API Integrations to Processors & CRMs
UNDER BLOG read
Thursday August 18, 2022

API Integrations to Processors & CRMs

Andy Roth

  • Application Programming Interfaces (APIs) are sets of protocols and tools that allow software programs to communicate directly with each other regardless of who developed them
  • API integrations help FinTech develop innovative software solutions that protect sensitive information while making data easier to retrieve
  • Integrated software services keep existing customers from shopping around, because the same account can now be connected safely to many API-integrated apps and services, making it more attractive
  • Under develops system solutions built so merchant account providers can utilize their digital application to collect data and automatically send it to a processor’s onboarding system or a CRM

To get started, application programming interfaces (APIs) are sets of protocols and tools that allow software programs to communicate directly with each other regardless of who developed them. For example, many large businesses use dozens, if not hundreds, of different apps to keep their operations running smoothly. API integrations connects two or more applications for a secure exchange of data bi-directionally.

Financial APIs are built to integrate a financial institution’s core banking platform with multiple third-party applications that enable consumer-permissioned access to account information. These apps can ensure secure access to information such as account and routing numbers, balances, and transaction history. With API integrations, FinTech companies can build customized, responsive, and data-driven financial solutions for their clients. In addition, traditional financial services are often reluctant to update costly legacy systems, allowing private companies to build the financial management tools consumers demand.

ISOs and sales agents can be most effective when they find and faithfully use all the options available through CRM software. A good CRM is a powerful tool, but it needs to function correctly with all the other tools available across your sales stack. Ideally, your CRM will become the hub for all the organization’s sales activities. Integrations combine the strengths of individual apps to create more powerful centralized software solutions that deliver the reliable performance needed to support merchants and their processors.

Companies are often reluctant to switch a CRM due to costs, learning curves, and the time it takes to install and populate a new system. However, a new breed of customer relationship management tools—like HubSpot, SalesForce, and IRIS CRM—make it easier to switch by focusing on making integrations easier.

How Do API Integrations Reduce Time and Duplicative Data?

API integrations help FinTech develop innovative software solutions that protect sensitive information while making data easier to retrieve. Centralized data storage reduces teams’ time searching through multiple apps to find the data sets they need.

In addition to saving time, the best software solutions can eliminate duplicate sets of information that often occur when using multiple apps. As data privacy laws continue to emerge and become more stringent, your collected data may be subject to audits. Duplicated data sets that you may be unaware of can expose your company and customers to unnecessary risk.

Centralized data is not only easier to access but also to protect.

How Do API Integrations Help Complete the Onboarding Process?

As the FinTech space gets increasingly crowded, it’s more important than ever to provide customers with an exceptional onboarding experience. Now that customers have become more reliant on the digital world, their expectations for personalized experiences have forced brands to aim higher. Especially when it comes to mapping the customer journey. According to Adobe’s 2022 Digital Trends report, only 11 percent of individuals surveyed believe their digital experiences exceeded expectations. To compete successfully in a digital-first economy, businesses have a long way to go to meet and exceed customer expectations.

Companies can dramatically improve retention rates by investing in better consumer onboarding experiences while easing administrative costs. A win for the customer is also a win for the bottom line. 

In addition, onboarding allows users to set up biometrics. One for two-factor authentication, security questions and answers, and the other security protocols that help protect their data. Finally, establishing trust early is the key to establishing long-term customer relationships. And trust is not enough.

If Amazon’s success has taught us anything, it’s consumers want what they want, and they want it fast. If the process takes too long or is complicated, they’ll find a competitor that understands their need for safety and expediency. To be successful, onboarding can’t feel like a chore. By automating processes to increase conversion, and decrease attrition, must be top of mind.

Why Aren’t More Companies Integrating?

Integrated software services not only keep existing customers from shopping around, they establish FinTech as the new center of consumers’ financial lives. That’s because the same account can now be connected safely to many API-integrated apps and services. This makes it more attractive to customers. For example, when consumers link a financial account to a FinTech app or service through Plaid, their average monthly card spending increases by nearly 30%. And not only do they spend more; they buy more often.

The biggest institutions have invested millions of dollars in building and maintaining their legacy systems. This often the reason why they are inclined to maintain the status quo. Instead, they look over their shoulders as smaller, more agile companies slowly siphon away their customers.

With so many options available, it’s hard to understand why more companies aren’t choosing better performance, more transparency, and enhanced security. Change is necessary to keep up with consumers who won’t hesitate to jump ship for a better online experience.

Why it’s Important to Store Data in a Central Location

In business environments, virtually every piece of software collects its own set of data. If companies are using dozens or even hundreds of apps to perform different functions, then what data should they use? For example, POS systems gather transactional data to help with staffing and inventory management. But, if you need information about overhead, cost of goods, or logistics, you’ll need to check multiple data sets.

As you can imagine, accessing all these different data sets can become very complex. To get the right data at the right time, your business needs a data management strategy. One that focuses on helping gathering, storing, accessing, and securing data in a central location. In addition, centralized data access allows your teams to gather meaningful insights that can improve operations, boost staff morale, and offer flawless customer transactions.

The Difference Between Open and Closed APIs

Should you use open or closed APIs? It depends on how much control you want over how the application is used. Opening APIs can drive additional revenue by allowing external developers to incorporate your app into their clients’ software solutions. As usage expands, so does your additional revenue stream.

Giving outside developers access to open APIs may also lead to innovative ways other applications can use an app to complete specific tasks. Outside teams can improve performance or create additional services that complement the original developer’s vision.

Of course, there will always be circumstances where using an open API would not make sense. For example, if a third-party developer were developing an app to circumvent specific content like commercials, streaming services like Hulu would want to close access to specific APIs. As a result, using an open API could leave them vulnerable to losing valuable advertising dollars.

On the other hand, that streaming service must share certain data to accommodate the multiple devices used to view their content. In this case, companies will choose to operate a hybrid model that uses both open and closed APIs. Share what you need to provide the best end-user experience while securing necessary data to protect your business model.

With closed APIs, the application owner retains complete control, allowing their company’s developers to make updates or to create additional applications. An application publisher may choose to start with a closed API. Then, open it for future development once they are satisfied with its capabilities.

Under Makes Integrations Seamless

To help reduce onboarding time and maximize productivity, Under develops system solutions built so merchant account providers can utilize their digital application to collect data and automatically send it to a processor’s onboarding system or a CRM. The Under method facilitates integration by instantly passing data. Sales agents can focus on selling instead of slogging through administrative busy work. Their solution provides all the checks and balances with Plaid and KYC/KYB.

API Integrations eliminates roadblocks that often come with underwriting by prescreening all clients before advancing them to an underwriting review. This expedites underwriting and, therefore, can offer quick response times to clients. Under gives ISOs, Agents, PayFacs, and Financial Services companies the tools to automate mandated identity and banking verification. By minimizing supporting documentation, merchants get quicker approvals. Under delivers simple and secure transactions with unwavering support from a dedicated customer service team that

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