Open Banking Services and Developer-Friendly APIs Sophie Guibaud VP European Expansion, Fidor @SophieGuibaud Munich – Berlin – London – New York www.fidorbank.uk | www.fidor.de | www.disruptive-banking.com
Open Banking Services and Developer-Friendly APIs Sophie Guibaud VP European Expansion, Fidor @SophieGuibaud Munich – Berlin – London – New York www.fidorbank.uk | www.fidor.de | www.disruptive-banking.com
FIDOR TODAY
// WHERE DOES BANKING STAND TODAY?
Internet
Smartphone
Tablet
Permanent Connectivity
HOW CONSUMER’S LIFE HAS CHANGED
Hierarchy
No Listening Culture
Legacy Systems
Regulations
Lower IT budget
CHANGES IN TRADITIONAL BANKING
Sources: The Millennial Disruption Index, Viacom Media Networks Survey + The Digital Disruption in Banking, Accenture
Don’t think their bank offers anything different than other banks
Consider their banking relationship to be transactional rather than relationship driven
Want their bank to proactively recommend products and services for their financial needs
Are interested in real-time and forward-looking spending analysis
53%
48% 71%
51%
LISTEN TO WHAT CUSTOMERS WANT
// APIs AND THE BANKING INDUSTRY
Source: Shutterstock
APIs, or Application Programming Interfaces are specific “languages” that define how two separate software applications can talk to and understand each other. In more technical terms, APIs are a set of programming instructions and standards allowing data exchange. A company can provide an API to a public or private group, so that other applications can easily perform a software integration and build new services on top of the original solution
WHAT IS AN API?
GROWTH IN APIs SINCE 2009
BANKS AS FINTECH ENABLERS
By 2016, 25% of the top 50 global banks (by assets) will have launched a banking app store for customers
FINTECH AS BANK ENABLERS
// PSD2: WHAT IS AT STAKE FOR BANKS?
PSD & PSD2
PSD – 2007 (2009) Harmonise EEA payments through the creation of the legal platform for SEPA
PSD2 – 2013 (2015) Extend PSD by opening up the payments marketplace to newer entrants for more choice for consumers & businesses
PSD2 THE INFLEXION POINT FOR BANKS
Opening Up the Jewel Box Banks provide Open Access to customer Accounts to 3rd party enquiries Banks lose control as own channels potentially get replaced by task-oriented third-party apps
Open Access to Accounts
Third-Party Providers TPPs develop payment apps using customer data Customer opt-in for balance enquiry and transaction initiation
Regulation, Regulation, Regulation Europe-only (initially) XS2A is part of the 2nd Payment Services Directive (PSD2) – legal in 2017
Preemptive Action or Obligation Better to disrupt yourself and win seat at the high-table for decision making, or risk being forced
POWERED BY APIs
IT LANDSCAPE
NEW REVENUE SOURCES
& BUSINESS MODELS
COMPETE
OR
COLLABORATE?
OPEN BANKING STRATEGIES
// THE HYBRID MODEL FOR BANKS The Fidor Case
#BuildFidor Help us build the bank of your dreams
COMMUNITY-DRIVEN APPROACH
#BankingWithFriends Advise from people you trust
HOLISTIC BANKING EXPERIENCE
DEVELOPERS’ COMMUNITY SUPPORT
POWERED BY AN API ECOSYSTEM
Fintech As A Service
PSD2 AND BEYOND
Payment APIs Non-payment APIs
‘Regulated PIS/AIS’ (PSD2)
‘non-regulated PIS’ ‘non-regulated AIS’
Digital Customer Services Infrastructure (DCSI)
Access makes real time commerce possible
Ani
mat
ed
• Payment guarantee • ‘Real-time’ payment • Refund/refuse services • Conditional payments • Dispute resolving
services • Crypto payments
• E-Mandate management
Involved APIs
• Y/N SCT initiation • Y/N fund
availability • Account balance • TRUE/FALSE acc
verification
• Authentication • Online contracting • Age verification • Intraday bank statement • Attribute provisioning • Payment Status Report
THANK YOU FOR YOUR ATTENTION! Sophie Guibaud VP European Expansion, Fidor @SophieGuibaud Munich – Berlin – London – New York www.fidorbank.uk | www.fidor.de | www.disruptive-banking.com