Wells Fargo has introduced specialized application programming interfaces (APIs) tailored for its commercial banking clients.
“Our new APIs provide clients real-time, on-demand information so they can efficiently and seamlessly manage inventory, supply chain, and payments,” Daniel Pfeiffer, the bank’s head of receivables, trade and inventory finance, said in a news release Tuesday (Sept. 17).
“By expanding our API technology, we took a step forward in taking out the complexity of navigating various systems allowing clients to embed the functionality they need to manage their inventory and processes in their system of choice,” Pfeiffer added.
As the release notes, APIs are software applications that simplify and carry out a set of rules or commands, created by the owner, that connect digital worlds together to offer a secure way to exchange data, features and functionality.
“For example, e-commerce transactions offer consumers a variety of ways to pay for a purchase from your phone; those are APIs that are talking to each other so that the money is transferred securely and safely,” the bank said.
The release notes that the expansion gives customers immediate access to real-time data to potentially increase sales, improve liquidity, reduce credit risk, and lower expenses for “floorplan” and channel finance clients in sectors like auto, consumer electronics, outdoor products and equipment and technology.
“Wells Fargo’s API platform enables manufacturers, distributors, and dealers to directly connect from their system of choice,” the release added. “Updates will happen automatically and flow between trading partners so there’s no delay in sending and receiving information, and no need to manually enter, upload, download, or transmit important files, allowing clients instant access to critical business insights.”
As PYMNTS wrote last month, the banking sector is in many places burdened by outdated technology, though APIs could offer a viable path forward, allowing financial institutions to improve their digital capabilities and stay relevant in an increasingly competitive landscape.
A recent PYMNTS Intelligence and Galileo report, “Core Strength: FIs Must Modernize to Meet the FinTech Challenge,” underlines the urgent need for traditional financial institutions to update their outdated systems to keep up with digital-native competitors.
“The report reveals that 75% of banks struggle with implementing new digital solutions due to their legacy infrastructure, underscoring the critical nature of modernization efforts,” PYMNTS wrote. “As FinTechs continue to capture a growing market share, banks face mounting pressure to adopt agile technologies and innovative approaches.”
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