Webhook Overview
Webhooks are a method used to enable real-time communication between different applications. In the context of Banking as a Service (BaaS), webhooks facilitate the instant transfer of information regarding specific events, allowing integrated services to react promptly without the need for constant polling.
How Webhooks Work:
- Event Occurs: An event happens within the banking system, such as a transaction being processed or a change in account status.
- HTTP Request: The BaaS platform sends an HTTP POST request to a pre-configured URL (the webhook endpoint) that belongs to another application (like a mobile banking app or financial management service). This request typically includes a payload of relevant data.
- Data Processing: The receiving application processes the incoming data, such as updating user account details, sending notifications, or triggering additional workflows based on the received information.
- Response: The receiving application acknowledges the request, usually responding with a status code like 200 OK.
Use Cases:
- Transaction Notifications:
When a customer makes a transaction (e.g., a purchase or transfer), our platform can send webhooks to notify connected applications, allowing them to update user accounts in real-time and send confirmation alerts to customers. - Account Status Changes:
When there are changes to a user’s account, such as opening, closing, or updating account types, webhooks can inform integrated applications to ensure they reflect accurate data and notify the user about these changes. - Fraud Detection Alerts:
Webhooks can be used to notify applications of potential fraudulent activities, allowing them to take immediate action to protect user accounts and alert customers.
By implementing webhooks, FinTechs can enhance user experience, streamline operations, and enable seamless integration between various financial services, ensuring timely response and engagement with customers.