The proliferation of APIs in the Indian banking ecosystem

The Indian banking ecosystem has experienced significant transformation over the last decade, primarily driven by the rise of APIs, which have enhanced the accessibility and efficiency of digital banking services. Online net banking has become the preferred mode for Indian customers due to its convenience and comprehensive service offerings, overcoming traditional limitations of card and cash transactions. The advent of smartphones, high-speed 4G connections, and the introduction of the Unified Payments Interface (UPI) in 2016 have further accelerated the shift towards digital payments, with UPI enabling seamless peer-to-peer transactions through APIs that ensure interoperability, security, and efficiency. As a result, Indian banks have been overhauling their backend systems to integrate UPI APIs and set up payment gateways to handle increased API traffic and transaction volumes. In parallel, API management solutions like Tyk are being adopted to streamline operations and enhance security, as banks continue to embrace digital transformation and open banking initiatives.