Payment Services get closer to the client€¦ · Getting Started Innovation goes far beyond R&D (OECD Definition) CREDIT SUISSE (Switzerland) Ltd, Payment Services August 24, 2018

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


Capture from Client Process Send to the Market

MT 940camt.052/53/54

e-DocumentsPrint

SWIFTSEPA (EBA)SIC Interbank

…

A PaymentIt is not Simple



Client Behavior

Regulation

Shareholder

A PaymentGet closer to the client



Connect & IntegrateGet closer to the client



� 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


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)


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)


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


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)


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)


Payment Initiation

JSONPAIN.001 SBS

Payment Initiation

A L

evel

B L

evel

C L

evel

1

Cal

l 1




Trace & TrackIntroduction of SWIFT gpi


Trace & TrackIntroduction of SWIFT gpi


Trace & TrackChallenges


Trace & TrackChallenges

Trace & TrackIntegration Potential


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


User Story:– client wants to provide the UETR of a recent1) payment to the recipient.

UETR:

121:eb6305c9-1f7f-49de-aed0-16487c27b42d




Q & ALet’s discuss or …
