Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Prediction 2016 with Forrester Research: APIs take center stage for banking IT execs

1,476 views

Published on

Forrester predicts that significant digital shifts are coming to financial services in 2016, one of which is the increased focus on APIs. With the spread of apps and handheld devices, consumers increasingly expect to have services at their fingertips, in real time.

Published in: Technology

Prediction 2016 with Forrester Research: APIs take center stage for banking IT execs

  1. 1. © 2016 Forrester Research, Inc. Reproduction Prohibited 2 We work with business and technology leaders to develop customer-obsessed strategies that drive growth.
  2. 2. Banking On APIs How Financial Providers Are Approaching APIs To Enable Digital Business Transformation Peter Wannemacher, Sr. Analyst February 10, 2016
  3. 3. © 2016 Forrester Research, Inc. Reproduction Prohibited 4 Agenda › Five questions financial services executives ask about APIs › Six predictions about digital financial services in 2016 › Seven takeaways & recommendations for FIs, disruptors, and their partners
  4. 4. © 2016 Forrester Research, Inc. Reproduction Prohibited 5 Agenda › Five questions financial services executives ask about APIs › Six predictions about digital financial services in 2016 › Seven takeaways & recommendations for FIs, disruptors, and their partners
  5. 5. © 2016 Forrester Research, Inc. Reproduction Prohibited 6 Five most common questions about APIs 1. What are other firms using APIs for? 2. How are APIs better than alternatives? 3. What should my API strategy be? 4. Why can’t we just build everything in house? 5. How long should we spend evaluating various vendors and APIs before committing to one?
  6. 6. © 2016 Forrester Research, Inc. Reproduction Prohibited 7 Four types of APIs
  7. 7. © 2016 Forrester Research, Inc. Reproduction Prohibited 8 PayPal is uses internal APIs Source: Craft Conference 2015: Evolution of the PayPal API: Platform & Culture
  8. 8. © 2016 Forrester Research, Inc. Reproduction Prohibited 9 Xignite sells APIs to FIs and other firms Source: Xignite
  9. 9. © 2016 Forrester Research, Inc. Reproduction Prohibited 10 BBVA and Mondo both use open APIs Sources: Forrester Case Study: BBVA; Mondo
  10. 10. © 2016 Forrester Research, Inc. Reproduction Prohibited 11 E*TRADE is looking to productize APIs Source: E*TRADE
  11. 11. APIs enable better (and faster) flexibility.
  12. 12. © 2016 Forrester Research, Inc. Reproduction Prohibited 13 New realities transform operating models Customer-aware Customer-led Data-rich Perfect Siloed Insights-driven Fast Connected
  13. 13. © 2016 Forrester Research, Inc. Reproduction Prohibited 14 APIs are a means to an end… Source: Forrester Research
  14. 14. © 2016 Forrester Research, Inc. Reproduction Prohibited 15 …yet they will be mission critical for FIs Source: Forrester Research
  15. 15. © 2016 Forrester Research, Inc. Reproduction Prohibited 16 APIs enable a faster, more agile approach
  16. 16. © 2016 Forrester Research, Inc. Reproduction Prohibited 17 Agenda › Five questions financial services executives ask about APIs › Six predictions about digital financial services in 2016 › Seven takeaways & recommendations for FIs, disruptors, and their partners
  17. 17. Prediction one: APIs will take center stage.
  18. 18. © 2016 Forrester Research, Inc. Reproduction Prohibited 19 Four types of APIs
  19. 19. © 2016 Forrester Research, Inc. Reproduction Prohibited 20 Ecosystems require dynamic collaboration
  20. 20. © 2016 Forrester Research, Inc. Reproduction Prohibited 21 BBVA is doubling down on APIs Sources: BBVA and Dwolla
  21. 21. Prediction two: The mobile mind shift will continue to reshape customers’ behaviors and expectations.
  22. 22. © 2016 Forrester Research, Inc. Reproduction Prohibited 23 How we define the mobile mind shift The expectation that I can get what I want in my immediate context and moments of need.
