A core system and all its ancillary products will equip your credit union with the majority of the functionally you require. However, as new products and services become available, the core alone may not be enough to keep your credit union competitive with the largest financial institutions that compete for your members. Application programming interfaces (API) can bridge that gap, and provide access to new features that credit unions are seeking. Some CUs are skeptical of APIs for concerns of security but most would argue that the benefits outweigh the added risk. APIs allow developers to introduce more add-ons with features that may not be available with the core platform alone. Here’s why your credit union should open up to new possibilities through APIs.
When it comes to security, many credit union executives are overly cautious, as they should be. Member data security is one of the pillars of credit union values, and it is more than reasonable to tread lightly when considering outside connections through APIs in conjunction with the core system. However, APIs can actually increase security and privacy when used in tandem with core systems. As long as they are implemented with secure data protocols, there is no reason to fear that the platform is not up to par with your credit union’s security standards.
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