According to Cornerstone Advisors’ 2020 What’s Going on In Banking Study only 20 percent of community banks deployed APIs before 2020 and 25 percent say they plan to do so this year; 53 percent of credit unions used APIs before this year, another 25 percent intend to use them this year; looking at Europe and you will see that 97 percent of banks have deployed APIs; Ron Shevlin of Cornerstone Advisors takes a look at three APIs that could help;p to revolutionize the U.S. banking system; Pinwheel, which is an API for payroll integration, could help with income and employment verification, paycheck-linked loans and allows for seamless switching of direct deposit accounts; Sila is an API for payments and ID verification, according to TechCrunch Sila could “Supplant ACH as the payments choice for companies who need to move money. Sila’s API for identity verification, which empowers developers to identify users and use that info in the company’s banking API, allows users to debit their accounts and move funds from one account to another.”; Codat, an API for SMBS, would help simplify and streamline the flow of data between small businesses and financial institutions; U.S. based banks are well behind the rest of the world in some key areas of innovation, API usage is one clear example of how much banks still need to innovate and they need to do so faster than ever before. Forbes.
Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.