APIs have emerged as a cornerstone for modernization and growth. According to Salt Security’s 2024 State of APIs report, the count of APIs has increased by 167% in the past year. APIs are now five times larger compared to the beginning of 2023 (the number of endpoints in an API can be counted to represent its size).
As financial institutions strive to remain competitive and innovative in 2025, CIOs who understand and leverage the latest API innovations can drive digital transformation, improve customer experiences, and ensure regulatory compliance. Here are five API trends set to reshape financial services in 2025.
1. Open Finance as a Strategic Driver
Open finance continues to redefine financial services. By enabling secure data sharing between financial institutions, fintechs, and third-party providers, open finance APIs will play a critical role in helping CIOs achieve strategic goals, such as expanding product offerings and fostering innovation.
We’ve seen it happen globally. Topazio Bank, a Brazilian B2B digital bank specializing in the areas of foreign currency exchange, credit, and banking-as-a-service needed to shift from a traditional bank into a completely digital entity. By implementing an API-centric strategy, adopting a platform positioning, and delivering Banking-as-a-Service (BaaS) solutions, the institution has seized the opportunities of Finance. The bank reduced its new product development cycle from one year to three months. Topazio’s platform now connects fintechs, startups, retailers, payment providers, and partners.
Sicredi, Brazil’s oldest and largest credit union service organization, understood quick open finance adoption could enhance member experiences and help the institution develop innovative products and services. By connecting to the ecosystem and analyzing the rich data they accessed, Sicredi launched over 300 new products, added $60 million in new branch account business, and $8 million in new funds from app users. BMG Bank in Brazil similarly experienced a 240% increase in its customer base within the first year of implementing open finance. These examples demonstrate tremendous growth potential when data is leveraged effectively.
Standardized frameworks like FDX will become more relevant, ensuring crucial interoperability and compliance for the financial services ecosystem. For CIOs, investing in APIs that facilitate seamless integration across diverse systems is vital. Additionally, open finance APIs enable financial institutions to build partnerships that drive revenue through embedded finance and personalized financial services.
Also Read: Why CIOs Must Prioritize Resilient Data Infrastructure
2. AI-Powered API Ecosystems
Artificial intelligence is becoming deeply embedded in API ecosystems, transforming how financial institutions operate. Every time someone uses a chatbot or businesses use fraud detection systems or customer analytics platforms, APIs serve as the backbone.
A key innovation in 2025 is the rise of AI Agents that leverage APIs to automate processes, make intelligent decisions, and interact autonomously with systems and users. For example, an AI Agent powered by APIs can analyze customer spending patterns to offer tailored financial advice or detect real-time transaction anomalies.
CIOs can create smarter, more responsive systems that enhance customer satisfaction and operational efficiency by focusing on building API ecosystems that enable AI’s seamless deployment and integration.
3. The Expansion of API Monetization
APIs are no longer just tools for connectivity; they are now becoming revenue generators. In 2025, API monetization strategies are expected to evolve significantly, with financial institutions offering premium API products to partners and third-party developers. These monetized APIs can include access to advanced analytics, credit scoring systems, and real-time payment processing.
This trend represents an opportunity for CIOs to turn IT investments into profit centers. Adopting robust API management platforms allows CIOs to track usage, implement tiered pricing models, and ensure secure access. Monetized APIs also enable financial institutions to create ecosystems that attract partners, fostering innovation and expanding market reach.
Banco Topazio shifted from a traditional bank into a completely digital entity by implementing an API-centric strategy, adopting a platform positioning, and delivering Banking-as-a-Service (BaaS) solutions to seize the opportunities of open banking. Results in the first year were incredible. The bank experienced a 4,000x increase in monthly loan issuance, shortened its new product development cycle from one year to three months, and grew new currency exchange contracts by 65,000. It also generated about $10 million USD in proprietary ventures and around $110 million USD through APIs. Topazio’s platform now connects fintechs, startups, retailers, payment providers, and partners.
4. APIs Driving Real-Time Data and Payments
In the fast-paced financial services sector, real-time capabilities are becoming essential. APIs are at the forefront of enabling real-time data exchange and payment processing, supporting use cases such as instant payments, fraud detection, and dynamic credit risk assessments.
CIOs must prioritize APIs that facilitate real-time operations, ensuring their institutions can meet customer expectations for speed and responsiveness. For example, real-time payment APIs enable seamless peer-to-peer transfers and instant merchant settlements. Additionally, APIs that support real-time data analysis can help institutions proactively manage risks and identify new growth opportunities.
Latin American electronic payments provider, Cielo’s, LIO is a smart POS that connects with numerous third-party partners, testing and troubleshooting mechanisms to incorporate new business features and create a better consumer experience. Cielo opted for API First when taking advantage of shared technology. API First allowed Cielo to find opportunities in markets they never deemed possible. Now, Cielo is one of the largest payment processors in the world.
Also Read: Beyond the Mailroom: How CIOs Can Transform Enterprise Mail into a Secure Digital Hub
5. Secure and Sustainable API Strategies
As the reliance on APIs grows, so do concerns around security and sustainability. APIs are integral to daily activities like banking or online shopping. The number of APIs continues to skyrocket. As their usage grows, so do attacks by malicious actors. Prevention and rapid detection of attacks is essential to keeping businesses and consumers safe. In 2025, CIOs will need to adopt API strategies prioritizing robust security measures and environmental responsibility.
Cyber threats increasingly target APIs, making advanced security protocols like mutual TLS, OAuth 2.1, and API-specific threat detection essential. At the same time, sustainability is becoming a key focus, with institutions adopting “green APIs” that minimize energy consumption and support low-bandwidth environments. Finding ways to securely use APIS to embed sustainability into business can encourage employees to engage in sustainable activities, measure and reward sustainable practices, and incorporate sustainability into the business culture.
For CIOs, aligning API strategies with security and sustainability goals can enhance trust with customers and stakeholders. This strategic alignment includes building APIs that comply with environmental standards and support underserved communities through inclusive design practices.
Final Thoughts
This is an exciting and challenging time for innovation and growth. As APIs drive transformative change across the financial services industry, CIOs and their teams have new ways to innovate, scale, and compete. From open finance to AI-powered ecosystems and monetization opportunities, the trends shaping 2025 are driven by APIs. CIOs who understand the opportunities to use APIs wisely can position their organizations for success in an increasingly digital and interconnected world.