  23. 23. © 2016 Forrester Research, Inc. Reproduction Prohibited 24 Context will drive success in 2016 Context is everything you know about a customer or prospect at the point of engagement.
  24. 24. © 2016 Forrester Research, Inc. Reproduction Prohibited 25 Deconstructing the mobile mind shift Source: Forrester’s “The Mobile Mind Shift,” Groundswell Press, 2014 Companies Platforms People Processes Mind Devices Applications
  25. 25. A mobile moment is a point in time and space when someone pulls out a mobile device to get what he or she wants immediately, in context.
  26. 26. © 2016 Forrester Research, Inc. Reproduction Prohibited 27 Discover focused on a key mobile moment Source: Discover iPhone app
  27. 27. © 2016 Forrester Research, Inc. Reproduction Prohibited 28 Yet customers remain wary of mobile Source: Discover iPhone app
  28. 28. Prediction three: Cross-channel banking experiences (and expectations) will surge.
  29. 29. © 2016 Forrester Research, Inc. Reproduction Prohibited 30 How we define cross-channel Any instance in which a customer or prospect moves from one touchpoint to another when completing an objective.
  30. 30. © 2016 Forrester Research, Inc. Reproduction Prohibited 31 Cross-channel will have a major impact Among US online adults: Among Canadian online adults: *Cross-channel shopping is defined as researching a financial product via one touchpoint (e.g., phone, mobile app, branch, website) and applying for that financial product via any other touchpoint Source: Forrester’s North American Consumer Technographics Online Benchmark Survey (Part 2), 2015
  31. 31. Prediction four: Banks and disruptors will push into the shared finances market.
  32. 32. © 2016 Forrester Research, Inc. Reproduction Prohibited 33 How we define shared finances Any situation in which a person acts as an observer of, partner in, or proxy for another person’s finances.
  33. 33. © 2016 Forrester Research, Inc. Reproduction Prohibited 34 Technology is not the main driver Demographic shifts Economic forces Complex financial relationships, such as: • Elderly parents • Blended families • Dependent children • Multi-generation households • Pooled financial goals • Other situations
  34. 34. © 2016 Forrester Research, Inc. Reproduction Prohibited 35 Expectations will rise in the near future
  35. 35. Prediction five: Executives will move resources to back-end initiatives.
  36. 36. © 2016 Forrester Research, Inc. Reproduction Prohibited 37 Financial firms will re-engineer in 2016 Source: Forrester’s Mobile Banking Strategy playbook
  37. 37. © 2016 Forrester Research, Inc. Reproduction Prohibited 38 This will be especially evident in mobile
  38. 38. Prediction six: Real-time will go prime time
  39. 39. © 2016 Forrester Research, Inc. Reproduction Prohibited 40 The move from batch to real-time begins Source: American Banker online poll
  40. 40. “Our first implementation of PFM was working on a batch process... If you want to provide effective and accurate hints to customers, you need real-time data.” -Head of eBusiness, large U.S. Bank
  41. 41. © 2016 Forrester Research, Inc. Reproduction Prohibited 42 BBVA partnered with Dwolla using an API Source: Forbes
  42. 42. © 2016 Forrester Research, Inc. Reproduction Prohibited 43 Agenda › Five questions financial services executives ask about APIs › Six predictions about digital financial services in 2016 › Seven takeaways & recommendations for FIs, disruptors, and their partners
  43. 43. © 2016 Forrester Research, Inc. Reproduction Prohibited 44 Takeaways & high-level recommendations 1. FI execs are increasing their use of APIs… 2. …but they’ll move slower than other industries 3. APIs are not a strategy unto themselves… 4. …but they are a crucial tool to enable digital transformation and ecosystem design in FS 5. Financial brands will feel immense pressure in mobile, cross-channel, and real-time data… 6. …but they cannot go it alone! 7. Success will require everyday collaboration
  44. 44. forrester.com Thank you Peter Wannemacher @p_wannemacher pwannemacher@forrester.com

×