API ADOPTION PATTERNS IN BANKING&THE PROMISE OF MICROSERVICES?
Sachin Agarwal
Digital Disruption in Banking
Mobile Cloud Customer Centric
Block Chain Payments FinTech
Traditional Bank’s Challenges
Regulation Security Infighting
Mainframes Slow Vision
What is Hindering Banks from going Digital?
Multichannel
Cloud
Consumer Preferences
Block Chain
FintechSpeed
APIs are key to Competitive Dynamics
But there are some specifics traits and adoption patterns unique to banks
APIs Adoptors in Banking
Adoption Patterns for Banks
1. Unlock Data
Data Services
Packaged Apps
Mainframes
Break Data Silos
Create Customer Centric Views
Expose as APIs
Unlock Data from Legacy Applications
1. Unlock Data
2. Share APIs
Learn to Walk, Before you Run
Learn to share Internally
APIs Foster Internal Innovation and Efficiency• Securely publish, share and use common services• Improve discoverability of internal services• Create internal communities to foster innovation
Internal API Catalogs
• 100’s and 1000’s of APIs unlike a few external APIs
• Searchable
• Policy Based View
• Internal Hackathons
1. Unlock Data
2. Share APIs
3. Security
Realizing End-to-End Security
Managing the User Experience
Securing the App - PII, PHI
Enabling Easy Developer Access
Securing the Channel
Securing the Backend
Major API Security Concerns
API Consumer Security?
Relevance to PCI Compliance• APIs are now part of e-commerce
• Card payments pass through API
• The infrastructure underlying the API?
1. Unlock Data
2. Share APIs
3. Security
4. External APIs
Open APIs or Private APIs?
90% Private/Partner APIs
Customized Contracts/SLA
App Provisioning/Security
API Federation
Why Private APIs?
1. Unlock Data
2. Share APIs
3. Security
4. External APIs
5. Step Away from Monolithic Apps
Monolithic vs Microservices
• Unscalable• Hard to manage• Hard to learn• Slow to deploy
• Scalable• Easier to manage• Easier to learn• Quick to deploy
Why should Banks care?• Benefits
– Improved agility– Better reliability, elasticity– Global scalability
• Challenges– Restructuring the IT organization – Agile, DevOps– Investments in new frameworks & platforms– Greenfield vs. Re-architecting– New skills development
• Design• Development• Testing
Re-Architecting an Application
Monolithic Application
Monolithic Application
Re-Architecting an Application
Re-Architecting an Application
Key Aspects of Digital Banking• Create Digital eco-systems with APIs
• Integrate data and applications to create a digital value chain
• Secure your digital interactions
• Create a scalable hybrid microservices infrastructure
Questions@sachinagarwal@akanainc