What's behind the hold up of API adoption at credit unions?: Financial institutions are understandably concerned about sharing sensitive member data, but a fintech startup with credit union DNA is looking to change that.

While adoption of application programming interfaces (API) has been commonplace elsewhere, the financial services industry has been slow to get on the bandwagon, but a fintech startup with a credit union pedigree is looking to change that.

"People are overly skeptical of API. I understand the concern about giving others access to financial information because of its value," said Rupert Kingshott, CEO of the Washington, D.C.-based Georgetown University Alumni and Student Federal Credit Union. "However, the world is getting faster and consumers are consistently seeking the most convenient option."

Nikhil Lakhanpal, co-founder of the New York-based Narmi, a mobile and online services firm, said credit union executives shouldn't view APIs as a potential regulatory mandate, but rather an opportunity to enhance the member experience.

"Bill pay and remote deposit capture made the lives of members much easier, fundamentally changed the relationship and has been proven to increase retention," said Lakhanpal. "It is much more cumbersome for a member to close an account if they are paying bills through bill pay. Similarly, it is harder for a member to close an account if they are leveraging your API, whether it is directly or indirectly through a third-party application."

Prior to co-founding Narmi, Lakhanpal served as CEO of Georgetown University Alumni and Student Federal Credit Union. He said he became "incredibly frustrated" with the state of technology in the industry at that time, which was the impetus for the company he would later...