The document discusses the development of open finance and the need for a connective tissue between open finance players. It proposes the creation of a marketplace platform called LUXHUB that would serve as a central hub where open finance providers and consumers can connect. Currently LUXHUB operates a developer portal but plans to transition to a modern web architecture that allows for self-onboarding and offers diversified products. The marketplace aims to reduce costs and barriers for players while improving standards, trust and the user experience across the open finance ecosystem.

1. The connective tissue to
Open Finance
0 8 / DE C / 2 0 2 1
A mutual platform to accelerate and
optimize the future of finance
R a d u P o p a , CT O

2. I N T R O D UC TI O N
LUXHUB in short
2
is …
LUXHUB is committed to becoming the leading hub supporting the global financial industry evolution towards Open Finance through
powerful, robust and secure API connectivity
Founded based on the sharedvisionof
the leading Luxembourgbanks
A regulatedPFS by the National Competent
Authority in Luxembourg
A regulatedAISP/ PISPby the National
Competent Authority in Luxembourg
The2nd largestEuropeanOpenBanking
Hub(EBA days, June 2019)
Customers
60
Countries
10

3. 3
The Open Banking phenomenon
And its evolution towards Open Finance

4. T H E O P E N B A N K I N G P H E N O M E N O N
OPEN BANKING: a global
phenomenon
4
Regulatory-driven Open Banking
developments (incl.regulatory-endorsed
standards)
Industry-driven Open Banking developments
(through bilateral and/or industry associations &
standards)
Russia
Australia
New
Zealand
China
India
Kenya
South-
Africa
Nigeria
Peru
Chile
Mexico
Costa Rica
Brazil
US
Canada
Indonesia
Philippines
Malaysia
Kazakhstan
Sri Lanka
Japan
Source: INNOPAY analysis;Statista;Konsentus;Open BankingReadiness Index 2021 (Mastercard & PCM)
 Globally, market and regulatory driven API initiatives push
API relevance and accelerate the opening-up of data in the
financial sector
 As of 2020, 24.7 million individuals worldwide used open
banking services - a number that is forecast to reach 132.2
million by 2024
 Europe counted approximately 12.2 million open banking
users - this figure is expected to reach 63.8 million by 2024
(50% of total users)
 By December 2022, the total number of monthly API calls
across EEA & UK is expected to reach 7.1bn
 API business models enable banks and Fintechs to leverage
new digital opportunities
 Extensive API offerings of leading banks and Fintechs indicate
a proactive approach

5. E V O L V I N G T O W a R D S O P E N F I N A N C E
From early adoption to legislative
imposition
5
Natural evolutionfrom early adopters
 UK’s CMA9 already sharing data with a broader scope than that
included in PSD2
 Banks in continental Europe are slowly expanding the data made
available through open APIs, moving towards Open Finance
 Credit card transactions, mortgages, savings and investment
accounts are increasingly available via APIs
 Market initiatives are being developed in connected areas: Open
Wealth, Open Insurance, etc
Extension of legislation
 Australia Consumer Data Right (CDR) puts basis for the sharing of
data not only within the banking industry but across other
sectors too - including insurance, investment, energy and
telecommunications
 Legislative proposal for Open Finance in EU is on the horizon for
2022-2023

6. A D I V E R S E E C O S Y S T E M
Highly dynamic sector with traction from traditional
players & newcomers
6
PROVIDERS
CONSUMERS
HUBS
CORPORATE
USERS
END
USERS
• traditional financial
institutions
• fintech companies
• Fintechs
• financial institutions themselves
• indirect consumers (retailers using OB API
directly or via payment gateways
• platform/technical service
providers
• API aggregators
• customer of corporate banking services
• customer of enterprise software vendors
• ERP software vendors themselves as consumers
• customer of a retail financial institution
• customer of a fintech providing PFM or similar
services
• investors that are picking up on the potential of
the sector
• growing specialized, active and qualified
workforce that is looking for new challenges

7. 7
The good, the bad, the missing link
The sector to date

8. T H E G O O D
What has worked well so far?
8
Legislative framework
started by Open Banking in
UK and PSD2 in EU is
extending & getting traction
Market initiatives
expand beyond
compliance
Increasing number of
participants - both service
providers and service
consumers
More sophisticated
products are entering the
market
Number of “transactions”
on open finance rails is
increasing together with
end user adoption
Lines between consumers
& providers are blurring –
e.g. banks consume
competitor PSD2 APIs

