“In simple terms an API is a software component that enables one technology platform or website to share information with another, in a controlled way. For example, a bank may have an API that allows other authorised APIs to request and receive information from that bank. Another example may be a system that indexes weather conditions may have an API that allows other systems to access that information. This may be a charged for service. So a weather indexing system may charge 1p for example for every information request. Therefor one could provide a service of weather reports, updated every minute, or every second, which was chargeable for at the rate of 1p per update. This example shows how an API can be used to share information in a controlled, monetised, and secure way. A particularly significant new user case for APIs is in banking. A new regulation called PSD2 ( Payment Services Directive 2 ) is being introduced in 2018 and requires banks and financial services companies to ‘open up’ their API’s to third party companies. This change is also called ‘Open Banking’ and many people feel it will enable a wide range of new services to be enabled by third party Fintech companies.” Fintmind
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