How tech can turbocharge bank connectivity
Read time: 5 mins | Date of posting: 23/06/2026
Treasury and operations teams are rethinking how they exchange payment and cash management information with their banks, with speed, visibility and automation now expected.
In this article, Lewis Anderson, Senior Director, Transaction Banking Solutions at Lloyds International, explores how new connectivity models are helping organisations modernise transaction banking.
Changes in the payment landscape
For many years, online banking portals have been the primary way treasury teams interact with their bank. While these portals represented a major step forward, they rely on manual processes including multiple logins, file uploads, card readers and sequential approvals.
During the pandemic, these limitations became more visible. What should be routine payment activity often involved delays, manual intervention and operational risk.
Today, as part of wider digitalisation initiatives, treasury teams are reassessing how they connect to their bank. Host-to-Host (H2H) and Application Programming Interface (API) connectivity represent the next stage in this evolution, offering a more seamless, automated and resilient way to manage payments and information flows.
Why consider H2H and API technology?
Direct connectivity for faster, simpler banking
H2H and APIs both provide a direct connection between a client and their bank, removing reliance on online portals for day-to-day activity.
Key benefits include:
- Faster processing through automation and straight-through processing.
- Reduced manual intervention and operational risk.
- Improved security through controlled system‑to‑system connectivity.
- Better use of treasury resource by removing repetitive tasks.
By integrating directly with Enterprise Resource Planning (ERP) or Treasury Management Systems (TMS), activities such as payment submission, bank statement retrieval and reconciliation can be completed in minutes rather than hours.
While H2H and API connectivity involve higher initial setup and maintenance than online banking, these costs are typically offset by efficiency gains and process simplification over time.
Example use cases
H2H and API connectivity support different treasury needs and are often used together.
- H2H connectivity - Best suited to high‑volume or scheduled activity, such as bulk payment files or routine reporting, where straight‑through processing reduces manual intervention.
- API connectivity - Better suited to real‑time or event‑driven actions, such as triggering individual payments or receiving instant balance and transaction updates.
Bringing connectivity and accounts together
Connectivity is only one part of an effective transaction banking setup. To realise the full benefit, clients also need account structures that support efficient payments, cash visibility and liquidity management. Lloyds Bank Gem® provides a single platform that brings together connectivity, payments and accounts, giving treasury teams flexibility over how they operate today and confidence to scale as needs change.
Supporting you as your needs evolve
Lloyds Bank takes a consultative approach, working with treasury teams to understand their operating model, payment flows and future ambitions. This consultative approach ensures solutions are shaped around real operational needs rather than technology for its own sake.
Lloyds Bank Gem® is a registered trademark of Lloyds Bank plc. Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
