What is Online Bank Integration ? API Banking

Netekstre
26-03-2024
4 min Read
What is Online Bank Integration ? API Banking

Open Banking is a system that enables financial institutions to share information and services through application programming interfaces (APIs). This concept, which started in the UK in the mid-1990s, was rapidly adopted in Europe and later in Turkey. Open Banking allows bank customers to view their accounts at different banks on a single platform, perform various transactions and generate reports.

What is API Banking?

API banking is an approach that enables financial institutions and other organizations to offer their services to software developers, third-party companies and customers. Through their APIs, banks share customer information, payment transactions, account activity and other financial data, allowing third parties to use this data.

How to Integrate Online Bank Integration?

Online bank integration is a process by which financial institutions harmonize their systems with those of other institutions and third-party companies, enabling the exchange of data and services. This integration is usually done through APIs (Application Programming Interfaces). Here are the steps of online bank integration:

1. Needs Analysis and Planning: First, the bank or financial institution should determine the purpose of the integration. At this stage, details such as what data will be shared, what services will be offered and with whom the integration will be carried out are analyzed and an integration plan is created.

2. API Selection and Integration Preparation: The Bank selects the appropriate APIs for integration and prepares the necessary technical infrastructure for integration. The documentation of the APIs is reviewed, test environments are created and authorizations required for integration are made.

3. Data Sharing and Integration: Through APIs, with the permission of bank customers, relevant data is shared with other financial institutions. At this stage, customer privacy and data security are prioritized and necessary security measures are taken.

4. Integration Tests and Approval: Once the integration is complete, the system needs to be tested and checked for correct operation. During the testing phase, factors such as data flow, service delivery and security are examined. If the tests are successful, the integration is approved.

5. Continuous Improvement and Maintenance: In order for the integration to function properly, regular maintenance and enhancements must be performed. Taking into account customer feedback, the integration is continuously improved and updated.

Conveniences Provided by Online Bank Integration

Online bank integration offers many advantages to both individual and corporate customers. These advantages include the following:

  • Account Management on a Single Platform: Customers can manage their accounts in different banks on a single platform. Thanks to online bank integration, customers do not need to manage a separate account for each bank. Instead, they can view all accounts through a single application or website.

  • Various Transactions: Through APIs, customers can transfer money between their accounts, make bill payments and perform other banking transactions with ease. For example, if a customer wants to transfer money between accounts at different banks, they can do so quickly and securely thanks to online bank integration.

  • Report Generation: Customers can view their account activity and financial status in detailed reports. Thanks to online bank integration, it becomes easier to monitor the expenditures in customers' accounts and make budget planning. In addition, customers can view reports at any time and analyze their financial status when necessary.

  • Mobile Access: Through mobile applications, customers can manage their accounts anytime and anywhere. Today, many banks support online bank integration through mobile applications. This allows customers to perform banking transactions, track account activity and pay bills via their smartphones or tablets. This gives customers more flexibility and ease of access.

Open Banking Experience with NetEkstre

NetEkstre is one of Turkey's leading Open Banking applications. NetEkstre offers its customers many advantages through Open Banking technologies. With NetEkstre, companies can process their banking data, view their accounts 24/7 from mobile devices, create reports tailored to their needs, and integrate them into ERP programs for effective management.

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