The concept of programmable banking leans toward delivering specific financial solutions at the right moment. Here’s an outline of its current and potential uses.
Programmable banking stands out as one of the most transformative innovations in today’s financial system since the digital revolution began reshaping the industry. This concept enables the integration of financial services directly into non-financial tech platforms, such as marketplaces, mobility apps, e-commerce platforms, or enterprise management tools.
With this integration, banking services stop being a destination and instead become an automated functionality. This shift redefines the user experience and reshapes how the global financial system operates.
Programmable Banking Without Traditional Banks
Programmable banking represents a new stage in the evolution of embedded finance—a trend that allows non-banking companies to offer financial services directly through their digital interfaces.
This is made possible through the use of application programming interfaces (APIs), banking-as-a-service (BaaS) infrastructure, and open banking technologies, which foster interoperability between financial and tech players.
Unlike the traditional model, where financial services are offered by licensed institutions through proprietary channels, programmable banking allows banking functions to be automatically triggered based on events, logic rules, or user preferences—within platforms that are not inherently financial in nature.
The ability to “program” financial operations—from account opening and identity verification to payment execution—is a significant step toward decentralized banking intermediation.
In this model, financial services become contextual, automated, and personalized, as they are triggered at precise moments in a customer’s journey. This reduces friction, enhances financial inclusion, and allows for hyper-personalized segmentation—a competitive edge for tech companies and a redefinition of financial roles.
Programmable banking is fragmenting the traditional value chain of the financial system. Historically, banks managed customer relationships, technology infrastructure, regulatory compliance, and product offerings all within a single institution.
Today, those functions can be distributed across fintechs, tech companies, banking-as-a-service providers, and API vendors.
Although still in pilot phases in many countries, programmable banking is advancing rapidly in markets with strong fintech sectors and proactive regulatory frameworks.
For non-financial companies, integrating these solutions offers a chance to boost customer loyalty, improve user experience, and open new revenue streams.
For financial institutions, the challenge lies in offering modular, scalable, and secure services that integrate seamlessly with modern tech systems—without losing relevance or compromising trust.
It’s important to clarify: programmable banking does not seek to eliminate the banking system. Instead, it proposes a structural transformation—where financial services stop being a destination and become an ever-present, invisible layer that supports users wherever they are.
According to financial expert Fernando Boudourian, digitalization is reshaping both private banking and the customer relationship model.
To embrace this shift, a reconfiguration of business models, regulatory frameworks, and technological architectures is essential—paving the way for a more inclusive, efficient financial system that can meet the evolving needs of today’s world.