Adoption of API for future fintech

Tinuku ~ Fintech or financial technology refers to emerging technological innovations in the financial sector, including innovations in literacy and financial education, retail banking, investment and cryptocurrencies. Fintech is a pearl in the desert offering a variety of services, which make financial transactions cheaper and efficient for business development.

Tinuku Adoption of API for future fintech

Within 10 years, fintech business players jumped from 850 to 3100 companies. Investment in the fintech industry, especially in Asia Pacific, jumped from about 880 million US dollars in 2014 to nearly 3.5 billion US dollars in the first 9 months of 2015.

Last year, globally investment in the fintech industry reached 22 billion US dollars, up 75 percent. In Asia Pacific it even quadrupled to reach 4.3 billion US dollars where the majority came from China (1.97 billion US dollars) and India (1.65 billion US dollars).

Collaboration startup

The fintech industry is considered positive and will work in many parts of Asia. In Indonesia, according to the Fintech Indonesia Association (AFTECH) report, there are at least 157 startup companies currently operating fintech and have achieved transaction value of more than 18 billion US dollars.

This figure is believed to continue to increase in line with the potential market is very large. The Indonesian government also encourages banking and non banking institutions to collaborate with fintech players.

The fintech company has a lively and fast moving character. They are driven by the idea of change in the digital world, which changes culture and capabilities simultaneously. The company's DNA fintech and start-ups are innovations.

They are set up to break down and offer new services rapidly and constantly changing over time. Meanwhile, large companies have assets of strong branding, a careful balance sheet, broad customer base, operating licenses, and other important assets to grow in any condition.

With the rapid development of technology, fintech is expected to enter the competition through partnerships with various companies, financial institutions and government agencies to create cutting-edge solutions. Collaboration is the key to ensuring this innovation is realized, not all things can be built alone.

Acceleration and cheaper

Most end-to-end experiences occur between domains. The thing that was initially difficult to do, has now become easier. Application Programming Interface or API allows companies to collaborate, build from existing innovations.

The API allows companies to focus on selecting one element and then connecting it to the elements to gain a broader perspective. Or, build own focus and connect with others to gain a broader perspective.

Accenture said 71 percent of companies expect APIs to be adopted across industries within the next two years from 2015. Although transformative, API is just a platform. The value of an API depends on the quality of the connected elements.

All parties need to improve their ability to deliver solutions, view opportunities, challenge, input or incorporate different APIs and other capabilities to design a solution to achieve goals. APIs become the standard for companies to share data, experience smart, seamless and omni-channel as per the needs of consumers.

Collaboration plays an important role in connecting ideas with capabilities in ecosystems, wherever they come from to create a future transaction experience. In this case, collaboration with the fintech community to accelerate and expand the scale of financial services innovation by leveraging the strength of its global network.

Migrating to a new digital transaction experience can be accelerated to support consumers who increasingly rely on device connectivity in shopping, paying and receiving payments.

The purpose of API adoption is to create an open market where developers can publish their own digital applications and payments, download examples of programs developed by other developers, and partner with financial institutions and merchants to open service solutions to the market.

With that, the fintech industry will grow rapidly in the next few decades, and together, is committed to partnering and creating new products and experiences for consumers, without compromising security.