The reality of bank connectivity maintenance

The overlooked reality: connectivity needs continuous maintenance

Most treasury teams think about connectivity as a one-time setup. You connect your banks, configure the formats, test everything, and then move on.

But that is not how it works in practice.

Bank connectivity needs continuous maintenance to stay aligned with external changes. These changes happen more often than many teams expect, and they come from different directions.

For example:

• Regulatory updates like Verification of Payee (VoP)

• New requirements such as structured address formats in payments

• Industry-wide migrations like camt.053 and ISO 20022

• Bank-specific changes in formats, channels, or protocols

These are not small updates that you can ignore. They directly affect how your connectivity works on a daily basis.

They can impact:

• Payment processing

• File formats

• Validation rules

• Bank acceptance

• Internal workflows

In reality, this means that even if your setup works today, it may not work tomorrow without updates.

If these changes are not handled properly, the consequences can be serious. Payments may fail or be rejected. Processes may slow down. Teams may need to fix issues manually. In some cases, there can also be compliance risks.

This is why connectivity should not be seen as a finished project. It is an ongoing process that needs attention and ownership.

So while the market often focuses on how to connect to banks, the real challenge is different:

How do you keep everything running smoothly while the world around you keeps changing?

APIs are growing up, but they do not remove the problem

APIs first became important because of PSD2. At that time, they were mainly a regulatory requirement.

Today, that has changed.

Banks now use APIs more strategically. They offer premium APIs with more features and better data, using them to stand out in the market. APIs are no longer just about compliance. They are part of modern banking services.

But this does not remove the maintenance challenge.

APIs are not fixed. They change over time. Versions are updated, documentation evolves, and behavior can differ between banks. What works with one bank may not work the same with another.

For treasury teams, this means APIs require ongoing attention. Connections need to be monitored, tested, and updated regularly.

So while APIs improve connectivity, they also increase the need for active management.

The real gap: fragmentation + constant change

There is still no single standard across all banks, services, and regions. Each bank works differently, and APIs are not the same everywhere. Some are strong, others are still developing, and not all services are covered. This means companies still rely on a mix of methods like APIs, host-to-host (SFTP), EBICS, and SWIFT.

At the same time, external changes continue. Regulations evolve, standards are updated, and banks adjust their systems.

This creates a double challenge. Treasury teams must deal with fragmentation and constant change at the same time.

As a result, connectivity is not just about building connections. It is about keeping them aligned and working over time, which is where many teams struggle.

Maintenance strategies: build it yourself or outsource it

When it comes to managing connectivity maintenance, companies usually have two options. They either handle everything internally or rely on an external provider.

1. Manage it in-house

This means taking full ownership of the entire process. The treasury or IT team is responsible for keeping connectivity up to date and working at all times.

In practice, this includes:

• Monitoring regulatory and industry changes

• Updating formats and mappings when standards evolve

• Adjusting bank connections when requirements change

• Testing and validating every update before going live

• Coordinating with multiple banks across different regions

At first, this may seem manageable, especially with a limited number of banks. But as the network grows, the effort increases quickly.

In reality, this approach requires:

• Dedicated project teams that can focus on connectivity

• Strong technical and banking knowledge

• Continuous time and budget to manage updates and fixes

It is also important to understand that this is not a one-time effort. Connectivity maintenance does not stop after implementation. It becomes part of daily operations.

For many organizations, this is where challenges start. As complexity grows, it becomes harder to scale this model without adding more resources. Teams can end up spending a lot of time on maintenance instead of focusing on improving treasury processes.

2. Use a full-service provider

The alternative is to rely on a provider that manages connectivity and its maintenance as a service. Instead of handling every change yourself, the provider keeps your setup up to date.

This means:

• External changes are handled centrally

• Format updates are managed for you

• Bank-specific adjustments are maintained

• Compliance requirements are continuously supported

This reduces the pressure on internal teams and lowers the risk of errors. Instead of reacting to every change, you work with a setup that stays up to date by design.

The focus shifts from: “Are we still compliant and operational?” to “How do we improve our treasury processes?”

Cobase is an example of this approach. It combines multiple connectivity methods in one platform and continuously manages updates, so your bank connections remain stable, compliant, and easy to operate.

The reality: connectivity is becoming hybrid… and harder to maintain

APIs are clearly the direction of travel. But they are not replacing existing methods. They are adding to them.

In practice, companies use a mix of:

• APIs for real-time access

• Host-to-host (SFTP) for bulk payments

• SWIFT for global reach

• Local standards like EBICS

This hybrid model is necessary for full coverage. But it also increases complexity.

Because now, maintenance is no longer about one system.
It is about keeping multiple connectivity methods aligned and working together, while external changes keep happening.

Structured data improves things… but does not simplify them

With ISO 20022 and camt.053, data is becoming richer and more structured.

This is a major step forward.

But it does not remove complexity:

• Banks still implement standards differently

• Data fields are not always used consistently

• Interpretations vary across regions

So the challenge shifts: From collecting data to maintaining and standardizing data across changing inputs.

What this means for treasury teams

Modern connectivity brings clear benefits:

• Faster integrations

• Better data

• More real-time capabilities

But it also introduces new challenges:

• Ongoing external changes

• Increased fragmentation

• Continuous maintenance requirements

This creates a new reality: Connectivity is no longer a project. It is an ongoing process.

And without the right approach, complexity only increases over time.

The missing piece: orchestration + maintenance

This is where most strategies succeed or fail.

Using multiple connectivity methods is not the problem. In fact, it is often necessary to achieve full coverage. The real challenge is making sure everything works together in a consistent and reliable way.

Treasury teams need to keep connections aligned, compliant, and up to date at all times. This is not easy when working with different banks, formats, and systems.

To manage this, two elements are essential.

The first is orchestration. This means bringing all connections together into one clear way of working. Workflows are standardized across banks, data is normalized into one format, and approvals and controls are managed centrally. Instead of dealing with multiple systems, treasury teams work from one interface.

The second is continuous maintenance. External changes do not stop, so connectivity must be updated regularly. This includes handling regulatory updates, adjusting formats, and adapting to bank-specific changes. It also means making sure everything stays compliant over time.

Without orchestration and maintenance, a hybrid setup does not reduce complexity. It only moves it somewhere else. Instead of dealing with banks, teams end up dealing with systems and exceptions.

With the right approach, connectivity becomes easier to manage and better supports daily treasury operations.

So, are APIs the future?

Yes. But not on their own.

APIs are an important part of modern bank connectivity. They offer speed, flexibility, and better access to data. For many use cases, they are already the preferred option.

However, they do not replace everything else.

Companies still need other connectivity methods to ensure full coverage. They also need standardization to make data and processes consistent. And just as important, they need ongoing maintenance to keep everything working as systems and requirements change.

So while APIs play a key role, they are only one part of the bigger picture.

The future of bank connectivity is best described as API-first, but still hybrid and continuously maintained. This means using APIs where they add value, while combining them with other methods and keeping the entire setup up to date over time.

Conclusion

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