Why Should You Get Rid of Multiple APIs

What is API anyway?

First things first, what's the buzz about APIs anyway? Imagine APIs as the connectors of the digital universe. They're like the universal language that different software systems speak to communicate with each other seamlessly. In the fintech world, APIs serve as the backbone, facilitating the exchange of data and functionalities between various financial applications, platforms, and services. Why do businesses use APIs? Some technologies are difficult to build from scratch. It takes time and resources to develop a tech while API allows businesses to harness the power of whatever they need with a few lines of code and minimum dev resources involved.

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Single API - the holy grail of fintech

Businesses use fintech APIs to enhance the capabilities of their own tech, whether it’s a website, platform, or app. If you’re developing an e-commerce app, for instance, you might need one API for user verification, one for payments, one for shipping, and the list goes on. Now, imagine that your business grows and expands internationally. To keep providing great services, you’ll need to integrate more APIs. As the API stack grows, your team faces more challenges. Some APIs might be harder to integrate due to legacy tech, others may raise security or compliance issues.

But it doesn’t have to be this way. Picture this: instead of juggling multiple APIs like a circus performer, you have one API to rule them all. Sounds great, right? That’s what tech-savvy fintech companies are embracing. With a single API, you streamline the integration process, reduce complexity, and minimize maintenance headaches. It's like decluttering your digital workspace and finding that sweet spot of efficiency.

But doesn’t a single API mean a single service? Single API doesn’t have to come with low-quality data or limitations. The market is full of solutions that orchestrate dozens of services while not compromising on quality. In fact, fintechs are built around the best-of-breed approach. Dotfile is a great example of the best-of-class services available via one API.

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Less is more - The benefits of a single API

Managing multiple APIs means dealing with different authentication methods, data formats, and endpoint quirks. With a single API, you bring order to the chaos, simplifying your tech stack, streamlining your development process, and reducing complexity. Here's why a single API in fintech is worth its weight in digital gold:

• Simplicity is King: With a single API, complexity takes a backseat. Say goodbye to the endless documentation and authentication protocols, and the headache of juggling multiple integrations. One API means one set of documentation, one authentication method, and one unified endpoint to access a plethora of financial services.
• Faster Time to Market: Time is of the essence. A single API accelerates your time to market by eliminating the need to wrangle with disparate systems. With streamlined integration comes quicker development cycles, allowing you to unleash your innovative solutions in the wild before your competitors even blink.
• Enhanced Reliability: Let's face it - the more moving parts you have, the greater the risk of something going awry. By consolidating your integrations into a single API, you're not only reducing the likelihood of errors but also enhancing the reliability of your application. With fewer dependencies to worry about, you can sleep soundly knowing that your fintech is built on a solid foundation.

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But what about no-code?

It’s hard not to mention no-code when discussing API. While no-code tools certainly have their time and place, they pale in comparison to the flexibility and control afforded by API integrations. Sure, no-code platforms offer a quick fix for simple tasks. But when it comes to unlocking the full potential of fintech innovation, APIs are the undisputed champions allowing you to tailor your fintech solutions to your exact specifications.

Whether you're building a sophisticated trading platform or a user-friendly budgeting app, APIs empower you to unlock the full potential of your creativity without being boxed in by pre-built templates. You have the freedom to sculpt your product with precision, tapping into the raw power of data and functionality offered by financial institutions.

No-code certainly is a simple solution to complex problems. You can easily whip up a basic app or workflow without writing a single line of code. But what happens when you need scalability? That's where API integrations swoop in to save the day.

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Why is business data orchestration a must for fintechs?

The fragmentation of business data is a pain, especially for growing businesses. Why is that? Data sources have their own ways of labeling the information, meaning the data format differs depending on the provider. The more APIs you have, the more work it requires to structure the information. Inconsistency may lead to a drop in match rates, data accuracy, and reliability. It adds extra manual work for your analysts and extends verification time. But there are ways to reduce the hassle! Single API solutions ensure the data is unified and require minimum developer work during integration.

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How Dotfile can help you build your fintech poduct with a single API?

Dotfile has a robust API that allows integration with the best-of-class business verification services and features. With a single API integration, you can automate data collection and identity verification, risk profile evaluation, AML screening, and more. With our modern API, webhooks, and documentation, your team will be able to integrate Dotfile into the rest of your tech stack in a blink.

Whether you’re a trading platform, marketplace, exchange platform, or bank, Dotfile offers the flexibility and scalability you need. Verify your customers wherever they are, reduce the risk of fraud to protect your users, and foster trust. Leverage AI to speed up customer onboarding and increase efficiency. Book a demo to learn more.

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To code or to no-code

Modern solutions offer a single API integration without compromising on data quality or service availability. From simplifying development and accelerating time to market to enhancing reliability and fostering innovation, a single API stands as a beacon of light in a sea of technological complexity. API integrations offer unparalleled flexibility and control, allowing you to tailor your fintech solutions to your exact needs. When it comes to scalability, API is more powerful than no-code solutions. Whether you choose one or the other depends on your unique needs, the technology at hand, the challenge you’re trying to address, and your go-to-market strategy.