SynapseFI provides an API interface to connect banks with developers and businesses. Services include payments, bank account creation, account aggregation, risk mitigation and compliance tools. In addition to providing payment services, they also offer online bank login facilities, allowing customers to connect an existing bank account quickly and easily. This supports instant account verification, real-time balance retrieval, access to bank account ownership information, and provision of transaction history. The SynapseFI offering also includes fund settlement, account creation and risk mitigation, as well as compliance services.
How It Works
Our WLCF team worked with SynapseFI when we created and launched the Invest Next Door platform. The Canada-based company operates in the US market, providing digital lending for community lenders.
Due to the strict legal regulations concerning crowdfunding in the USA, our client asked us to provide this integration in order to automate their platform. The client was not authorised to hold client money; every transaction on the platform had to be submitted through the SynapseFI API. Implementing the escrow account was also quite important in this case.
On the Invest Next Door platform, lenders can invest on loan opportunities from their bank account directly; without having to transfer money to the platform. Users can simply link up accounts with the lending platform, and create investments in real time. Thanks to the automation, there is no need to manually approve, check or verify any transfers or withdrawals.
Implementing the Integration
When we began the SynapseFI integration for the Invest Next Door site, our team initiated the process by familiarising themselves with the documentation, creating a road map and dividing the integration process into smaller steps. They then began connecting different API endpoints, and testing the calls within the sandbox testing environment.
As Pawel Szewczyk, Project Lead Manager at WLCF, explains: “This process took a little while, as we had to make sure that both systems talked to each other, and that all the financial transactions would be reflected in the same way on both systems.” It was a challenging aspect of the integration, but thanks to the sandbox environment, all bugs were removed before the code was merged to the live environment.
Thanks to the skilled and proactive team at SynapseFI, communication and collaboration were smooth from day one. Whenever challenges were faced, the SynapseFI team was ready to offer support and guidance.
The Final Result
The main benefit of the SynapseFI integration on the Invest Next Door site is the level of automation on the platform. The unique functionality means that lenders can link up their bank account to the platform and make an investment instantly with a single click, with no need to add funds to the platform or insert card numbers every time. All funds, meanwhile, are kept securely in the escrow account. As such, the integration of the two systems has cut down the cost of labour that would be required were a manual process used instead.
If you’re thinking of integrating SynapseFI into a platform, or would just like to find out more about the integrations we offer, don’t hesitate to contact us.