Successfully reported this slideshow.

Standardising APIs: Powering the Platform Economy in Financial Services

1

Share

1 of 37
1 of 37

More Related Content

Similar to Standardising APIs: Powering the Platform Economy in Financial Services

Related Books

Free with a 14 day trial from Scribd

See all

Related Audiobooks

Free with a 14 day trial from Scribd

See all

Standardising APIs: Powering the Platform Economy in Financial Services

  1. 1. Standardising APIs: Powering the Platform Economy in Financial Services Richard Tomusk API Lifecycle Product Manager at SWIFT Neil Munro API Lifecycle Product Manager at SWIFT Joe Joyce API Solutions Engineer at SmartBear
  2. 2. Proprietary & Confidential 22 2009 6.5M+ users 12 22,000+ 3 610+ customers employees founded global offices open source initiatives
  3. 3. Proprietary & Confidential 3 SmartBear Product Portfolio = Breadth and Depth Design Create Test Deploy Monitor Standardising APIs Powering the Platform Economy in Financial Services
  4. 4. What’s the Context? Standardising APIs Powering the Platform Economy in Financial Services
  5. 5. FIs have traditionally operated like castles protecting their territory, with moats to dissuade outsiders As such, an open platform economy has not flourished in financial services Financial Services: A Traditionally Closed Environment Standardising APIs Powering the Platform Economy in Financial Services
  6. 6. Standardising APIs Powering the Platform Economy in Financial Services Opening Banking Up Regulators have seen the power of APIs to open up retail banking markets and spur competition Closed banking: Bank owns the customer relationship Open Banking: Bank or third-party owns the customer relationship
  7. 7. Standardising APIs Powering the Platform Economy in Financial Services SWIFT Standardized API Approach No standard data model Varying identity & security schemes Different API channels per bank FRAGMENTATION Inconsistent business models Fragmented API specs Varying API capabilities across firms Data model Open API specifications Identification, authentication, authorization Consumption models STANDARDIZED API APPROACH STANDARD THE API MARKET IN THE FINANCIAL INDUSTRY REMAINS FRAGMENTED…
  8. 8. Standardising APIs Powering the Platform Economy in Financial Services What is Standardisation?
  9. 9. Standardising APIs Powering the Platform Economy in Financial Services What Do We Mean By Standardisation? Data model Business model / flows Identity Security Connectivity Delivery process Lifecycle management
  10. 10. Standardising APIs Powering the Platform Economy in Financial Services Why Standardise?
  11. 11. Standardising APIs Powering the Platform Economy in Financial Services Standardisation is a Fundamental Requirement for a Prosperous API Economy in Financial Services to Take Root Reduce cost to providers and consumers Increase reach by building on existing technology and relationships Focus on strengths and spend less on basic infrastructure Be innovative using building blocks that others provide SWIFT is collaborating with its users to standardise APIs. We aim to:
  12. 12. Standardising APIs Powering the Platform Economy in Financial Services What is SWIFT? And How Can We Help?
  13. 13. The Global Provider of Secure Financial Messaging Services Standardising APIs Powering the Platform Economy in Financial Services
  14. 14. SWIFT is the leader in secure, compliant and standardised global financial communications We are uniquely positioned to help the community overcome challenges and seize this opportunity Our Unique Expertise Unparalleled reach Extensive compliance expertise Exceptional security & reliability Unique expertise in data standards Standardising APIs Powering the Platform Economy in Financial Services
  15. 15. Standardising APIs Powering the Platform Economy in Financial Services Delivering the Building Blocks of the Platform Economy Identity framework Data controls Security & cyber defense Network connectivity Strong governance Reliability Scale Regulatory compliance Standardisation
  16. 16. 16 The SWIFT Ecosystem Service Providers 3rd Party APIs 3rd Party APIs 3rd Party APIs SWIFT APIs Global Banks Global Custodians Consumer Merchants Third-party API aggregators Trade Platforms DLT platforms Securities Platforms Third-Party Service Providers Partners API Gateway Service Consumers Corporates Asset Managers FinTechs Financial Institutions Banks APIs APIs APIs APIs Standardising APIs Powering the Platform Economy in Financial Services
  17. 17. Standardising APIs Powering the Platform Economy in Financial Services Creating Standardised APIs Management Delivery process, lifecycle, analytics, versioning Modelling APIs SWIFT collaborative modeling tools and methodologies, powered by SwaggerHub Consuming API SWIFT’s API Gateway with consumption options Publishing APIs SWIFT Developer Portal with sandboxes and the API catalogue
  18. 18. Using SwaggerHub to Accelerate API Standardisation Standardising APIs Powering the Platform Economy in Financial Services
  19. 19. 19 Importance of API Standardisation Standardisation is the top API technology challenge teams want to see solved in the coming years https://smartbear.com/resources/ebooks/the-state-of-api-2019-report/State of API Survey Report 2019
  20. 20. 2020 Improve Developer Experience Enable Intelligent Standards Seamless Integrations Provide workspaces for collaboration and feedback within a single platform Enable and enforce design-first principles to improve API quality Enable integration into a wide range of API platforms and services What is SwaggerHub? Standardising APIs Powering the Platform Economy in Financial Services
  21. 21. Enforce design rules from the top down • Define design rules to be used across an organization • Resolve quality issues before reaching development • Give real-time feedback as definitions are written Create a library of reusable assets • Store pre-approved definitions • Teams create references • Updates are pushed down to other services Built on the industry standard for API definitions • OpenAPI Initiative is a collaboration of leaders in the industry • Industry wide support for OAS • Evolving standard is growing and adapting to the needs of API providers and consumers Asset Library API_1 API_3API_2 Design Guidelines ! ✔ ✔ SwaggerHub and API Standardisation Standardising APIs Powering the Platform Economy in Financial Services
  22. 22. Demo Proprietary & Confidential Standardising APIs Powering the Platform Economy in Financial Services
  23. 23. { }… Why SwaggerHub? A Single Source of Truth for API Development Swagger is the OpenAPI Specification Standardising APIs Powering the Platform Economy in Financial Services
  24. 24. Standardising APIs Powering the Platform Economy in Financial Services What are the Risks of Not Standardising? How is the SWIFT Community Helping?
  25. 25. Standardising APIs Powering the Platform Economy in Financial Services Risks of Not Standardising API Data and Business Models Increased client implementation cost Slower onboarding Decreased reach Losing out on existing business Decreased value proposition for APIs More complex architectures for interoperability Risk of misunderstanding
  26. 26. Standardising APIs Powering the Platform Economy in Financial Services How is Our Community Helping to Solve This? Using the ISO20022 financial messaging standard – defining both data models and business meaning Collaborating on OAS in SwaggerHub Extending open banking with valuable use cases Global securities use cases – settlement status, NAV Bank to corporate cash management use cases – payment initiation, balances, request to pay API design guidelines and best practices
  27. 27. Corporate-to-Bank 3rd Party API Use Case Payments: Account Balance Corporates API business solution benefits Community participants Standardised solution, scales globally with minimal friction Improved cash-flow forecasting and treasury management Reduced operational costs Flexible API, covers several use cases Standardising APIs Powering the Platform Economy in Financial Services Banks The issue: Corporate cash management is limited by low intraday account balance visibility The solution: Real-time balance inquiry Global, standardised API for easy adoption
  28. 28. Standardising APIs Powering the Platform Economy in Financial Services Modelling APIs Business process definition Conversion to API contract ISO 20022 Repository Standards Editor Business Process Editor JSON Schemas Open API Specification
  29. 29. Standardising APIs Powering the Platform Economy in Financial Services Risks Of Not Standardizing Identity / Security / Connectivity Increased client / provider implementation cost – many-to-many does not scale More onboardings required for providers / clients Decreased reach Decreased value proposition for APIs More complex architectures for interoperability Possibly weaker security
  30. 30. Standardising APIs Powering the Platform Economy in Financial Services How is Our Community Helping to Solve This? Leveraging the super-secure SWIFT network – now for APIs Shared gateways on SWIFTNet and public cloud 10,000 on-boarded and KYC’ed institutions – identity and ARM Securing APIs with a Public Key Infrastructure (PKI) Software Development Kits and server stubs C:>
  31. 31. Standardising APIs Powering the Platform Economy in Financial Services Risks of Not Standardizing API Management Increased cost of API Increased cost and risk to clients due to different delivery cycles Decreased assurance to clients Possibly API mismanagement due to inexperience Longer onboarding / decreased reach
  32. 32. Standardising APIs Powering the Platform Economy in Financial Services How is Our Community Helping to Solve This? A new way for working groups – productise in 3 months – align delivery cycles, version control Service provider technical assurance Vendor / partner management and assurance Business assurance, SLAs, benchmarking Shared developer portal and resources Analytics and insights
  33. 33. Standardising APIs Powering the Platform Economy in Financial Services What is the vision?
  34. 34. Future Standardised APIs > lower cost > more partners > more value exchanged Current Bilateral APIs > higher cost > fewer partners > less value exchanged Standardising APIs Powering the Platform Economy in Financial Services Current State and Future for Organisations – The Value Of Standardisation Me Partner API 1 API 2 Partner API 3 Partner API 1 Partner Partner Partner Partner Partner Partner Me API 1 Partner
  35. 35. Register at: developer.swift.comStandardising APIs Powering the Platform Economy in Financial Services
  36. 36. Next Steps… Standardising APIs Powering the Platform Economy in Financial Services
  37. 37. Thank You 37

Editor's Notes

  • SmartBear tools are synonymous with quality across the entire SDLC, from planning and design to testing and monitoring. We were founded in 2009 in Boston, Mass and have grown to over 11 global offices, encompassing North America, Europe, Asia, and Australia.

    Over 6 million developers, testers, and operations professionals from 20,000 plus companies, like Google, RBC, and Vineyard Vines, use our tools ever day to deliver bug free software.

    Our company of over 500 employees also provides 5 free tools for the community, including 2 wildly popular open source tools Swagger and SoapUI.
  • A fragmented environment: The agility and simplicity afforded by APIs means that anyone can develop and publish their own API specifications and update them whenever they wish – under such a model, fragmentation is inevitable.
     
    Inconsistent business specs: Differences between open banking regulatory specifications in different markets, leading to banks implementing their own interpretation of the local regulation, leading to a large number of APIs covering similar business functions.
     
    Varying identity and security frameworks: Many different identity solutions are applied inconsistently across different APIs, and often focus on domestic or regional solutions. This limits opportunities for common API frameworks across regions and requires international users to maintain addressing and identity solutions for each market.
     
    Lack of standardised data model: In any given marketplace or ecosystem, multiple organisations will expose external APIs that work with the same kinds of data, even though they offer different functionalities. Without a consistent end-to-end data model, the business value of data may be diminished through misinterpretation or truncation.
     
    Varying API capabilities between firms: Whilst some institutions have been first out of the blocks in leveraging the technology – trying to seize the initiative to be the first to offer new services to their customers – others have been slow to develop their API capabilities. For a API economy to flourish in financial services, all firms must have the ability to access, consumer and develop API-based services.


  • SWIFT is a global member-owned cooperative and the world’s leading provider of secure financial messaging services.

    We provide our community with a platform for messaging, standards for communicating and we offer products and services to facilitate access and integration; identification, analysis and regulatory compliance.

    SWIFT is a global member owned cooperative and the world’s leading provider of secure financial messaging services.
    We provide our community with a platform for messaging and standards for communicating, and we offer products and services to facilitate access and integration, identification, analysis and regulatory compliance.
    Our messaging platform, products and services connect more than 11,000 banking and securities organisations, market infrastructures and corporate customers in more than 200 countries and territories. While SWIFT does not hold funds or manage accounts on behalf of customers, we enable our global community of users to communicate securely, exchanging standardised financial messages in a reliable way, thereby supporting global and local financial flows, as well as trade and commerce all around the world.
    As their trusted provider, we relentlessly pursue operational excellence; we support our community in addressing cyber threats; and we continually seek ways to lower costs, reduce risks and eliminate operational inefficiencies. Our products and services support our community’s access and integration, business intelligence, reference data and financial crime compliance needs.
    SWIFT also brings the financial community together – at global, regional and local levels – to shape market practice, define standards and debate issues of mutual interest or concern.
  • This is an excellent slide-- Enabling the calling of Community APIs over the SWIFT API gateway
    Introducing the P-a-a-S Platform-as-a-Service concept: 99.999 reliability with global connectivity/reach + all community network value + community network effect value propositions
  • How do you bring collaborative products from ideation to publication and go-live? How do you manage them after, including analytics? How do you provide assurance in an ecosystem? (standardisation will not bring benefits if actual implementations don’t follow the standardised specs)
  • ×