9. T H E B A D
What growing pains have there been?
9
Still quite heavy fragmentation due to
non-harmonized and non-standard
approaches
Lack of engagement between
participants
No service guarantee or governance,
except for compliance requirements in
this direction
Good number of service providers stuck into
compliance assurance and not seeing value in
opening up other type of services
Service consumers begin to reach limitations of services
already available via Open Banking – i.e. basic AIS/PIS services
are becoming commodities

10. F R O M T H E A P I P E R S P E C T I V E
10
Service providers begin
to shift their offerings &
present them in API
format (generally via an
API gateway)
Most providers propose
own developer portal
with documentation,
usage examples, SDK,
etc
Standards for access
control, or even data
format, begin to be
publicly available and
implemented
Service consumers
begin to integrate
API form different
providers or even
different, but
related, verticals
Hubs offerings begin
to extend outside
compliance area
End users still have
several hurdles to
pass: variable level
of trust in the
offerings, different
UX, etc
Some level of access
control
standardization
begins to be noticed
For example: FAPI and other OpenID Foundation initiatives for
access control; API standards for Open Finance (BG, conex areas
API standards, Open Wealth in Switzerland, Open Insurance, etc.)
The trends behind the tech

11. 11
Filling the gap
The connective tissue between all Open
Finance actors

12. C R E A T I N G A S C H E M E F O R O P E N F I N A N C E P L A Y E R S
A common set of rules, a common playground & common
goals
Most Open Finance players are currently facing similar challenges. To effectively enter
the API Economy and/or take full advantage of it, they need to rely on a robust
infrastructure, which provides them with:
12
 A set of rules for admission criteria and certification program
 Standardized access control and user journey
 Well-defined business models
 Assured governance and mediation
 Level playing field for all participants
 Warranty quality of offerings for partners
 Warranty trust for end users

13. C R E A T I N G A S C H E M E F O R O P E N F I N A N C E P L A Y E R S
A dedicated infrastructure
13
The Marketplace brings participants together in a self-regulated framework, where they can find partners for their business initiatives - while
providing them all the “behind the scenes” services they need, so they can concentrate on their business.
 Build and leverage synergies by putting together partners, providers and consumers
towards a common goal.
KYC/AML CRM
Product
catalog
Trusted sales channel
Billing Community
management
Reporting

14. T H E C O N N E C T I V E T I S S U E
The connective tissue between all participants
14
THE LUXHUB
MARKETPLACE
A single platform to enable the exchange of services and expertise - and
create new revenue streams
A full-cycle, technical platform where all sector actors can
promote their products and services to others and/or subscribe
and integrate the products and services of others.
A consistent and high standard of experience for all users – both
business and technical, provider and consumer.
Catalysing the organic evolution of the sector, with increased adoption
and sophistication
Removing the barriers to entry, enhancing and accelerating value,
opening up new revenue streams

15. T H E C O N N E C T I V E T I S S U E
A full-cycle
Marketplace
LUXHUB end-user solutions
catalog
Curated & vetted Fintech offerings
LUXHUB Open Finance
API catalog
Premium Op. Fin. APIs
PSD2 APIs
Integrated & consistent Marketplace
experience powered by LUXHUB
Optionalconnectionsto otherrelevant stakeholders
financial dig. ecosystem(e.g. investors)
End-user
solution
provider
API consumers
End-user
solution
consumer
API providers 1 2
3
5 4
6
Bank publishes basic
(complianceor premium)
Open FinanceAPIs on
LUXHUB marketplace.
API consumersfind, accessand
integrateAPIs by using
marketplace. LUXHUB supports
with contracting,testingand
integration etc.
API consumers build
sophisticated (end-
user) solutions on top
of APIs for internal &
external use.
Solution consumer searches&
integratesapplication. LUXHUB
supports e.g. with initial due
diligence.
End-user solution provider plans to
publish solution on Marketplace.
LUXHUB does initialvetting& e.g.
supports again with publication.
More solutions
becoming available,
encouragesmore API
providers to
participatein
ecosystem.
 Imposed PSD2 APIs
 Premium Open Finance APIs
 End user solutions

