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No-Stack Banking with the Model Bank of the Year
2015*
*awarded by Celent, an Oliver Wyman Company
No-Stack Banking with the Model Bank of the Year 2015*
Fidor Bank AG
Florian Moser – Business & Product Development
@moseflo
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No Stack Banking by Fidor BankThe Bank and its tec stackProject set-upCommercial Model and going forward
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We see more and more “stackless” business models
The world’s biggest…
…taxi company owns (almost) no cars.
…accommodation provider owns no
real estate.
…popular media owner creates no
own content.
…most valuable retailer has no inventory.
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Payment and Banking are constant companions
Get up, breakfast, check your account
Buy a ticket for the metro
Grab a breakfast
Pay your colleague for lunch
Pay a bill
Book concert tickets
Buy some beers
• Regular active requests by the customer
• Regular touch points with the customers
• More and more is done mobile
• Part of the day-to-day needs and activities
• Customer rewards useful notifications
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Banking services can enrich various business models that lack this day-to-day contact
Retailers Cash-Back services
Telcos
Utility provider Media/TV companies Insurances
…or Gaming communities, lifestyle, car manufacturer – or any kind of greenfield start-ups
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No-Stack Banking?Partner 100% customer orientation, product definition, brand, customer base, added-values!
Our contributionBanking license +
API
Your contributionBrand + customer
base
Fidor Bank 100% tec-driven digital banking processes, API supported, regulated, proven!
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No-Stack Banking is a branded software-as-a-service solution for 100% digital banking services
New services and add-on features
New data endpoints
Digital reputation
Enhanced loyalty and stickiness
Monetization of existing processes and new revenue sources
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No-Stack Banking offer
• We provide or you design the native and responsive apps, using our APIs
• We provide the technology• We provide license shelter,
and banking services• We manage the regulations
and compliance• Our (customer) services are
a feature of your solution• We offer additional services
like design, UX, customer service, analytics
• You pay as you grow
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No Stack Banking by Fidor BankThe Bank and its tec stackProject set-upCommercial Model and going forward
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Fidor Bank – a tec-driven and regulated entity• Full European Banking license since
2009 with ongoing internal + external audits (KPMG, Deloitte)
• Own balance sheet >300 m EUR
• MasterCard Principal Membership
• Regulated by German Financial Supervisory Authority “Bundesanstalt für Finanzdienstleistungsaufsicht” (BaFin) under No. 120505
• Assets protected under the German deposit protection fund
• Strong (internationally) experienced Management Team
• Based in Munich (HQ) with customer service in Berlin and offices in London and New York
• Bank Giro Account• Credit Card Issuing
(Co-Branded Debit MasterCard)
• SEPA network transfers
• Global money transfer
• Overdraft loan• Consumer loan*• Emergency loan• Saving deposits• Capital bonds
Banking Products
• Regulatory reporting
• Treasury and settlement services
• Risk management• Scoring• AML/PEP/sanction
systems and checks• Customer
identification (KYC) processes
• Customer service• 3rd party
management• Debt collection
services
Banking Processes
Set-up of full white label banking and payment services at a minimum
cost base - pay as you grow!
*in development
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The Tec-Stack
Fidor Bank + fidor Operating System
core banking system (by G&H)
+ add on modules(AML, SEPA etc.)
APIs
Partner UX• Fidor’s infrastructure is
modern and modular
• State of the art two-speed architecture that combines regulatory core banking system with a highly flexible middle layer (fidor Operating System) and your front-end
• No legacy systems
• Developed in agile oriented Ruby/Rails
• Highly open infrastructure through best in class REST APIs with OAuth 2.0
IndividualPresentation Layer
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fidorOS Modules and technical set-up for No Stack BankingfidorOS is a suite of white-label ready, API enabled application modules for digital banking
fidorOS is designed to work seamlessly with our core banking system. It not only provides all the basic banking functionalities but it also is expandable, thanks to its modular design
- All hosting stays within Fidor’s premises
- Regulatory-wise, all customers are Fidor customers
- Own core banking instance allows 1:1 customer relation without Fidor approaching the customer
- Fidor IBAN
fidor
OS
API
Community
App Manager
Banking CMS Backoffice
Analytics Scoring Module
Identity Service
fidorX
Loyalty Module
MasterCard Gateway
Message Bus
Core Banking System BANCOS by G&H
Entity Fidor Bank Germany
White Label Banking 1
White Label Banking 2
White Label Banking …
White Label Banking n
Regulatory customer ownership: Fidor Bank AG
Economic Customer relation 1
Economic Customer relation 2
Economic Customer relation …
Economic Customer relation n
Mobile banking offer 1…n
Mobile Apps Fidor Bank Germany
Web banking offer 1…n
Web Banking Fidor Bank Germany
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Selection of APIs Available TodayWe use these for customer projects and native apps
Account The Account API allows listing accounts of a customer, viewing an account, creating an account, and updating an account.
