Potential API Tsunami Threatens South African Banks
- The number of third-party integrations for banks is projected to increase from 15 in 2024 to 35 in 2030.
- UK banks have been sharing APIs since the implementation of PSD2 in 2018, while the US will require banks to share customer data starting in 2026.
- Nearly 75% of global banks still operate on outdated legacy systems, hindering their ability to scale API integrations.
The challenges posed by the rapid increase in API integrations highlight a critical need for banks to rethink their integration strategies. While the urgency to modernize is clear, the reliance on legacy systems and the complexity of managing numerous integrations could hinder innovation. A proactive approach, including a hybrid strategy and investment in modern architectures, is essential for banks to remain competitive in a rapidly evolving financial landscape.
