Even Financial, which provides an application programming interface between banks and third parties for consumers to be matched with financial products, raised the funds from investors including Goldman Sachs.
Sensing an opportunity in the small-business credit card market, Stripe is setting out to outflank big banks by offering application programming interfaces to enable its clients to issue their own physical and virtual credit cards.
The widely held belief that application programming interfaces are the key to banking’s future rests on the many ways early adopters are experimenting with the technology. But security and privacy concerns are still leading many in the industry to hold back.
The self-regulatory body says working with data aggregators increases risk of cyber fraud, unauthorized transactions and identity theft. But aggregators say other links in the information chain are more vulnerable.