An open APIs business strategy can enable digital financial service providers to compete in a complex market and grow into new customer segments, while offering more innovative services to low-income households.
When APIs are first introduced into a provider’s business, they are often used as a technical solution to solve a particular challenge, such as the need for faster partner onboarding or to more easily reuse components across channels (USSD, mobile apps, web). But if these APIs are then opened to a wider network of stakeholders, they can become a strategic investment that helps a company increase the number and reduce the cost of integrations, diversify its product range, monetize previously underutilized assets, and strengthen its customer base.
CGAP’s work on API strategies focuses on:
- How to create an API team composed of business and technical leadership
- Taking a stepwise open API approach to ensure organizational learning of new business models
- How to prioritize which capabilities and business services to open as APIs