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APIs - the oil pumps of the 21st century


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APIs pump data. And at traditional banks from the depths of their IT landscapes. APIs make the Internet machine-readable and often form the basis of successful e-commerce business models.

Twitter, Netflix, Google, Facebook and eBay are members of the club of API billionaires. From their partners and customers all of them have more than 1 billion API calls daily. That is the way they are significantly increasing advertising and sales reach - completely automated.

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APIs - the oil pumps of the 21st century

  1. 1. www.FrankSchwabSpeaks.comSeptember 2018 APIs Oil pumps of the 21st century
  2. 2. API = Application Programming Interface A browser is for a person the same as an API for a computer { “headline": “API“, “description“: “In computer programming, an application programming interface (API) is a set of routines, protocols, and tools for building software applications. An API expresses …“ } www.FrankSchwabSpeaks.comSource:
  3. 3. The club of API billionaires
  4. 4. = Efficiency What can be achieved with APIs?
  5. 5. Share price in USD 10 49 2012 2014 x5 Number of API calls in Billions per day 1.4 5.0 2012 2014 x3
  6. 6. Netflix supports more than 800 different devices Source: Daniel Jacobson, Netflix Engineering Blog, 9th July 2012
  7. 7. Source: API–driven partner business 800M new listings 4.2B USD GMV globally Q1/2017 46B API calls 3rd party apps 106B internal API calls 362K Dev community
  8. 8. M & A Technically Sales What can be achieved with APIs?
  9. 9. M&A costs reduced by 90% -90% Traditional IT of a bank API Banking
  10. 10. Source:, Mark Boyd APIs make companies attractive Facebook purchases Moves Google buys Songza Spotify grabs The Echo Nest
  11. 11. Blue Ocean NETFLIX 153 PayPal 86 eBay 32 Commerzbank 11 Deutsche Bank 20 Market cap in Billion EUR, July 2018 Source: Red Ocean
  12. 12. API-driven Internet companies have far outpaced banks
  13. 13. # Internet APIs 2000 2005 2018 >20,000 0 Exponential API Growth www.FrankSchwabSpeaks.comSource:
  14. 14. Source: In 2017, most banking APIs were released Category # APIs Data 256 Financial 249 Analytics 184 Payments 180 Messaging 125 Banking 117 Mobile 112 Cloud 109 eCommerce 104 Security 99
  15. 15. 221 Bn Transactions, Q1/2018 237 Mn Customers globally 13.1 Bn USD Revenues, 2017 511 Bn USD Profit, Q1/2018 www.FrankSchwabSpeaks.comSource:
  16. 16. Open API architecture allows PayPal a very efficient partner concept www.FrankSchwabSpeaks.comSource:
  17. 17. www.FrankSchwabSpeaks.comSource:
  18. 18. Traditional banks are behind several years regarding the maturity of their API architectures
  19. 19. An „API Business model“ engages developers – in an open innovation approach – in order to win more users and customers Services Identification of business processes APIs Commercial access to business processes Developer Makes use of APIs to build Apps Apps Access to business processes via APIs User / Customer Increase of revenues by higher usage via Apps
  20. 20. Best Practice
  21. 21. 2015 2014
  22. 22. Using APIs, Fidor Bank now integrates more than 20 partners directly into the account Examples: Precious metals– Goldmoney Social lending – SMAVA Crowd lending - kapilendo Foreign currencies– The Currency Cloud
  23. 23. Integration costs reduced by 95% -95% Traditional IT of banks API Banking IT
  24. 24. By its open API infrastructure Fidor created a globally unique service for E-Commerce SMEs Real time, also on the weekend: immediate debit and credit if customers have a Fidor Bank account Easy data transfer Flexible data import For developers easy and fast to integrate
  25. 25. Fidor Bank sets a global standard for API documentation and API community in the financial service industry
  26. 26. Pure API Bank
  27. 27. www.FrankSchwabSpeaks.comSource: Verivox Hufsy Qnips
  28. 28. www.FrankSchwabSpeaks.comSource:
  29. 29. www.FrankSchwabSpeaks.comSource:
  30. 30. 95
  31. 31. www.FrankSchwabSpeaks.comSource:
  32. 32. www.FrankSchwabSpeaks.comSource:
  33. 33. PSD 2 Access to account
  34. 34. A successful state of the art API implementation comprises 6 core elements API Browser Shows the available APIs clearly API Documentation Describes the functionality detailed & provides examples API Manager Internal API management, access to business processes App Store Place of the apps of the developers SDK Development tool for APIs and to build Apps API Community Communication platform for open exchange of developers
  35. 35. # API Calls internal Strategic partner 3rd Party Developer
  36. 36. ? Objectives Competition Industry API Business model API Architecture API Projects
  37. 37. # API Calls # API Partner Revenue / API Call Profit / API Call New KPIs
  38. 38. Success = 1 % Talent + 99 % Hard Work
  39. 39.
  40. 40. John Musser, ProgrammableWeb, API Strategy Conference, 2013 companies-grow-their-businesses/ Mark Boyd, iche_rahmen.html Relevant sources
  41. 41. Source: John Musser, ProgrammableWeb, API Strategy Conference, 2013 3rd party applications built on the [eBay] Open Platform accounting for $6.9 billion in Gross Merchandise Volume (GMV) Kumar Kandaswamy, May 31, 2012 60% of all tweets came from 3rd party clients Ryan Sarver, Chirp Conference, April 4, 2010 Partner business driven by APIs