The current state of banking APIs Open APIs are high priority for financial institutions What are banks doing about it? How important are Open APIs to banks? 2 http://www.briansolis.com/2016/12/top-10-retail-banking-trends-predictions-2017/ https://mgboyd.com/state_of_the_market_banking_apis_2016
Banks need to think differently To accelerate digital banking customer acquisition 1.7 billion digital banking customers in Asia by 2020 Know the customers Engage & Re-imagine the Evolve into experience Everyday Banks delight Deepen and Change the sustain loyalty distribution mix http://www.mckinsey.com/~/media/mckinsey%20offices/singapore/2014%20digital%20banking%20in%20asia% https://www.accenture.com/us-en/~/media/Accenture/Conversion-Assets/Microsites/Documents17/Accenture- 20-%20winning%20approaches%20in%20a%20new%20generation%20of%20financial%20services.ashx 2015-North-America-Consumer-Banking-Survey.pdf 3
Digital Payslip Embedding banking in everyday life 4
The digital channel usage in banking The banking product sales via digital channels remain low Which channels are the biggest sources Percentage of total sales from of customer acquisition digital channels https://thefinancialbrand.com/55611/customer-centricity-digital-banking-strategy/ 5
The channel usage in banking The digital channels are used mostly for transactions & servicing 6
What is the right business model? Digital leaders are adopting ‘ecosystem’ business models Omni-channel Ecosystem business driver o Owns customer relationship o provides branded platform o Multi-channel, multi-product o Plug & play 3rd party products experience o eg. Banks o matches customer needs with providers o eg. Amazon Supplier Modular producer o Sells through other o Plug & play product / company o eg. Insurance via agent service o Able to adapt to different ecosystems o eg. PayPal http://sloanreview.mit.edu/article/thriving-in-an-increasingly-digital-ecosystem 7
Omni Channel vs Ecosystem Successful digital businesses are adopting ecosystem business models Omni Channel Ecosystem Paper / Forms Internet Banking Mobile Banking App Compare Properties Builders & Designs vs Moving Services Property Market Info Compare Loans Legal Services Bank Bank 8
Powered by partnerships Partnerships help enrich the platform and enhance the distribution Assessment of bank's strengths versus Assessment of Fintech’s strengths versus Fintech’s weaknesses bank’s weaknesses Strength of banks Weakness of Fintech firms Strength of Fintech Weakness of Banks Existing customer base 83 Absence of legacy software/systems 80 70 75 Need to build customer base Constrained by legacy technology 79 Reputation for trust and stability Capacity to innovate 81 Lack of customer trust 66 Lack clear strategic vision 81 80 79 Experience with regulators Less regulatory pressure 70 82 Inexperience with regulation Under regulatory pressure 80 77 Full line of banking products Agility and speed to market 78 79 Limited line of products Culture not suited for rapid change 79 76 Deep financial pockets Technology expertise Lack of investment capital 74 Inability to requite/retain tech talent 66 80 Effective risk-management programmes Able to improve current products 80 Lack of experience in risk management 75 Unwillingness to cannibalise products 75 9 http://www.economistinsights.com/technology-innovation/analysis/disruption-banking
Banking re-imagined Embedding banking in our everyday life Click the Video Above or Visit below URL http://bit.ly/tipsgoapi 10
Open Marketplace Platform Products and services that serve lifestyle needs Employment Health Education Household Transport Others… APIs APIs APIs APIs Marketplace Services (identity, product catalogue, product comparisons, relationships, recommendations) Partner Integration Bank Integration Banking Platforms Partner Platforms 11
Business Architecture Open Marketplace Platform Mobile and Social media apps that Halo Pay Third Party Mobile apps and Web apps help build the eco-system Apps halo halo halo Spaza ….. ….. Wala pay vendor agent APIs Security / Authentication Marketplace Platform to help grow and manage the Use Cases Analytics Data Model eco-system by providing value added services for 3rd party consumption Halo pay Use case 1 Use case 2 Reporting Notification Behavior Acquisition Tools Bank Integration Partner Integration Integration Banking systems Business Technology Bank 1 Bank 2 Business Partners Technology Partners that provide Partners Partners payments, providing providing Payments Loans Deposits Payments Loans Deposits Insurance Healthcare SMS Push Chat compliance and technical non-Banking banking products capabilities products Risk KYC AML Risk KYC AML Funeral Cover Education Social USSD OTP 12
WSO2 Open source powering a low cost platform Halo Pay Third Party Mobile apps and Web apps Apps halo halo halo Spaza ….. ….. Wala pay vendor agent APIs Security / Authentication Platform Use Cases Analytics Data Model Use Case Halo pay Use Case 1 Reporting 2 Notification Behaviour Acquisition Tools Bank Integration Partner Integration Integration Flexible to quickly integrate to multi Bank 1 Bank 2 Business Partners Technology Partners partners or banks in different countries Payments Loans Deposits Payments Loans Deposits Insurance Healthcare SMS Push Chat KY Risk AML Risk KYC AML Funeral Cover Education Social USSD OTP C 13
TipsGO APIs Accelerate innovation and co-creation with Open Banking APIs Banking, Advice and Marketplace APIs 14
Digital workforce manager for SMEs Help manage staff, chat, prepaid purchases and salary payments Employment 15 https://myp.mobi/en/
Payment partnerships A Wallet for every industry 16
Social partnerships Social app for churches in Africa Stay connected with the church, make offerings and contributions conveniently 17
Influencing financial behavior through gamification in developing economies, 160 million adults save semi-formally http://getwala.com/ 18
Innovation challenges Partnerships are helping us address key challenges % Respondents 2014 2015 Risk-averse Not enough Leadership Development Not enough culture great ideas commitment times are too customer long insight Cant measure Compensation Selecting the Lack of Marketing performance not tied to right ideas to coordination innovations well innovation commercialize 19 https://www.bcgperspectives.com/content/articles/growth-lean-manufacturing-rising-need-for-innovation-speed/
Thank you! Any Questions? Rana Peries https://www.linkedin.com/in/ranaperies @RanaPeries
Recommend
More recommend
