•  In essence, an API documents how a system operates, what inputs it will accept, and what outputs the system will provide. •  APIs allow different systems to interact with one another without the need for human intervention. •  In effect, APIs allow users to seamlessly merge multiple data sets from different sources into a single rich data set. Using APIs, systems can be linked to create a system of systems, where the whole is greater than the sum of the parts. Smartphones are a good example. •  Every notification you receive from Twitter or Facebook comes through an API and is displayed on your screen by another API. More efficient transactions Financial institutions are already making use of APIs to enhance efficiency in transactions. •  SWIFT itself is a good example. Previously, international fund transfers were a manual process. Banks sent telex messages to each other to debit funds from one account and credit it to another. The speed of response depended on whether someone was waiting by the telex machine! •  Now, transferring funds only requires banks to send a SWIFT message containing payment instructions to another bank for funds to be moved, at any time in the day. Some banks are selectively opening up their systems to customers, employees, and others. BIS central bankers’ speeches  5  •  Silicon Valley Bank plans to offer an API for payments by the end of the year.
The CPIF is the CPI with a fixed mortgage rate. Sources: Statistics Sweden and the Riksbank  Figure 18. Repo rate Per cent, quarterly averages 5  5 September October  4  4  3  3  2  2  1  1  0  0 06  08  10  12  14  Source: The Riksbank  BIS central bankers’ speeches  15