* [Topics](/en/topics "Topics") * [Integration](/en/topics/integration "Integration") * Do banking APIs benefit from cloud technology? Do banking APIs benefit from cloud technology? ============================================== Published September 8, 2021•*4*-minute read Copy URL Jump to section --------------- Banking APIs and cloudAPI securityAPI designAPI developmentAPI operations Banking APIs and cloud ---------------------- Banking [APIs](/en/topics/api) are essential because they enable banking products to be brought together and distributed with consumers, businesses, and partners. They are the "connective tissue" for digital banks, and as such are intrinsically linked to their ability to support customer needs and respond to change more quickly. Cloud technology has improved how banks architect, develop, and operate APIs, so they can break free from the limitations of the past. This is because previous generations of API technology were built around traditional architectures that were bound by the limitations of the underlying infrastructure. This approach meant that hosting arrangements were statically defined upfront, which led to the centralization of integration concerns. Eventually, this hampered the bank’s ability to quickly create and adjust APIs as needed. As new architectures like [microservices](/en/topics/microservices) continue to evolve, so does the technology required to support them, putting even greater demand on API development and management. However, with the right cloud-native processes and tools, APIs and cloud technology can work together to reduce technology complexity and create new value for customers and partners. They can help banks move beyond the limitations of traditional approaches to APIs and gain new levels of nimbleness and efficiency. More specifically, with [cloud-native](/en/topics/cloud-native-apps) technology, banks can streamline the process of creating and managing APIs without the burden of managing the underlying infrastructure, while applying non-intrusive policy enforcement to the runtimes that support them. ### Service mesh or API management? Consistent, effective management of APIs is critical within the banking industry. This e-book explains both API management and service mesh approaches, when to choose one over the other, and how to set up a comprehensive service management architecture using both solutions together to keep banking data safe and services reliable. How does the cloud protect my bank from API attacks? ---------------------------------------------------- The data flowing inside and outside of the bank has long been a target for criminals who wish to use it as part of their nefarious activities. APIs have become a popular attack vector for criminals to gain access and manipulate bank information.  The growing sophistication of attacks means that banks need much more than API access control as they think about API protection and [API security](/en/topics/security/api-security). Traditional security approaches were based on a "castle-and-moat" model which has proven to be unsuitable against today’s criminals.  Cloud platforms can help ease adoption of a zero trust model with a built in [service mesh](/en/topics/microservices/what-is-a-service-mesh) to provide API protection that assumes any communication from any source is untrusted by default. By also including a [Kubernetes](/en/topics/containers/what-is-kubernetes)-native approach to [API management](/en/topics/api/what-is-api-management), the bank can take advantage of the underlying capabilities of the cloud platform to provide the strongest possible API security posture for its data in motion. Zero trust workload identity manager ------------------------------------ [Keep reading](/en/technologies/cloud-computing/openshift/zero-trust-workload-identity-manager "Keep reading") How does API design benefit from cloud technology? -------------------------------------------------- APIs are fundamentally about exchanging data, and the goal is to make that exchange simple, secure, and reliable. Having a sound API design can ensure that the bank does this as efficiently as possible. Cloud platforms can enforce API best practices and API standards through rules applied within the deployment pipeline and enforced through a standard policy enforcement point. This enforcement helps to keep API definitions simple and consistent. Cloud technology can also make your architecture more nimble by enforcing good API design principles when it comes to API granularity. Banks can use [containers](/en/topics/containers) to adopt a [microservice-based architecture](/en/topics/microservices)  so that they can break APIs into right-sized pieces that can evolve independently and provide the nimbleness that is expected from a cloud-native architecture while maintaining the security and reliability that is required for communication inside and outside of the bank. How does cloud technology improve API development? -------------------------------------------------- The ability to rapidly evolve APIs can provide an unprecedented advantage to banks. Many banks have adopted agile practices and principles to speed up development, but traditional distributed technology has limited the benefits. Cloud platforms can empower agile teams to evolve APIs without the need to request infrastructure or other supporting resources. This means that teams can spend more time focusing on creating value with API programming instead of raising tickets for resources. Cloud platforms also aid in API discovery and use among distributed developers who need their applications to integrate with existing services. With a Kubernetes-native approach developers can streamline software delivery and get their new features to users faster.  