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

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

Feb 25, 2023 285 likes •631 views

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

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The State of Open Banking

What you need to know

Ismail Chaib, COO ismail@tesobe.com Point 2018

Auckland, NZ

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SLIDE 2 Point 2018, NZ June 25-26 2018

Background

  • COO, Open Bank Project
  • 5 years in Open Banking
  • Tweet @iChaib

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SLIDE 3 Point 2018, NZ June 25-26 2018

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SLIDE 4 Point 2018, NZ June 25-26 2018

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In the ‘20s, GM introduced Pyroxylin paints and its sales soared

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Banking is facing its Pyroxylin moment

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71%

Of millennials would rather go to the dentist than to a bank

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*Source: The Millennial Disruption Index, Scratch 2014

Times are changing

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The Great Unbundling of FS

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SLIDE 8 Point 2018, NZ June 25-26 2018

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1995 Why do we need a Web site? 2000 2010 2020 Of course we have a Web site Of course we have an API Why do we need an API?

  • Banks gain faster time-to-market and save money
  • Developers have easy data access
  • Customers enjoy improved experience

Individuals & Businesses APIs

The future will be open

“In the next 5 years, 75% of the top 50 global banks will have launched an API platform and 25% will have launched a customer-facing app store”

Bank

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SLIDE 9 Point 2018, NZ June 25-26 2018

Hey Google, what’s my balance…

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Banks can leverage the OBP API to create better customer relationships

iPad Safari Toolbar Type a search here... ...search happens @ my bank Results are displayed here... Bank core banking

Bank API

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SLIDE 10 Point 2018, NZ June 25-26 2018

It’s already happening…

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It’s already happening…

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Source: Understanding APIs in Banking, OBP, Bank Innovation, WBS, May 2018

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Why APIs

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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

Internal Efficiencies External Opportunities Regulatory Compliance

Gain Agility Rationalize and control access Faster development cycle & lower overall cost Outsource R&D & foster innovation Speed-up & Scale fintech partnership efforts New Business Model & Revenue Streams Comply/ Anticipate potential regulatory regime and industry body recommendations

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SLIDE 14 Point 2018, NZ June 25-26 2018

Three types of APIs

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Private Partner Public

Private APIs are used internally to facilitate the integration of different applications and systems used by a company Partner APIs are used to facilitate communication and integration of software between a company and it’s business partners Public APIs allow companies to publicly expose information and functionalities of

  • ne or various systems and application to

third parties that do not necesessarly have a business relationship with them

Advantages: Advantages: Advantages:

  • Rationalize infrastructure
  • Reduced costs
  • Increased flexibility
  • Improved internal operations
  • Value-added service
  • Up sell
  • Must have for business partners
  • Delegated R&D
  • Increased, reach trafic
  • New revenue stream

*Source: 3Scale, The rise of the APIs

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SLIDE 15 Point 2018, NZ June 25-26 2018

PSD2 Impact

15 *Source: Catalyst or Threat – PSD2 report, PwC, 2016

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SLIDE 16 Point 2018, NZ June 25-26 2018

Worldwide movement

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50%

Of G20 countries expected to create open banking API standards

  • r gateways by 2018*

Source: Hype Cycle for Open Banking APIs, Apps and App Stores, Gartner 2015

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SLIDE 17 Point 2018, NZ June 25-26 2018

Regulating Open Banking

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Australia Regulator Diven Market Diven Standardised interfaces Non-Standardised Mexico

Singapore

EU UK

Payment Initiation included Payment Initiation not included Legislation accepted Legislation in discussion
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Which approach to take

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The Open Bank Project is an open source API and App Store for banks and a developer community around.

1/ Open Standard 2/ Open Banking Middleware 3/ Developer Community

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SLIDE 21 Point 2018, NZ June 25-26 2018

API Catalogue

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A catalogue of 160+ API Definitions available

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OBP API Platform Bank’s Legacy IT System Bank’s Customers

On premise

Bank-specific connectors 22

Third Party Apps

Cash management

Accounting

ERP

CRM

Crowdfunding

Savings

Anti fraud

Chatbot

Catalogue of pre- built Restful APIs

Open Banking Middleware

We offer a white-labeled API solution for banks and complementary services

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FinTechs use the Open Bank Project API

9,000

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App Example: Hiveage

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

App Example: Akoni

  • AKONI
  • Cash

management for business

  • akonihub.com

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App Example: Rooster

  • ROOOSTER MONEY
  • Mobile app to manage

pocket money for kids

  • roostermoney.com

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SLIDE 27 Point 2018, NZ June 25-26 2018

App Example: Singing Bank

  • ROOOSTER MONEY
  • Mobile app to manage

pocket money for kids

  • roostermoney.com

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SLIDE 28 Point 2018, NZ June 25-26 2018

They trust us

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Some of the largest financial institutions rely on the Open Bank Project

BNP Paribas Societe Generale Santander UK Australian Payment Council

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SLIDE 29 Point 2018, NZ June 25-26 2018

Open Banking Journey

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  • 1. Sandbox /

Hackathon

  • 2. Partner APIs
  • 3. Scale Up

6 weeks 6 months Mile-stone

Starting with a sandbox & hackathon and moving to production in phases

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SLIDE 30 Point 2018, NZ June 25-26 2018

Case Study: APC FinTech Hackathon

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Impact

  • 1 Sandbox, 12 banks, 50k API calls
  • 120 participants in 2 cities
  • 22 teams, 6 winners
  • Various experimentations
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SLIDE 31 Point 2018, NZ June 25-26 2018

Lessons Learned

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  • Treat your API as a Product
  • Do not wait for the regulation fine print
  • Engage with 3rd parties (e.g. Hackathons)
  • Plan route to production
  • Be Agile!
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How are you preparing?

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

Thank You