trends for sustainable growth.
You can read the report here.
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?? Ready to transform your financial institution with a next-generation core banking system? Reach out to us today at [email protected] to learn more about our solutions or schedule a demo.
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