Developers have additional services within the cloud platform for API design and testing along with other technology to support full stack development that works in conjunction with [deployment pipelines](/en/topics/devops/what-cicd-pipeline). This empowers teams to quickly adjust when they need to, while adhering to software delivery best practices. How does cloud technology improve API operations? ------------------------------------------------- API consumers have service-level expectations of the APIs provided by the bank. Poor performing APIs and outages can negatively impact the bank’s reputation but also can be costly to return to service. APIs have dependencies on other systems and components in order to function properly and meet service-level obligations. The service mesh within the cloud platform goes well beyond traditional approaches to monitoring APIs. They can automatically detect slow downs and shut off communication until the impacted component can recover. Cloud platforms can extend the value of service meshes by automatically identifying when instances are unhealthy and can take corrective action to bring them into a healthy state. These cloud based capabilities not only improve availability, but also reduce the cost of running operations. Cloud platforms also have built-in pipelines to support [continuous delivery](/en/topics/devops/what-is-ci-cd). This can take the pain out of cumbersome deployment practices when new versions of the API need to be released. It also enables banks to employ canary deployments so that traffic can gradually be migrated over to the new version of the API and ultimately reduce deployment risk. The official Red Hat blog ------------------------- Get the latest information about our ecosystem of customers, partners, and communities. [Keep reading](/en/blog "The official Red Hat blog") Recommended for you Cloud-native API Administration with Red Hat 3scale API Management ------------------------------------------------------------------ Build and Administer APIs with Red Hat 3scale API Management (DO240) teaches you how to manage, monetize, and secure APIs with Red Hat 3scale API Management. [View course](https://www.redhat.com/en/services/training/do240-cloud-native-api-admin-red-hat-3scale-api-management?percmp=RHCTG0250000455236) Keep reading ------------ ### What is a service mesh? Read this article to find out more about what a service mesh is, how it works, and the benefits and challenges of implementing a service mesh. [Read the article](/en/topics/microservices/what-is-a-service-mesh "article | what is a service mesh?") ### What is application integration? Application integration connects different systems and applications by enabling them to work together through exchanging data and using services. [Read the article](/en/topics/cloud-native-apps/application-integration "article | What is application integration") ### What is middleware? Middleware is software that provides common services and capabilities to applications outside of what’s offered by the operating system. [Read the article](/en/topics/middleware/what-is-middleware "article | what is middleware") Integration resources --------------------- ### Related content * Analyst material [Demystifying Cloud Marketplaces](/en/engage/omdia-demystifying-cloud-marketplaces-analyst-material) * Blog post [Save, edit, and share blueprints in Lightspeed image builder](/en/blog/blueprints-with-Lightspeed-image-builder) * Analyst material [A unified hybrid cloud helps CAE deliver new flight experiences faster](/en/resources/cio-case-study-analyst-material) * Blog post [Looking ahead to 2026: Red Hat’s view across the hybrid cloud](/en/blog/looking-ahead-2026-red-hats-view-across-hybrid-cloud) ### Related articles * [What is cloud migration? And how can automation help?](/en/topics/automation/what-is-cloud-migration) * [Why run Linux on AWS?](/en/topics/linux/linux-on-aws) * [What is hybrid cloud?](/en/topics/cloud-computing/what-is-hybrid-cloud) * [What is serverless?](/en/topics/cloud-native-apps/what-is-serverless) * [What is a service mesh?](/en/topics/microservices/what-is-a-service-mesh) * [Why choose Red Hat Enterprise Linux on Azure?](/en/technologies/linux-platforms/enterprise-linux/why-choose-red-hat-enterprise-linux-on-azure) * [What's the difference between cloud and