Simon Redfern introduces the why's, what's and how's of Open Banking and asks if its possible for banks not to be "open"

1. Open Banking
To be or not to be?
Simon Redfern, CEO
simon@tesobe.com 12 June, 2019

2. Who are we?
TESOBE
• Berlin based tech and consulting team
• Founded Open Bank Project (OBP) in 2010
• Inspired UK open banking
The Open Bank Project
• Leading Open Banking Solution
• Standard Catalogue with 230+ APIs
• Global developer and partner community
• Global Tier 1 Customer Base
2

3. In the future, every bank will have an API
Customers expect it!
33% of digitally active
consumers globally use at least
two FinTech services
(*EY 2018)
Good for Banks
In the UK alone, Open
Banking market could be
worth £7.2bn by 2022
(*PwC 2018)
Regulators want it!
To date, 40 countries
have adopted a form
of Open Banking
3
(*TESOBE 2018)

4. Why should you care?
Accelerate innovation with
external partnerships.
Identify, test and validate
new business models
Build, scale, manage and
retire digital services faster.
Drive downs costs in
deployment and support
your organisation to become
more nimble
REGULATORY
COMPLIANCE
Meet regulatory needs in
your markets - and be ready
for wider markets adopting
open banking
Innovate faster Speed time to market Get ahead!
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EXTERNAL
OPPORTUNITIES
INTERNAL
EFFICIENCIES

5. What are the O’s in Open Banking?
OPEN SOURCE
5
OPEN STANDARDS
OPEN DATA
OPEN ACCESS
OPEN INNOVATION

6. Open Banking around the world
6

7. What is PSD2?
LEVEL PLAYING FIELD
7
CONSENTS
SCA
SECURITY
NON REPUDIATION
EXEMPTIONS
QUALITY OF SERVICE

8. Which flavour depends on “The Why”
ANTI CORRUPTION
TRANSPARENCY
8
FINANCIAL INCLUSION,
EDUCTION
SUSTAINABLE ENERGY
vs GLOBAL WARMING
COMPETITION SECURITY, WATER,
TRANSPORT
HEALTH, AGRICULTURE
+ TOURISM

9. It’s a Journey!
9

10. What do the actors need?
CUSTOMERS
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REGULATORS
STARTUPS
CONSULTANCIES
BANKS
LAWYERS!
IT FIRMS
COMMUNITY

11. Open APIs are hard
Banks willing to adopt an open API solution face similar challenges
APIs are not just about deployment, it’s a business and cultural issue
Design
- Which API to expose?
- How do I design them?
- How to move beyond
compliance?
Build
- How do we build APIs quickly?
- How do we integrate with our
legacy?
Manage
- How do we secure our APIs?
- How do we control access?
- How do we scale them?
- How do we upgrade
and maintain
Operate
- How do we attract 3rd
party partners
- How do we monitor?
- How do we monetize
11

12. What is the Open Bank Project?
The Open Bank Project is an open source API
solution for banks + developer community.
Global developer
community
Open Source API
platform
Open
standards
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13. Technical Overview
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Bank Legacy Systems
Core Banking
Connectors
API Gateway
+ Tools
Pre-built
Catalog
Sandbox
Env
Compliance
Add-ons
Physical Virtual Private Cloud Public Cloud
End-to-End
Dev Experience
OBP middleware solution connects to your legacy systems and abstract away the complexity of your
legacy to expose modern and fintech-friendly APIs

14. 230+ Pre-built bank-specific APIs to accelerate Bank’s API rollout.
Pre-built API Catalogue
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15. OBP gives banks everything needed to run a successful API programme 15
End-to-End Developer Experience
15

16. Over 10,000 Fintech developers worldwide use Open Bank Project APIs 16
A global fintech developer and partner ecosystem

17. Some of the largest financial institutions rely on the Open Bank Project
Built with input from many banks
17
we’ve worked with include leading and global tier one banks.
Our technology has been used in over 60 client engagements.

18. Open Banking Journey
1. Sandbox
TESOBEBank
● Deploy a branded Sandbox Env
Generate test data
● Run Hackathon (Optional)
● No connection to the bank
needed
● No data required
● Move to production env
● Connect to legacy
● Open limited number of APIs
according to local regulatory
specifications
● Run security and compliance
tests
● Define regulatory scope
● Give access to legacy systems
● Training on OBP
● Open & connect more APIs
(out of +200 existing OBP APIs)
● Source FinTech Partners &
manage global dev community
● Active API monitoring
● Maintenance, improvement and
support of the platform
● Define use cases for additional APIs
● Define partner profile & approve
onboarding process
● Request new APIs & features
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1. Experiment 2. Comply 3. Scale
6 months6 weeks Mile-stone

19. How To Be!
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“And before you
leave the
market place,
see that no one
leaves with
empty hands.” -
Kahlil Gibran

20. 20
Simon Redfern, CEO
Twitter @simsysims @OpenBankProject
https://www.openbankproject.com/reports/
https://github.com/OpenBankProject
Reports + Source
Code