In a typical Software-as-a-Service (SaaS) cloud computing deployment, the web app’s back-end is architected as a set of cloud services accessible through an API.

An API is a connection between a third-party application and a bank. So, in API banking, the tools and services of the bank are made available to a third party in the form of APIs.

Microservices vs SOA (Service Oriented Architecture) As it turns out, the difference between microservice architecture and service oriented architecture — also known as SOA — is relatively small.