CGAP’s open APIs work covers the business and technical aspects that DFS providers will need to consider when embarking on an open API program:
Across Africa, East Asia, South Asia, and Latin America, the digital financial services (DFS) industry is evolving steadily. In many countries, the number of innovative start-ups and app developers eager to launch services for low-income market segments is growing. Yet without access to established payments providers’ digital payments infrastructure and customer data (i.e., the “digital rails”), it is difficult for these innovators to turn their ideas into services for the people who need them.
For DFS providers, this type of collaboration creates stronger loyalty from existing customers who are able to access more services and products through their platforms. It also allows DFS providers to reach niche markets that may have been difficult to access previously and introduces new business models whereby providers can gain a revenue share from third-party providers building on their digital rails. For citizens, it increases access to a diverse range of financial services and support that will help them build wealth and reach their quality of life goals.
Open API Resources
- [Primer] From Integrations to Innovations: Implementing an Evolving API Strategy
- [Publication] Digital Rails: How Providers Can Innovation in DFS Ecosystems Through Open APIs
- [Blog Series] Open APIs: Unlocking Innovation in Digital Finance
- [Blog Series] Mobile Money and APIs
CGAP works with industry to demonstrate how third parties can leverage the capabilities and assets of digital payment providers to deliver innovative financial solutions for low-income individuals. Helping providers transition toward open platforms by adopting open APIs will increase access to the digital rails, reduce the cost of integration for third parties, and accelerate the pace for innovation. Ultimately, this shift toward openness can benefit payments providers, third parties and customers alike.
CGAP is working closely with a handful of DFS providers who are demonstrating new ways to open APIs to help create solutions for financial inclusion. The learnings from these projects will be shared publicly to speed up replication and minimize missteps. A series of resources will also be released to help API product managers, technology leads, risk and compliance directors, DFS executives, and CEOs understand how to build their digital rails infrastructure and speed up innovation.
Contact: Michel Hanouch