Bank of America is enhancing its commercial financial services with a focus on application programming interfaces (APIs).
The company announced news on Wednesday (Jan. 24) that it launched an API gateway that can facilitate connectivity into existing treasury management, enterprise resource planning (ERP) and other third-party services for its corporate clients.
“We want to embrace the innovation opportunities presented by APIs and work with industry providers to give our clients an expanded, secure experience that helps them grow and prosper,” said Bank of America Head of Global Transaction Services (GTS) Faiz Ahmad in a statement. “As the pace of technological changes accelerates, expectations accelerate in tandem. Clearing systems, regulatory mandates and banking channels are evolving to support real-time interactions with unbundled banking services. Our clients will expect to integrate these directly into their business processes and applications. The experience will be easy, more secure and seamless to end users.”
In its announcement, the financial institution (FI) said the API gateway will support direct client connections, collaboration with ERP and treasury management system (TMS) vendors and third-party FinTechs. Bank of America said it is in conversation with clients from all three categories to deploy its API framework.
The launch is also part of the bank’s adherence to the European Union’s PSD2 directive, which promotes open banking and data sharing between traditional banks and FinTechs.
“Our API gateway opens new opportunities to engage with clients, industry participants and new players alike,” stated the bank’s Global Head of Financing and Channels for GTS Hubert J.P. Jolly in another statement. “By aggressively pursuing digital solutions that leverage client-driven content, we can play a central role in streamlining our clients’ financial lives.”
Earlier this week, Bank of America announced the rollout of Virtual Payables, a solution to enhance accounts payable (AP) management by promoting the use of virtual cards for supplier payments. The solution operates on API technology that allows companies to initiate supplier payments via batch file delivery straight from their existing AP or ERP platforms.