With new regulations such as the Revised Payments Services Directive (PSD2), allowing for more innovation in payments, corporate treasurers can make a move from batch processing to real-time environments. APIs can offer speed and convenience to corporate treasuries. In fact, two of the fastest-growing types of APIs are in finance and payments. In terms of cash positioning, APIs can update account balances in real-time, all the time. Using an ACH API, banks can send payments to vendors, customers, and employees at aunty time. Besides, an account validation API can be used to accept new customers immediately. APIs are ushering in the massive shift to real-time everything.
Corporate treasurers move to real-time processing
Corporate treasurers despise batch processing. However, APIs can transition batch processing to real-time processing. Further, with the adoption of PSD2 in Europe, APIs have garnered even more momentum. PSD2 facilitates more competition in banking within the EU and mandates that banks use APIs for payments and account services. It’s critical to note that APIs have been around for years. They’re increasing in popularity not just because of the PSD2 but also because underlying programming languages have become more robust. It’s really about composable banking and optimizing agility, freedom, and speed.
Dig deeper into APIs
APIs are designed to help build better applications. Banks can use APIs to facilitate faster connectivity than what has been used in legacy environments. A common complaint among corporate treasurers has been the lack of real-time visibility into cash and treasury management platforms. APIs can convert reporting into real-time reporting. Using BAI or MT reporting forces corporate treasurers to have to search for updates within the bank portal. Yet, APIs can offer immediate reporting on eBAM processes and payments. Here are other areas where APIs can initiate real-time everything:
