Ομιλία – Παρουσίαση: Άσπα Παλημέρη, Country Manager, Ελλάδα, Κύπρος & Μάλτα, Mastercard Τίτλος Παρουσίασης: “Open Banking: from compliance and beyond”

1. Digital Banking Forum, 2018
Open Banking:
from compliance and
beyond…
Aspa Palimeri
Country Manager GR, CY and MAL

2. ©2017Mastercard.ProprietaryandConfidential.
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Open Banking
Open
APIs
PSD2 is an attempt by EU
to foster competition,
and innovation in
banking, while improving
security
Strong
Customer
Authentication
(SCA)
PSD2

3. ©2017Mastercard.ProprietaryandConfidential.
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Being an open bank
means operating like a
platform, with a business
model that connects
processes with assets
and a technology
infrastructure to manage
internal and external
interactions
CHANNELS
PRODUCTS
SYSTEMS
CHANNELS
PRODUCTS
SYSTEMS
API
Platform
TRADITIONAL BANK OPEN BANK
Customers Customers
TODAY TOMORROW
3rd Parties
Source: Accenture Research

4. ©2017Mastercard.ProprietaryandConfidential.
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Two primary use
cases for TPPs
(1/2)
AISP
Account Information Service Providers
Exemplary AISP
Customer
Login
1
2
3
4
5
1
Balances in
various banks2
Overall view
of finances3
Customer
adds his new
account
4
Customer
adds his new
account
5
Customer BankAISP (TPP / Bank)

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Two primary use
cases for TPPs
(2/2)
PISP
Payment Initiation Service Providers
Merchant
& PISP
Exemplary PISP
Customer Bank

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Open Banking is already
being tested as a way to
extend the bank’s value
proposition from key
banking players (both
traditional and
“challenger”)
Launched in 2015, N26 started operating as a digital
bank leveraging API connections
• Currently the bank broadens its services portfolio by
adding new partnerships, also based on APIs
BBVA launched its open API platform
• BBVA API Market offers so far eight commercially
available APIs to TPPs who will be able to build new
solutions by accessing bank customers’ data
Nordea launched its open banking portal targeted
towards external developers
• Open Banking platform aiming to prepare Nordea for
PSD2 and potentially ensure a first mover advantage.
Danske Bank launched beta version of its new open
API platform
• Still in development; it is expected to offer a sandbox
environment to test API integrations with the apps and
the community support.

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PARTNER ROLE DESCRIPTION OFFERED SERVICE
ENABLING
TECHNOLOGY
MARKETPLACE
Online marketplace for
European savings products
in Germany
Fixed term deposits at attractive rates by
EU banks
API
ROBO-ADVISER
Leading German insurance
robo-adviser Clark
Digitized insurance service provider API
MARKETPLACE
Startup matches individual
lenders with individual
borrowers
Consumer loans marketplace, matching
borrowers to lenders
Not Disclosed
ROBO-ADVISER
Manages different portfolios
of assets through robo-
advisors
Manages different portfolios of assets
through robo-advisors
API
MONEY TRANSFER
PLATFORM
Processor that allows to
transfer money abroad
quickly with low cost
Processor that allows to transfer money
abroad quickly with low cost
API
PAYMENT
INFRASTRUCTURE
Private cash/payment
infrastructure
Cash withdrawals and deposits in grocery
stores
Not Disclosed
N26 is currently working with an array of fintech partners, incorporating their
services into its product portfolio

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Other market players are
also enabling white-label
platform solutions
Fidor Bank launched FidorOS platform
• As one its services, Fidor provides the foundation
of BaaS white label cloud solution powered by an
open API (incl. EU license, AML, etc.).
• As a first adopter of Open Banking principles
and API, Fidor designed fidorOS platform – able
to run an entire digital bank while ensuring
growth and simplifying collaboration with third
parties.
API-based platform for composing white-label
banking solutions
• SolarisBank provides fintech platform for SME –
BankUp, based on bank’s infrastructure.
• BankUp is an API accessible platform to provide
companies with modular building blocks. Banking
companies can be combined for a high-degree of
customization (digital banking, repaid cards, P2P
payments, crowdfunding solutions, etc.).
Offering Illustrative

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Germany
2014
https://fino.digial
Business
Activity
Business
Model
Differentiators
• fino provides account switching API that allows the app to
analyze the old account information and copy it to the new
account with very little user involvement
• Further to PSD2 implementation and use of data analytics,
Bank will be able to deduct the dees paid by the customer
for bank account in other banks.
• Client uses bank’s account as secondary, a better offer can
be presented in order for the Client to switch his primary
bank account.
• Makes bank account switching seamless and time efficient
process
• Bank can analyze transaction data of individual and SME
customers to identify where customers hold their primary
account and present a completive offering in order to
convince the customer to switch. Using fino bank can
provide a fast and easy way to transfer all essential
settings, saved information and transaction history to the
new bank account.
Open Banking Concepts I. Account Switching

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UAE
2016
www.emiratesnbd.com
Business
Activity
Business
Model
Differentiators
• The fitness account is a mobile-based savings account that
allows customers to get higher interest rates depending on
their physical activity
• Customers can improve interest rate up to 2% by
performing various sport activities e.g. thresholds depending
on the steps taken each day
• The progress is monitored and measured via wearables and
phone
• Offers significant interest rate boost for performing
physical exercise
• Aligned with healthy lifestyle
• Positive impact on bank’s image
• Introduction of new product to bank’s portfolio targeted at
fit customers – a bank account can be coupled with a
selection of products (e.g. wearables for progress tracking)
and services (e.g. insurances and healthy plans)
Open Banking Concepts II. Fitness Account

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Morning work-out
7:00am
Training according
to guidelines in a
fitness app from
bank’s partner
app linked with
fitness
community
1
Custom Demo Offer
7:55am
Katerina is among
top 100 runners in
Athens this week.
She receives
special depo offer
on available funds
in other bank
(AISP,PISP)
2
P2P Payments
1:00pm
Katerina paid for a
group lunch. She
uploads the receipt
to split the bill
among participants.
Her bank processes
payments as PISP
5
Advanced PFM
8:00pm
PFM notification
payday is
approaching. Bank
has a budget plan
prop, based on
recent spending
behavior
8
Transportation
8:30am
Buying a bus
ticket via banking
app, with 10%
cash back
3
Commuting to work
8:35am
News feed based
on customer
preferences and
interests involves
local product
placements e.g.
new restaurant
4
Lead Generation
7:00pm
Katerina meets
with her friend to
plan an inter. Trip.
She buys online
insurance from
partner via bank
app
6
Loyalty Program
7:20pm
Push notification
informs Katerina
that she collected
loyalty points for
purchases from the
airline she purchased
her ticket
7
Katerina
As a result, bank induces customer engagement throughout the day and
monetizes mobile usage with own and partner’s offers

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Open Banking Summary
What is Open Banking? Europe is leading the way Impact on Data
• Stands for the trend
towards greater
access to private
data held by
financial institutions
• Typically done by use
of APIs that enable
third parties to build
application &
services around the
data held by
financial institutions
• Banking beyond
payments – use
cases around
account information
will be key
• On very conservative
assumptions Open
Banking flows can
be similar to today’s
card transaction
number (~ 300bn)
within 10years.
• However, flows
most probably will
be much greater
200
800
2 700

13. “A company without an API is like a
computer without the internet”