Customer The Customer API creating customers, updating customers, viewing customer data, viewing the FIN, and updating the FIN.
CardThe Card API supports listing all cards of an account, ordering a card, viewing card data, viewing the PIN, changing the limit, canceling, locking, unlocking, blocking and activating a card. We also support wish pin, where a customer can set their pin when ordering.
Short Term Loan API to request a short term loan for an account, create a short term loan, and show the current short term loan
Overdraft API to list overdrafts for an account, create overdrafts, or update overdrafts.
Global Money Transfer
API for customers to make Global Money Transfers, backed by The Currency Cloud service.
Blocked Amounts API supports services blocking an amount in an account for a specific period of time. Example use case is with card authorization.
Transactions API to access transactional data
Transfer APIs APIs for internal transfers, SEPA, Batch, etc…
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No Stack Banking by Fidor BankThe Bank and its tec stackProject set-upCommercial Model and going forward
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Technical set-up
fidorOSAPIs
Apps Native Apps iOS
Android
Multi Language
Easy ReBranding
modular
Technology,Core Banking,
AML, transfers,etc…
by Fidor
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• Mobile only solution• Fidor’s experienced Project
Management team takes care of Project Implementation & Delivery
• Minimum Viable Product• Cooperation: Virtual Joint Venture
Native App Development with Partner Android iOS
Exemplarily MVP based on current project• Mobile only Bank
Account inkl. mobile onboarding
• Contactless Debit Card• SEPA Transfer• Instant P2P
closed-loop transfer to friends
• Personal Finance Manager
• Objective: Primary banking account for customer
• Add-on features based on partner API
DEMO
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Illustrative MVP Concept: multi-phase/agile rollout for a fast market entry with regular product updates
2016 2017 2018 2019
# of customers
5K 50K 150K 250K
Phase 1
• Mobile App• 60 sec KYC• Basis
transactions• Card• Integration of
partner loan/payout functionality
Phase 2
• Payments• Push
Notifications• In-App Data
Changes
Phase 3
• Emergency Credit
• Overdraft• Savings Bonds
Phase 4
• Installment Loans
• Saving Plans• International
accounts
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White Label Native App provided by Fidor to be extended and branded
• 3 Step Onboarding• Customer provides all
relevant data• Country Specific• Identity verification• Account opening
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White Label Native App provided by Fidor to be extended and branded
• Immediate Account opening and IBAN provisioning
• Legitimation via Video-Ident or Post-Office process
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White Label Native App provided by Fidor to be extended and branded
• Login via e-Mail or Mobile Phone Number
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White Label Native App provided by Fidor to be extended and branded
• Account overview• Info about pending
notifications• …
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White Label Native App provided by Fidor to be extended and branded
• Card display (PAN, CVC, expiry date)
• Block card• Set card limits• Deactivate ATM • Order new card
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White Label Native App provided by Fidor to be extended and branded
• Send money to friends
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White Label Native App provided by Fidor to be extended and branded
• Send money to other banks
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No Stack Banking by Fidor BankThe Bank and its tec stackProject set-upCommercial Model and going forward
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No-stack banking enables you utilize economies of scale and potentially to participate in revenue share
Fidor Provides full stack banking services, including technology, regulatory processes, transaction desk etc. with a “pay as you grow” concept
Revenue Share in virtual joint venture optional
Variable 3rd party and transactional costs
SEPA transfers (in/out)Internal transfers (P2P)Credit Card productionCredit Card processing costsKYC (video or classic)Customer service inquiriesCustomer Ident and core banking registration...
Technical Set-Up (API, Mobile
App integration/development etc.)
Yearly Banking Operations fee per
customer
Indicative high-level offer
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3 reasons for teaming up with Fidor!
Fast Go to Market: Speed matters! – Fidor is expert in developing 100% digital banking1
From Bankers to Bankers: We know how to bridge the gap between regulation and new technological developments2
Low Risk and cost through digital processes, success related pricing and co-entrepreneurial spirit3
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Thank you!
Dr. Florian Moser Business & Product
DevelopmentFidor Bank AGSandstraße 33, 80335
MunichGermany [email protected]
@moseflo