Is API the Most Important 3-Letter Word in Global Banking Innovation?

Today’s businesses exist and operate across a connected global landscape.

Advances like instant payments and real-time data integration are becoming the norm, which puts pressure on multinational companies and commercial banks to streamline operations and bring to market the appropriate innovations that can meet, and ideally exceed, the demands of their next-generation end-users.

Against that backdrop, Mohit Narula, head of CitiConnect at Citi, told PYMNTS that one of the challenges for multinational corporations and financial institutions is the integration of disparate systems, including enterprise resource planning (ERP) platforms and treasury management systems (TMS).

As companies manage global operations, they require seamless connectivity between their financial systems and banking networks, he said.

“Corporate clients and financial institution clients have different needs,” Narula said. “Some of them run batch processes for vendor payments, while others need real-time statuses for their payments.”

To address these challenges, global banking partners like Citi have developed solutions designed to simplify treasury, trade and payment processes while providing real-time visibility into transactions.

As the financial ecosystem shifts toward instant payments, Narula said omnichannel connectivity has become a requirement for commercial banks and multinational corporations. With over 70 countries now offering instant payment systems, businesses expect the same level of speed and efficiency they experience in their consumer transactions.

“Behavioral changes are driving businesses to replicate the instant payment experience in their corporate life,” Narula said.

As consumers become accustomed to immediate payments, they expect their banks to provide similar services for corporate transactions, he added.

CitiConnect’s ability to support batch processing through file-based connectivity and real-time responses via APIs allows it to cater to the diverse requirements of its clients — particularly as it relates to right-now insights and real-time visibility into transactions, Narula said.

CitiConnect has self-service tools that enable clients to manage their cash more efficiently.

“Earlier, if a client needed to check their balance, they would have to log in to a system and navigate multiple screens,” Narula said as an example. “Now, with a balance inquiry API, Citi clients can access their balances in real time with the click of a button on their own ERP or TMS screen.”

This shift toward automation and self-service is part of a broader trend of providing clients with the tools they need to take control of their financial workflows. Citi’s API developer portal allows clients to co-create solutions. Narula likened the portal to a “car showroom for APIs,” where clients can test-drive over 75 APIs in a sandbox environment before integrating them into their production systems.

This hands-on experience lets businesses tailor API options to their needs, fostering innovation and collaboration between Citi and its clients. Companies can experiment with different API configurations, gaining real-time feedback and insights before committing to full-scale implementation, he said.

Automation is not just about convenience — it has tangible benefits for businesses, particularly in managing liquidity and reducing operational costs. CitiConnect’s suite of payment APIs, combined with instant payment systems, allows clients to move money faster and with greater control over their liquidity, Narula said.

“Money that used to take two or three days to move can now be moved in seconds,” he said.

This speed allows businesses to optimize their internal processes, making them more efficient and reducing costs. By automating previously manual processes, companies can allocate resources more effectively and focus on strategic decision-making.

“When the entire ecosystem is shifting into seconds, clients expect a much faster response time from their banks,” Narula said.

To meet this demand, CitiConnect has built an ecosystem of support services around its APIs. This ensures that if issues arise, clients receive faster updates, allowing them to maintain the high-speed operations that their businesses require, he said.

Looking ahead, Narula revealed several upcoming enhancements to CitiConnect, including a revamped developer portal set to launch by late 2024. The portal will offer an improved user experience, along with a range of new APIs for instant payments, liquidity management, commercial cards and trade services.

Additionally, Citi is expanding its connectivity options with popular ERP and TMS platforms, making it easier for clients to integrate their systems with Citi’s banking network. For clients using SAP’s S/4HANAcloud-based ERP, Citi is rolling out specialized support services to assist with migration and integration to help ensure a smooth transition.

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