More specific benefits for financial institutions include:
Data transformation for consistency. From deposit slips and bank statements to transfer, loan applications and account opening forms, FIs handle many different requests using various formats. The API orchestration layer ensures payloads are correctly formatted transforming data so it’s consistent for all types for better organization and more efficiency.
Scalability for faster, safer deployment. With a containerized approach to APIs (bundling the application codes together so they run uniformly and consistently), developers can break out parts of the API and create new containers reusing and extending capabilities. This also makes it less time intensive for developers who make changes in a few simple steps, instead of many. The end result is faster and more secure technology deployments for FIs.
Runtime consistency for security and less errors. Consistency in the amount of time a program is running (runtime) is enabled with API orchestration by intervening at the microservices level for problem requests, then applying any changes before it reaches the backend. This gives FIs extra security ensuring protocols are standardized and data validation and error handling/logging is optimized so there’s increased operational efficiency and more protection against fraud.
Onboard new technologies more easily. One of the largest benefits of API orchestration is that it enables FIs to adopt new technologies more easily and quickly to their existing services so critical quick pivots like those that were needed during the pandemic aren’t as difficult. That way, they can increase their competitiveness and meet their customers’ expectations.
Operational visibility to make adjustments. With API orchestration it’s much easier to keep track of the health of all your microservices, to trace and report any errors. And that brings transparency that exposes business metrics which FIs can use to make changes when they need to.