16. T H E C O N N E C T I V E T I S S U E
Built on solid foundations for
mutual benefit
16
TRUST
STANDARDIZATION
EXPERTIZE
GOVERNANCE
CERTIFICATION
SUPPORT
Firm foundationsfor
value scope
expansion

17. T H E C O N N E C T I V E T I S S U E
A mutually beneficial platform
17
Reduced time to market
Reduced costand time-to-
market due to all of the
abovepoints
EXPERTIZE
Make their offeringvisible,
curated and promoted
Tap into broad and qualified audience
to generatenew business
Bypasstime-consuming aspectsand
concentrateon core business Guaranteethe quality of their
servicesto potential
consumers
Providea unified and strong
user experienceto the service
consumers
KEY PROVIDER BENEFITS
PROVIDER
CONSUMER
A diverserange of servicesall in one
place, which they can start consuming
with trust
Readied infrastructurefor serviceconsumption: technical
setup,documentation,billing, etc
Possibility to becomeprovidersthemselv
by enhancingexisting offering
A consistently stronguser experiencefor
the servicesthey consume
Toolsto ease their journey: sandboxes,environments,
security,tech support,managementtools,contractualand
legal support,etc
KEY CONSUMER BENEFITS

18. 18
The concept in action
From PSD2 API provider to premium Open Finance API
consumer

19. C O N C E P T I N A C T I O N
Compliance to connection
From PSD2 to account aggregation
via LUXHUB ONE
 Financial institutions onboarded on to the LUXHUB
Marketplace as part of the imposed PSD2 compliance process
 Utilizing the secure and supported API Portal to expose their XS2A
API(s) to requesting TPPs
 LUXHUB then developed and promoted their LUXHUB ONE product -
which enables the accelerated connectivityto multiple XS2A APIS via a
single integration layer – within the same platform
 Multiple XS2A providers than turned consumers to integrate LUXHUB
ONE in order to provide account aggregation services to their end users
 Now with AIS/PIS licenses, a similar process is also available for TPPs –
with the FinTech Marketplace enabling such innovators to then promote
these added value solutions, providing a full cycle experience
BANK A
1. Lists its PSD2 API in the
Marketplace (as a provider)
2. Gains access to multiple PSD2 APIS from the
Marketplace via LUXHUB’s premium solution
(LUXHUB ONE) – as a consumer
3. Provides end users with the ability to
connect data from multiple banks within a
single interface
4. Enables end users to access an
aggregated view of their finances

20. 20
Where we are today
And what we have planned for the near future

21. O U R M A R K E T P L A C E : C U R R E N T & F U T U R E
High level road map & aspirational timeline
Classic developer portal based
on API managementsolution,
with out-of-the-box
capabilities, extended to host
providersin multi-tenant
fashion
Providersbenefit
from customizable
space
For consumers,with
additional process
steps for: KYC, access
validation etc.
Tech support,
connectivity, enhanced
security,several
environments,
sandboxing, etc.
Hence the
Developer Portal
moniker
Headless CMS, BPM driven
processes,independenceof
API managementsolution,
enhanced and standardized
accesscontroletc.
Currently
underway
O U T - O F- T HE B O X CU ST O M
SP ACE
SE L F O N B O AR DIN G ADDIT IO N AL
SE R V ICE S
T E CH B IASE D MO DE R N WE B
AR CH IT E CT U R E
U X / U I
E N H AN CE ME N T
21
KEY
 Current offering
 Current development
 Future plan
AP I SE L F-
P U B L ISH IN G
Includingcontentediting
access
PROVIDER & CONSUMER SELF
ONBOARDING
Automated process
with additionalhuman
verificationsin place
OFFERING DIVERSIFICATION
No longer only APIs, but
other related products
(irrespectiveof tech)
CERTIFIED FINTECH
MARKETPLACE
Consumers become
serviceproviders
themselvesin a
curated,trusted way
MASHING CAPABILITIES
Advanced composition
and servicespublishing
capabilities
GLOBAL MARKET
EXPLANSION
Taking it worldwide
AND MORE TO COME….

22. Thank you
Any questions?

23. CONTACT
INFO@LUXHUB.COM
LUXHUB.COM
@LUXHUBONE
radu.popa@luxhub.com