Fintech Industry Advancements: Exploration of Continuous Banking, Built-In Financial Services, and AI Development Platforms | FIS, HSBC Innovative Banking, BNY Mellon | The Fintech Program Episode 159
In the rapidly evolving world of finance, APIs (Application Programming Interfaces) are playing a pivotal role in reshaping the industry. Banks like HSBC Innovation Banking (formerly SVB UK) are leveraging APIs to provide quicker connections to accounting packages such as Xero and QuickBooks, and are extending into richer use cases.
Michelle Henrich, a prominent figure in the fintech industry, links APIs to the rise of open banking and the surge of fintech. She notes that younger consumers are increasingly meeting their financial needs through third-party apps. APIs, platform operating models, and AI in the toolchain are helping banks and fintechs deliver better products, faster, at global scale.
Ad Van Der Poel, associated with HSBC Innovation Banking, along with Michelle Henrich from FIS, discusses how APIs are driving innovation in financial services. While specific practical results achieved by Van Der Poel using HSBC's APIs are not detailed, their conversation underscores the transformative impact of APIs on the industry.
APIs are being used to assemble best-in-class solutions from multiple providers, pushing banks to provide cohesive flows that span customer search and creation, KYC (Know Your Customer), entitlements, and account setup. They have moved from being an "integration method" to a strategic lever, enabling an always-on, embedded, multi-provider financial ecosystem.
Banks are also recognising the need to bridge enabling rails and adjacent services (such as FX, blockchain, stablecoins, and tokenized deposits) with legacy infrastructure. BNY Mellon, for instance, builds for speed and quality by centralising repeatable capabilities such as KYC, billing, onboarding, risk, and exposing them via reusable services/APIs under a platform operating model.
APIs lower barriers for new entrants, drive more choice, and sharpen pricing in the financial industry. However, they also demand strong orchestration and developer experience. Banks should hide orchestration complexity behind those APIs, delivering a simplified, guided journey for clients.
Virtual accounts, powered by APIs, are enabling fund managers to gain near real-time insight into payment flows across portfolio companies. Meanwhile, fintechs are standing up wallet-like propositions for their customers.
Technology is only half the job. Banks also need to coach clients on adoption and automation when human staffing isn't available around the clock. Seven-day accounting, continuous interest calculations, and intraday liquidity management are necessary for the operational follow-through of a 24/7 operating model, which includes instant payments at any hour, direct clearing or correspondent partnerships, real-time visibility into flows, balances, and liquidity.
Carl Slabicki discusses the shift towards a 24/7 operating model in banking, and argues for the integration of APIs into clients' core businesses. This would enable payments and broader financial products like insurance and fund management to show up exactly where customers already are. Slabicki sees AI as an accelerant across the software lifecycle, improving both pace and robustness.
Henrich frames APIs not just as integration plumbing, but as a catalyst for innovation, and a path from open banking today toward broader open finance tomorrow. FIS's developer experience and API marketplace, CodeConnect, democratises access to financial capabilities by providing documentation, sandbox testing, and accelerated go-live without extensive hand-holding.
In conclusion, APIs are revolutionising the financial services industry, enabling secure communication and automation of complex work. They are driving innovation, breaking down barriers for new entrants, and paving the way for open finance.
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