SFTP integrations, commonly used for transferring data between platforms like HRIS and applications, are fraught with challenges such as setup difficulties, file errors, and connection issues. These errors can stem from a variety of sources including incorrect file formats, mismatched field names, and unsupported protocols, often leading to frustration and compliance challenges. The document suggests that API-powered integrations, like Finch's Unified Employment API, offer a more reliable and automated alternative to SFTP, allowing seamless data access across diverse HRIS and payroll systems without the need for individual connections. Finch's API ensures data is standardized and regularly updated, enhancing the efficiency and reliability of data transfers while mitigating the complexities associated with SFTP.