APIs Now Decide Who Gets Served and How Fast

Watch more: Need to Know With Green Dot’s Akhil Gupta

As financial services move deeper into software platforms, embedded commerce and enterprise workflows, application programming interfaces (APIs) are no longer simply the plumbing connecting a bank to outside developers. They now determine how quickly a bank can acquire partners, launch new programs, generate revenue and retain the companies building on its infrastructure.

“When banks think about APIs, the documentation, and what they’re putting out there in the world as a compliance checkbox, they’re treating that as a cost center,” Akhil Gupta, VP of product at Green Dot, told PYMNTS. “Whereas when you start looking at it as a growth lever, as the growth engine, then what you’re going after are platform capabilities. Banks and embedded finance providers who treat APIs, documentation and developer experience as an afterthought will find themselves disintermediated by the ones who actually embrace it as a growth lever.”

After all, embedded finance has widened the distance between the institution providing a regulated financial capability and the consumer ultimately using it. A bank may supply accounts, payments, identity verification or card issuance, while a FinTech, retailer, software platform or marketplace controls the customer experience.

In this new model, APIs function as a distribution channel.

“Word of mouth in the developer community carries a lot of weight,” Gupta said.

Developers Are Becoming the Real Enterprise Software Buyers

Today’s banking infrastructure is being judged by software standards. Partners do not merely compare pricing, balance sheet capacity or regulatory credentials. They evaluate how clearly a platform explains itself, how easily it can be tested and how predictably it performs once deployed. And while business-development teams may negotiate partnerships, it is engineers who frequently determine whether those partnerships work.

“While the BD team might be the one that chooses or gets an embedded finance partner in the door as a prospect, it’s the engineering team, the developer team, that makes the decision on vetting the capabilities and the services,” Gupta said.

The reason is because the quality of the API connection is what determines whether an external company can incorporate financial services into its product without forcing users into a fragmented or visibly bank-controlled experience. The more flexible and reliable the infrastructure, the more easily a partner can tailor those services to its own customers.

“Getting up and running quickly — a 30-day versus 60-day implementation time — is not just time that the implementation team spends,” Gupta said. “It’s also the time to revenue that is lost.”

API quality influences three separate stages of the partnership lifecycle, he said: acquisition, velocity and stickiness. During prospecting, accessible documentation helps a potential partner assess the platform and reach a decision. During implementation, reliable tools reduce friction and accelerate launch. After deployment, flexible infrastructure makes it easier to add features without renegotiating every capability or returning to the bank for extensive technical support.

A difficult implementation can therefore become a long-term commercial liability, even when the underlying financial product is competitive.

API Quality Now Shapes Revenue, Retention and Market Share

One of the most common mistakes banks make is treating documentation as a launch project rather than an operating discipline.

“The concept of developer experience, your API documentation, it’s not a one-time effort,” Gupta said. “Your investment in developer experience needs to be an ongoing initiative.”

He described three qualities that enterprise and FinTech partners need from banks: capability, reliability and flexibility.

Capability is the foundation — the accounts, payments, cards, compliance services or other functions a platform makes available. Reliability includes both technical uptime and the accuracy of the documentation describing how the system behaves. Flexibility determines whether those components can be assembled into a distinctive customer experience.

A bank can therefore have a technically robust platform and still offer a weak product if its documentation is inaccurate or its architecture forces every partner into the same rigid implementation.

The best API programs treat individual endpoints as parts of a larger system rather than isolated features. Partners need to understand not only what each component does, but how those components work together across onboarding, transactions, compliance and servicing. This feedback loop reflects a broader shift in banking infrastructure. APIs can no longer be managed as static technical artifacts. They require product ownership, customer research and continuous improvement.

For Green Dot, Gupta said, support for customers using foreign identification is integrated into its know your customer (KYC) and compliance systems. That allows partners to serve people who may lack a Social Security number without treating them as an exception requiring higher costs or weaker economics.

“When serving the underbanked or serving a new customer segment is an add-on, you typically tend to service them at either higher cost or lower margin,” he said.

Watch the full PYMNTS TV interview with Green Dot’s Akhil Gupta to hear more about:

Why bank APIs are becoming growth infrastructure, not compliance plumbing. Gupta says banks treating APIs, documentation and developer experience as core products can help partners embed financial services faster and avoid being disintermediated.

How developer experience now shapes acquisition, speed and retention. The discussion explores why engineering teams increasingly determine which providers win, how quickly programs launch and whether partners stay for the long term.

Why better APIs can expand financial access without increasing risk. Gupta argues that building KYC, compliance and risk controls into the platform from the start enables banks and FinTechs to serve underbanked and immigrant consumers more efficiently.