The State of Open Banking What you need to know Ismail Chaib, COO - PowerPoint PPT Presentation

The State of Open Banking What you need to know Ismail Chaib, COO Point 2018 ismail@tesobe.com Auckland, NZ

Point 2018, NZ June 25-26 2018 Background • COO, Open Bank Project • 5 years in Open Banking • Tweet @iChaib 2

Point 2018, NZ June 25-26 2018 3

Point 2018, NZ June 25-26 2018 In the ‘20s, GM introduced Pyroxylin paints and its sales soared 4

Banking is facing its Pyroxylin moment 5

Times are changing 71% Of millennials would rather go to the dentist than to a bank *Source: The Millennial Disruption Index, Scratch 2014 6

The Great Unbundling of FS 7

Point 2018, NZ June 25-26 2018 The future will be open Why do we need a Web Of course we have a Why do we need an Of course we have an site? Web site API? API 1995 2000 2010 2020 ● Banks gain faster time-to-market and save money ● Developers have easy data access Individuals & Businesses ● Customers enjoy improved experience “In the next 5 years , 75% of the top 50 global banks will have launched an API platform and 25% will APIs have launched a customer- facing app store” 8 Bank

Point 2018, NZ June 25-26 2018 Hey Google, what’s my balance… Type a search here... iPad Safari Toolbar ...search happens @ my bank Results are displayed here... Bank core banking Bank API Banks can leverage the OBP API to create better customer relationships 9

Point 2018, NZ June 25-26 2018 It’s already happening… 10

Point 2018, NZ June 25-26 2018 It’s already happening… Source: Understanding APIs in Banking, OBP, Bank Innovation, WBS, May 2018 11

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Point 2018, NZ June 25-26 2018 Why APIs The value of APIs have already become apparent as a way to help reduce time to market, allowing banks to move away from legacy systems and harness 3rd party relationships Gain Agility Internal Rationalize and control access Efficiencies Faster development cycle & lower overall cost Outsource R&D & foster innovation External Speed-up & Scale fintech partnership Opportunities efforts New Business Model & Revenue Streams Regulatory Comply/ Anticipate potential regulatory regime and industry body Compliance recommendations 13 13

Point 2018, NZ June 25-26 2018 Three types of APIs Private Partner Public Private APIs are used internally to Partner APIs are used to facilitate Public APIs allow companies to publicly facilitate the integration of different communication and integration of software expose information and functionalities of applications and systems used by a between a company and it’s business one or various systems and application to company partners third parties that do not necesessarly have a business relationship with them Advantages: Advantages: Advantages: • Rationalize infrastructure • Value-added service • Delegated R&D • Reduced costs • Up sell • Increased, reach trafic • Increased flexibility • Must have for business partners • New revenue stream • Improved internal operations *Source: 3Scale, The rise of the APIs 14

Point 2018, NZ June 25-26 2018 PSD2 Impact *Source: Catalyst or Threat – PSD2 report, PwC, 2016 15

Point 2018, NZ June 25-26 2018 Worldwide movement 50% Of G20 countries expected to create open banking API standards or gateways by 2018* Source: Hype Cycle for Open Banking APIs, Apps and App Stores, Gartner 2015 16

Point 2018, NZ June 25-26 2018 Regulating Open Banking Standardised interfaces Australia Mexico UK Market Regulator Diven Diven EU Singapore Payment Initiation included Payment Initiation not included Legislation accepted Legislation in discussion 17 Non-Standardised

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Point 2018, NZ June 25-26 2018 Which approach to take 19

Point 2018, NZ June 25-26 2018 The Open Bank Project is an open source API and App Store for banks and a developer community around. 1/ Open 2/ Open Banking 3/ Developer Standard Middleware Community

Point 2018, NZ June 25-26 2018 API Catalogue A catalogue of 160+ API Definitions available 21

Point 2018, NZ June 25-26 2018 Open Banking Middleware Bank’s Customers Third Party Anti fraud Chatbot Savings ERP Apps CRM Accounting Crowdfunding Cash management Catalogue of pre- built Restful APIs OBP API Platform Bank-specific On premise connectors Bank’s Legacy IT System 22 We offer a white-labeled API solution for banks and complementary services

9,000 FinTechs use the Open Bank Project API 23

Point 2018, NZ June 25-26 2018 App Example: Hiveage • Hiveage: e-Invoicing Solution • hiveage.com 24

Point 2018, NZ June 25-26 2018 App Example: Akoni • AKONI • Cash management for business • akonihub.com 25

Point 2018, NZ June 25-26 2018 App Example: Rooster • ROOOSTER MONEY • Mobile app to manage pocket money for kids • roostermoney.com 26

Point 2018, NZ June 25-26 2018 App Example: Singing Bank • ROOOSTER MONEY • Mobile app to manage pocket money for kids • roostermoney.com 27

Point 2018, NZ June 25-26 2018 They trust us Societe Generale BNP Paribas Santander UK Australian Payment Council Some of the largest financial institutions rely on the Open Bank Project 28

Point 2018, NZ June 25-26 2018 Open Banking Journey 1. Sandbox / 2. Partner APIs 3. Scale Up Hackathon 6 weeks Mile-stone 6 months Starting with a sandbox & hackathon and moving to production in phases 29

Point 2018, NZ June 25-26 2018 Case Study: APC FinTech Hackathon Impact 1 Sandbox, 12 banks, 50k API calls • • 120 participants in 2 cities • 22 teams, 6 winners • Various experimentations 30

Point 2018, NZ June 25-26 2018 Lessons Learned • Treat your API as a Product • Do not wait for the regulation fine print • Engage with 3 rd parties (e.g. Hackathons) • Plan route to production • Be Agile! 31

How are you preparing?

Thank You Ismail Chaib, CEO ismail@tesobe.com +49 (0)30 8145 3994 www.openbankproject.com 33