IPA IP 2024 Question 19

Open API — the bank publishes the specifications of its system interfaces so that contracted outside companies can use its functions from their own services.

An API (application programming interface) is the set of rules by which one program calls the functions or data of another. In an open API, a bank discloses these specifications and lets fintech companies that have signed a contract connect, for example to show balances in a household-budget app or to start a payment. The outside company builds convenient services quickly without screen scraping or holding the customer's password, and access is still controlled by the contract and authentication.

Answer (c)

Why not others:

• •(a) BPO — business process outsourcing hands a whole business process, such as payroll or a call center, to an outside company; nothing is published for others to connect to
• •(b) RPA — robotic process automation has software robots repeat routine operations on PC screens in place of staff
• •(d) Technology management — MOT, managing technology as a business resource to turn R&D into value; a management discipline, not an interface

Key rule: Publishing interface specifications so that outside parties' systems can use your functions is an open API; it is the basis of the API economy and of bank–fintech cooperation.

Business Industry · AI-written, may contain errors