Banking is just one of many industries that heavily use API technologies. The process of automating bank services is the financial sector’s new top priority after the emergence of Open Banking. It caused some anxiety for conservatives but it is undeniable to adopt this solution to survive today’s digital environment.
The banking industry is currently adopting APIs solutions widely. These solutions provide superior capabilities for resolving complexity, which improves ROI across the board. Banks can use APIs to enhance back-office operations, fraud detection, risk management, and 24/7 customer care engagements. In this context, more progress is anticipated as the adoption of these advancements has not yet reached its full potential.
An example of potential API use in banking is the routing validation process. This is an essential step to ensure that transactions are correctly made. When sending or receiving a wire transfer, paying a payment, or obtaining a new chequebook, routing numbers are necessary. Routing numbers and account numbers are unique identifiers to help guide payments and keep customers’ money safe.
What is a routing number?
A routing number is a nine-digit designation used to identify financial institutions in the US. It allows banks to transmit and receive money from other financial organizations. This identifier guarantees that money goes to the appropriate account and identifies the financial institution in charge of the payment.
Some banking operations that include the usage of routing numbers are the following:
- Automating the payment of bills online
- Wire transfers, both sending and receiving
- Requesting direct deposit of paycheck.
- Setting up direct deposit for government entitlements like Social Security.
- Transferring money from one person to another utilizing service like PayPal or Venmo.
- Transferring money from your bank account over the phone.
- For account-linked budgeting applications
There are numerous APIs that make it simple the validation routing number data before any transaction. We strongly suggest Routing Number Bank Lookup API from Zyla Labs. This API can be particularly helpful for banks or those dealing with mortgages. We will provide further details below.
Routing Number Bank Lookup API
Routing Number Bank Lookup API facilitate the transfer of funds between financial institutions via systems such as ACH, checks, etc. Its process is very straightforward. The system will return all the bank information after you enter your desired payment method and the routing number.
The integration of this API will allow you to check your provider’s routing number. Using this API, you can validate the routing transit number before making any transactions. Additionally, you can recognize the bank with which the routing number is associated. Therefore, you will be able to determine the location of the account. You will have access to the bank’s details. Furthermore, you can obtain additional information about the bank so you call them right away to double-check everything you need.
In terms of subscription plans, it offers some flexibility. From a no-cost trial to a custom plan if you need more than 100,000 requests per month. In fact, there are no restrictions outside the monthly cap on API requests.
Based on the aforementioned information, Zyla Labs’ Routing Number Bank Lookup API is a fantastic addition to your business. It will help you automate the process of validating routing numbers to produce reliable fund transactions. It is an effective way to save both money and resources.