virtualization?](/en/topics/cloud-computing/cloud-vs-virtualization) * [Why choose Red Hat Enterprise Linux on AWS?](/en/technologies/linux-platforms/enterprise-linux/why-choose-red-hat-enterprise-linux-on-aws) * [What is CloudOps?](/en/topics/automation/what-is-cloudops) * [Linux on Azure](/en/topics/linux/linux-on-azure) * [Linux for cloud computing](/en/topics/linux/linux-for-cloud-computing) * [Why run Linux on Google Cloud?](/en/topics/linux/linux-on-google-cloud) * [What is application integration?](/en/topics/cloud-native-apps/application-integration) * [Why choose Red Hat Enterprise Linux on Google Cloud?](/en/technologies/linux-platforms/enterprise-linux/why-choose-red-hat-enterprise-linux-google-cloud) * [Why are financial services slow to adopt the cloud?](/en/topics/financial-services/why-financial-services-are-slow-to-adopt-cloud) * [What is Cloud Foundry?](/en/topics/application-modernization/what-is-cloud-foundry) * [What is the role of the cloud in embedded finance?](/en/topics/financial-services/the-role-of-cloud-in-embedded-finance) * [OpenShift vs. OpenStack: What are the differences?](/en/technologies/cloud-computing/openshift/openshift-vs-openstack) * [Cloud services for financial services](/en/topics/financial-services/cloud-services-for-financial-services) * [Kubernetes vs OpenStack](/en/topics/openstack/kubernetes-vs-openstack) * [What is telco cloud?](/en/topics/cloud-computing/what-is-telco-cloud) * [What is cloud orchestration?](/en/topics/automation/what-is-cloud-orchestration) * [What is cloud governance?](/en/topics/automation/what-is-cloud-governance) * [What is public cloud?](/en/topics/cloud-computing/what-is-public-cloud) * [What is middleware?](/en/topics/middleware/what-is-middleware) * [Cloud vs. edge](/en/topics/cloud-computing/cloud-vs-edge) * [Why build a Red Hat cloud?](/en/topics/cloud-computing/why-choose-red-hat-cloud) * [What is multicloud?](/en/topics/cloud-computing/what-is-multicloud) * [What is Apache Kafka?](/en/topics/integration/what-is-apache-kafka) * [What is cloud architecture?](/en/topics/cloud-computing/what-is-cloud-architecture) * [Why choose Red Hat for middleware?](/en/topics/middleware/why-choose-red-hat-middleware) * [What is cloud automation?](/en/topics/automation/what-is-cloud-automation) * [Types of cloud computing](/en/topics/cloud-computing/public-cloud-vs-private-cloud-and-hybrid-cloud) * [What is an API?](/en/topics/api/what-are-application-programming-interfaces) * [Red Hat OpenShift application services](/en/technologies/cloud-computing/openshift/application-services) * [What is an independent software vendor (ISV)?](/en/topics/digital-transformation/isv-partners) * [What is cloud-based digital banking?](/en/topics/cloud-computing/what-is-cloud-based-digital-banking) * [What is a Kafka service?](/en/topics/integration/what-is-a-kafka-service) * [What is streaming data?](/en/topics/integration/what-is-streaming-data) * [How microservices support IT integration in healthcare](/en/topics/microservices/microservices-in-healthcare) * [What is a service registry?](/en/topics/integration/what-is-a-service-registry) * [What is an event mesh?](/en/topics/integration/what-is-an-event-mesh) * [What is change data capture?](/en/topics/integration/what-is-change-data-capture) * [Why Red Hat for APIs?](/en/topics/api/why-choose-red-hat-apis) * [What is service-oriented architecture?](/en/topics/cloud-native-apps/what-is-service-oriented-architecture) * [What is payments infrastructure?](/en/topics/financial-services/what-is-payments-infrastructure) * [What is the Kubernetes API?](/en/topics/containers/what-is-the-kubernetes-api) * [What is a REST API?](/en/topics/api/what-is-a-rest-api) * [What is multitenancy?](/en/topics/cloud-computing/what-is-multitenancy) * [What is private cloud?](/en/topics/cloud-computing/what-is-private-cloud) * [What is event-driven architecture?](/en/topics/integration/what-is-event-driven-architecture) * [What is IT infrastructure?](/en/topics/cloud-computing/what-is-it-infrastructure) * [What is cloud infrastructure?](/en/topics/cloud-computing/what-is-cloud-infrastructure) * [What is API monetization?](/en/topics/api/what-is-api-monetization) * [REST vs. SOAP](/en/topics/integration/whats-the-difference-between-soap-rest) * [Hybrid cloud security](/en/topics/security/what-is-hybrid-cloud-security) * [Why choose Red Hat for integration?](/en/topics/integration/why-choose-red-hat-integration) * [What is GraphQL?](/en/topics/api/what-is-graphql) * [What does an API gateway do?](/en/topics/api/what-does-an-api-gateway-do) * [What is API design?](/en/topics/api/what-is-api-design) * [What is API management?](/en/topics/api/what-is-api-management) * [What is API security?](/en/topics/security/api-security) * [What is cloud storage?](/en/topics/data-storage/what-is-cloud-storage) * [What is cloud security](/en/topics/security/cloud-security) * [What is cloud management?](/en/topics/cloud-computing/what-is-cloud-management) * [What is integration?](/en/topics/integration/what-is-integration) [More about this topic](/en/topics/integration "More about this topic")