Name: RiskSeal, Inc.
Price range: $$

Table of contents

Have you ever wondered how your phone updates the weather forecast every day? Or how do websites let you sign up using your Google account? And what makes secure online payments possible on e-commerce platforms?

All of these everyday conveniences—and much more—are made possible by APIs, short for Application Programming Interfaces.

Let’s dive into what an API is and how it works in software.

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What is an API in simple terms?

An Application Programming Interface, or API, is a section of software code that makes it possible for several applications to interact with each other.

In other words, it is a kind of mediator between two software products, with the help of which information is exchanged, and new functionality is integrated into the digital solution.

APIs significantly simplify the work of developers and allow them to create user-friendly, functional applications. For this reason, software interfaces are noticeably popular all over the world.

Among other things, they are often used by modern fintech companies to obtain alternative data for credit scoring.

According to DevOps Digest, 98% of CEOs of large enterprises believe that the use of APIs is mandatory for their successful integration into the digital ecosystem.

API importance in digital transformation

They believe APIs have the potential to improve the customer experience, accelerate innovation, and enhance developer collaboration.

As a result of this global proliferation, the economic impact of Application Programming Interfaces is expected to grow by $14.2 trillion by 2027.

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How do website APIs work?

In API architecture, two concepts are considered:

Client – the software that responds to a request
Server – the software that responds

So, what is an API request? It is the process of one application requesting data or a service from another.

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Let's look at the principle of the software interface using the example of a weather forecast application. In this case, the mobile solution on your phone is the client and the weather service database is the server.

The user logs into the application, which results in an API call or a request for information. The server accepts the request and sends the required information to the user (client).

With the help of APIs, it is feasible to:

Aggregate information from different sites. For example, provide the user with a list of available flights, hotels, or restaurants in a certain area, make a playlist, etc.

Replicate the functionality of other software. Developers can implement the required function on their web resource without creating it from scratch.

The need for interaction between different applications arises constantly, so there is a huge number of APIs, which is growing at a great speed.

According to analysts’ calculations, the number of active APIs now exceeds 200 million. This figure will increase to 1.7 billion by 2030.

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Types of APIs by level of access

Depending on who has access to APIs, there are four types of program interfaces.

API type	Description	Examples of use
Open, external, or public APIs	These are characterized by the open exchange of information that can immediately be manipulated by third parties.	Applications for traffic tracking, weather forecasting, and traffic monitoring.
Partner APIs	Only authorized users who have a business relationship with the company providing the API have access.	Ecommerce platforms such as Amazon or eBay use partner APIs to connect partners.
Internal, or private APIs	These are software interfaces that can only be accessed internally.	Internal enterprise applications can use these APIs to interact with new systems.
Composite APIs	These programming interfaces allow you to combine multiple requests and get one common response from different servers. This is a way to speed up the system by reducing the load on the server.	Modern risk management solutions use composite APIs to collect alternative data for credit scoring from multiple sources in just one API call.

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Varieties of API architectures

API architecture refers to a set of rules about what information an interface can share and how it should do it.

There are three fundamental types of API architecture.

A REST API (or RESTful API) is widely used for fast and secure data transfer. It follows the REST architectural style, which includes features like stateless communication, clear separation between client and server, and using HTTP as the communication protocol.

SOAP APIs are more secure but harder to implement due to strict rules for message formatting and precise content definitions.

RPC APIs work by executing scripts on the server. Due to their limited functionality and security, they are mostly used within internal networks.

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Aspects of APIs’ connection to fraud

Analysts say that recently, there has been an increase in API attacks, i.e., attempts to use software interfaces for fraudulent purposes.

According to a recent survey, 95% of respondents have suffered incidents related to attacks on software interfaces.

Security issues identified in production APIs

Fighting fraud with RiskSeal’s API-based platform

At the same time, APIs not only act as a target for criminals but also help organizations fight back against attackers.

Companies are using them to create powerful and flexible anti-fraud software.

RiskSeal's Endpoint API is designed to seamlessly integrate with financial institutions and other businesses seeking advanced digital credit scoring solutions.

Here's how it works.

API access & integration

RiskSeal’s Endpoint API allows financial institutions to request credit scores for individual applicants or customer profiles in real time.

The platform supports various integration methods, allowing businesses to embed the API into their existing systems.

Scoring algorithms

Once data is received through the API, the RiskSeal platform processes it using its proprietary scoring models.

These models leverage alternative data analytics, machine learning algorithms, and behavioral insights to generate a predictive digital credit score.

The platform adjusts dynamically to new data points, continually improving its scoring accuracy.

Speed & scalability

RiskSeal's Endpoint API is optimized for high-volume transactions, enabling businesses to handle large numbers of credit score requests simultaneously.

This scalability is essential for banks and lending platforms dealing with heavy user traffic or batch processing needs.

Response times are kept low – 5 seconds on average.

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