How API integration solves lenders’ technology challenges

How API integration solves lenders technology challenges Informed

What’s the issue?

The volume of document-centric processes rises and falls throughout the year as the workload modulates from season to season. Lenders have high volumes of documents to process towards the end of the month, quarter, year and during tax season. But, certain months have low volumes making it almost impossible to scale/calibrate human capital. Even if lenders try, they have to bear the human capital costs during the lean months. Automation, on the other hand, offers a “pay as you use” (SaaS) model. And one of the highest areas of leverage for a (SaaS) model is through API modernization of lending organizations.

What are APIs?

Re-architecting and modernizing legacy, monolithic apps creates the opportunity to ramp architecture in a new, agile way. And, with an investment that grows return (ROI). Application Programming Interfaces (APIs) allow lenders to attract new prospects and delight consumers with an improved Customer Experience (CX). APIs bridge systems and pave a digital path to a connected financial ecosystem.

Institutions that successfully drive digital transformation do not see these capabilities as additional channels and services. Rather, their goal is moving from a physical network of branches and ATMs, to a digital platform. Digital capabilities include account servicing and offering financial products that customers can access wherever and whenever they wish.

How API integrations can help

API integrations help lenders address several technology challenges. Some of these challenges and that API integration helps are:

  1. Data Integration: Lenders have large amounts of data from various sources, including customer information, credit reports, income statements, etc. API integration helps lenders seamlessly integrate data from these sources. This makes it easier to manage and analyze.
  2. Streamlining Processes: The lending process is complex, and involves multiple steps and systems. API integration streamlines the process, enabling lenders to automate tasks, reduce manual intervention, and minimize errors.
  3. Enhancing Customer Experience: With API integration, lenders provide a seamless and personalized customer experience, integrating customer relationship management (CRM) systems and other customer-facing technologies.
  4. Improving Security: API integration helps lenders secure their systems and data by implementing robust security protocols, such as encryption and multi-factor authentication.
  5. Enhancing Collaboration: Through API integration, lenders collaborate better with partners, such as banks and credit bureaus, allowing them to share data and automate processes.


API integration helps lenders address various technology challenges, streamline processes, improve security, enhance customer experience, and enhance collaboration. The API bridges different systems, allowing them to exchange data and perform specific tasks without having to directly access other systems.

Further Reading

If you’d like to learn more about the “technical side” of APIs, continue reading below. An API (Application Programming Interface) works as a mediator between two separate systems allowing them to communicate and exchange data. Here’s how an API works:

  1. Request: A client system sends a request to the API, asking it to perform a specific task or retrieve some data. The request includes information such as the endpoint (the specific location on the API server where the data is found), the method (GET, POST, PUT, DELETE, etc.), and any necessary parameters or data.
  2. Processing: The API receives the request, processes it, and retrieves the necessary data. If the request requires data to be updated or saved, the API updates the data accordingly.
  3. Response: The API sends a response to the client system, including the requested data or information about the outcome of the performed task. The response is typically formatted in a standard format, such as JSON or XML, for easy consumption by the client system.
  4. Integration: The client system can then use the data from the API response to perform its own operations or integrate the data into its own system.
author avatar
Jessica Gonzalez Director of Lending Strategies
With more than 15 years’ experience in the financial services industry, including tenures at Santander Consumer USA and Visa, Jessica Gonzalez is now the Director of Lending Strategies at Informed.IQ.

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