Banking
Leading banks leverage 42Crunch to scale API Security & Enforce Compliance
Banking
Leading banks leverage 42Crunch to scale API Security & Enforce Compliance
APIs Enabling Open Banking and Third-Party Integrations
APIs have enabled the digital transformation witnessed in the banking and financial services sectors over the past decade. Innovation has been driven by connecting developers and financial institutions using APIs to integrate banks with third-party cutting-edge mobile banking, insurance and wealth management applications.
In the banking sector, where data security, compliance, and customer trust are paramount, APIs represent both an opportunity and a risk. Poorly secured APIs can expose the bank to cyber-attacks, fraud, regulatory penalties, and reputation damage. Given the complex ecosystem of digital banking, mobile apps, third-party integrations, and open banking, securing APIs is essential not only to protect sensitive financial data but also to ensure the integrity and availability of banking services. Robust API security is, therefore, foundational to maintaining both operational excellence and customer trust in the digital age.
Proactive Regulatory Environment Regulations
Much of these advances haveย been facilitated by a proactive regulatory environment that seeks to balance data protection with data sharing. For example the Payments Services Directive (PSD2) is compelling banks to create best practices in APIs, vendor integration and data management. But stakeholder companies also need to comply with strict data protection regulations such as GDPR.
The banking sector is one of the most heavily regulated industries in the world, with laws and regulations like GDPR (General Data Protection Regulation), PSD2 (Payment Services Directive 2), HIPAA (Health Insurance Portability and Accountability Act), and PCI-DSS (Payment Card Industry Data Security Standard) governing the protection of consumer data and financial transactions. API security plays a central role in ensuring compliance with these regulations. Banks must prove that their APIs are secure to avoid hefty fines and reputational damage from non-compliance.
Securing Collaboration, Enforcing Compliance
Without adequate API Security controls in place, all of these financial service providers risk running into trouble, not only with the legislators but also the hackers. At 42Crunch, we work with leading banks to enable development and security teams to collaborate to enforce continuous API security at every stage of the API lifecycle, thus ensuring the protection of customer data and compliance with industry legislation. Simply identifying a zombie or shadow API is not sufficient when valuable and sensitive personal financial information is at risk, not to mention the financial penalties that legislators can impose.
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