Five Ways APIs Can Enhance Servicing Functions

They work well for digital transformation, user experience, and more

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Application Programming Interfaces (APIs) are all the buzz today – and for a good reason. By enabling connections between programs and systems, APIs help users perform business processes with greater ease and efficiency. Namely, they can help users achieve desired outcomes without paying any mind to the underlying functional and system complexities occurring behind the scenes.

At Black Knight, we have the privilege of delivering APIs that enhance our clients’ business processes across the mortgage life cycle. Notably, we’ve observed the following ways APIs can transform servicing functions for the benefit of both a servicer and their business partners and customers.

1. APIs are Outcome Focused

Traditionally, interfaces used a “data in, data out” approach, with a lot of intelligence and business functions scattered throughout integrating systems upstream and downstream. However, APIs have flipped the script by exposing neatly packaged business functions, including rules, processes, logic and data. Rather than focusing on what systems can do (i.e., inside-out), APIs focus on what outcomes servicers and their customers are trying to do – such as making a payment or setting up auto-draft. This outside-in view simplifies and streamlines the process of achieving desired outcomes.

2. APIs Accelerate Digital Transformation

Technology evolves quickly, and so do mortgage servicers’ needs. To keep pace with the latest regulatory demands and customer expectations, servicers must be positioned to adapt quickly. Previously, servicers had to manage significant underlying technicalities to implement new functionality and services. However, APIs handle these underlying details seamlessly behind the scenes. This means that servicers can implement and begin using new features, fast. And APIs are made available in technology agonistic framework, allowing servicers to choose from a wide variety of tech stack.

What’s more, APIs allow technology providers to bring new solutions to the market quicker. That’s why we operate under an “API-first” strategy at Black Knight – which means that our products are developed and enhanced with the power of APIs.

3. APIs Enhance User Experience

Whether it’s servicer’s frontline employees or back-office staff or their customers, APIs can improve user experiences and drive consistency across devices and channels by acting as the “plumbing” that seamlessly connects everything. Servicers have greater customization power to build their own user experiences, and they can also realize more consistent results across applications thus reducing risk and increasing satisfaction. Plus, APIs offer more possibilities for automation, self-service and real-time engagement, which many of today’s customers expect. Regardless of your unique needs and goals, APIs can help you achieve the precise functionality your servicing business needs, with the power and flexibility to quickly pivot when necessary.

4. APIs Increase Developer Productivity

Similarly, APIs can help developers, architects and designers accomplish more with less time and effort. Since APIs are developed using consistent vernacular and standardized guidelines, they are intuitive to use. Essentially, APIs speak the language of mortgage business, rather than the complex language of systems, which makes working with them easier.

Additionally, many technology providers catalog their available APIs in a central repository, such as the Black Knight Developer Portal. This gives developers a one-stop storefront where they can search for and browse integration offerings for specific use cases.

5. APIs Reduce Risk and Cost

Ultimately, APIs can help servicers reduce risk and total cost of ownership. To start, APIs can reduce risk by tapping into both data and business functions. This can result in consistent channel behaviors that are more secure and scales with the needs of the business.

There are also several ways APIs can help servicers reduce their total cost of ownership. They can lessen or eliminate the need to build and maintain wrap systems with specialized subject matter experts to manage the complexity of the integrations. Using APIs reduces the overall technology footprint and helps modernize infrastructure for servicers. And since APIs are typically sold under simplified contracts, they can be adopted more quickly.

Ready to Get Started?

Whether it’s accelerating innovation or better serving customers, APIs are helping a growing number of servicers digitally transform their business operations. In today’s market, operating nimbly can be a competitive differentiator. If you haven’t already, consider opportunities to strengthen your tech stack with APIs.