Payment Services get closer to the client Credit Suisse (Switzerland) AG Product Management Payments Martin Walder August 24, 2018 Public
Payment Services get closer to the client
Credit Suisse (Switzerland) AGProduct Management Payments Martin WalderAugust 24, 2018
Public
Getting StartedInnovation goes far beyond R&D (OECD Definition)
2August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Innovation goes far beyond the confines of research labs to users, suppliers and consumers everywhere –in government, business and non-profit organisations, across borders, across sectors, and across institutions
The Oslo Manual for measuring
innovation defines four types of
innovation: product innovation, process innovation, marketing innovation and organisational innovation
� Product innovation: A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics.
� Process innovation: A new or significantly improved
production or delivery method. This includes significant changes in techniques, equipment and/or software.
� Marketing innovation: A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.
� Organisational innovation: A new organisationalmethod in business practices, workplace organisation or external relations.
https://www.oecd.org/site/innovationstrategy/defininginnovation.htm / Data: Oslo Manual, Third Edition” prepared by the Working Party of National Experts on Scientific and Technology Indicators, OECD, Paris, para. 146.
A PaymentCapture – Process - Execute
3August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Capture from Client Process Send to the Market
MT 940camt.052/53/54
e-DocumentsPrint
SWIFTSEPA (EBA)SIC Interbank
…
A PaymentIt is not Simple
4August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Capture from Client Process Send to the Market
Client Behavior
Regulation
Shareholder
A PaymentGet closer to the client
5August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Capture from Client Process Send to the Market
Connect & IntegrateGet closer to the client
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Capture from Client Process Send to the Market
� PSD2 valid as of Jan 13, 2018
� Obligation for open interface for payment initiation and account information as of
Sept 2019
� Order with obligation
of open banking and account opening standards
� UK-wide API
standards
� Many other imitativesworldwide
� ISO is working on a
global standard
– Segregated not coordinated
actions lacking critical mass
� Big players need to implement
PSD2 for hosted EU locations
� Bank individual API cases lacking IT budget because of missing consent management
� Swisscom already announced
will for open API implementation
� Swiss Finance startup demanding open API implementation
� Hypo Lenzburg already API implementation live
� Swiss Fintech Innovation defining Standards for open API implementation
Connect & IntegrateAPI Starting position
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1
23
� Active demand of ERP-providers for SME
� 3rd part providers (TPP) start to organize themselves to lobby for open banking
41
Connect & IntegrateCorporate API – the Swiss approach (1/2)
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Corporate API as Hub � Services and usecases are standardized
� Range of offering as new USP
� Resources for offering widely spread within the bank
� Front up investment needed while first services will not be profitable
� Chance of sales uplift as well as risk of loosing revenues to disruptive players
� Chance of reusability of front up investment by using a hub against limitations
� Much movement within the market, no clear trend visibleBank A resources
Client
Bank B resources
Hub
Software
Bank B connectionBank A connection
APIs
Consent
Credit Suisse
� Read, validate and store TPP repository� Ensure proper functionality of APIs for a
defined set of use cases (Payment and Account Information)
� Provide 2nd and 3rd Level Support� Validate TPP, confirm rules for revoking/
service restriction� Use current e-Fraud detection setup for
transactions� Ensure valid testing and release
management
SIX
� Certification, onboarding and management of TPP and banks
� Manage TPP repository � Running 3rd party portal� Routing and management of transaction
flow between TPP and Credit Suisse� Provide 1st and 2nd Level Support to
TPP and Credit Suisse� Monitor, report API’s calls� Provide functional specifications for each
release, organize and drive test activities between TPP and CS
TPP
� Certification by SIX� Send order to SIX � Submit initiation of a single payment by
Credit Suisse � Get list of authorized accounts� Get basis account information of an
authorized account� Get balances for a specific account� Get transaction information for a given
account� Ensure valid testing and release
management
Connect & IntegrateCorporate API – the Swiss approach (2/2)
9August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Credit Suisse
� Account Access� Payment instruction submission
Other
� Account Access� Payment instruction submission
ERP/
Accounting
Platforms SIX
Corporate
API Platform
APIs/Legal
Framework
APIs/Legal
Framework
APIs/Legal
Framework
Connect & IntegrateThere are many more ways
10August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
ERP/
Accounting
Platform
Separate Certificates (e.g. EBICS VEU) for one client
Client
ERP/
Accounting
Platform
Corporate API: Starting Use Cases
ERP/
Accounting
Platform
Corporate Seal (e.g. EBICS, SWIFT for corporates)
Client
ERP/
Accounting
Platform
Separate Seal (e.g. EBICS ) for several clients
Client
Client
ERP/
Accounting
Platform
Corporate API: Potential Use Case
IoT …
Connect & IntegrateAdapted technology (1/2)
11August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Payment Initiation Account Information
JSON
A Level
B Level
C Level 1
C Level 2
C Level 3
B Level
C Level 4
C Level 5
Call 1 Call 2 Call 3 Call 4 Call 5 Pos 1
Pos 2
Pos 3
Pos 4
A Level
B Level
D Level 1
D Level 2
D Level 3
C Level
C Level
JSONPAIN.001 SBS PAIN.053 SBS
Connect & IntegrateAdapted technology (2/2)
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Payment Initiation
JSONPAIN.001 SBS
Payment Initiation
A L
evel
B L
evel
C L
evel
1
Cal
l 1
A PaymentGet closer to the client
13August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Capture from Client Process Send to the Market
Trace & TrackIntroduction of SWIFT gpi
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Trace & TrackIntroduction of SWIFT gpi
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Trace & TrackChallenges
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Trace & TrackChallenges
Trace & TrackIntegration Potential
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Link to tracker
User Story:– client wants to provide the UETR of a recent1) payment to the recipient.
UETR:
121:eb6305c9-1f7f-49de-aed0-16487c27b42d
Trace & TrackIntegration Potential
19August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
User Story:– client wants to provide the UETR of a recent1) payment to the recipient.
UETR:
121:eb6305c9-1f7f-49de-aed0-16487c27b42d
A PaymentGet closer to the client
20August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services
Capture from Client Process Send to the Market
Q & ALet’s discuss or …
21August 24, 2018CREDIT SUISSE (Switzerland) Ltd, Payment Services