NEACH Innovating Payments 2018 Today we live in an "API economy" that promises to transform business processes and customer experience. Come to this session to explore how APIs are disrupting and driving innovation in financial services around the globe. Understand the benefits and unknowns of APIs and hear about practical examples of APIs in action. Learn what is happening right here in the U.S from effective API strategies to efforts by Afinis, a membership-based standards governance organization under the NACHA umbrella, and what you should take away to enable richer solutions and improved client experiences at your organization.

1. Capitalizing on the API Economy
INNOVATING PAYMENTS| November 14, 2018| Providence, RI

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Today’s Discussion…
› What is an API?
› Banking API Landscape
› U.S. API Standardization –
› Questions

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What is an API?
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An application program interface (API) is code that allows software
programs to communicate with each other.
It defines the correct way to write a program that requests services
from an operating system or other application.
Mobile Device
Web Apps
REQUEST
RESPONSE Data
Enterprise
RESPONSE
METHOD
PARAMETER

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What is an API?
4
Always on and
communicating real-time
e.g., corporate-to-bank or
bank-to-cloud ERP

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Examples of Popular APIs
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Most popular API. This APIs
enables companies to offer
an easier registration process
leveraging Facebook
account login in lieu of
creating another account.
Google Maps API has
become the de facto
standard for embedding
location maps.
The company pushed to have
users upload photos through
the Walgreens application to
a central API service that
could have them printed out
at a local store.

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Today’s Discussion…
3

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Different Types of APIs Leveraged by Banks
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Private APIs are closed to a single
organization that is leveraging
software to enable internal systems to
“talk” more efficiently
Partner APIs are opened to selected
partners based on bilateral
agreements
Source: IBM

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APIs in Banking
8
Weeks:
Credit Agricole
RBS
Credit Agricole were possibly the
first traditional bank to release a
public API offering. They have
accelerated their digital offers and
today have around 84 apps built
by 3rd party developers or Fintechs.
Royal Bank of Scotland’s (RBS’)
global transaction services
business is exploring collaboration
with a number of start-up
companies as a way of combining
its own services with the innovation
provided by smaller companies,
through API sharing.
Fidor Bank
Bradesco
Fidor is a truly digital banking which
has expanded the horizon of its
service through Open Banking. This
means customers can add in
precious metals, outside currencies,
peer to peer lending, P2P payments,
PFM and more into their experience.
Bradesco built a set of API’s to
integrate with Facebook. The app
allows customers to check their
bank balance and make
transactions from within Facebook.
This is a good example of the
potential of integrating with third
party applications.
BBVA
BBVA has launched a financial
API market to fuel innovative third
party businesses. The idea is to use
open APIs that enable third parties
to develop applications, services,
and products.
The Capital One DevExchange is a
repository for developer tools and
APIs to enable developers to use
the financial institution's software
building resources to create better
customer experiences. They are
initially offering three APIs, including
an API to provide two-factor
authentication
.
Capital One
Source: 2016 Accenture & NACHA

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API Initiatives Around the Globe
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Today’s Discussion…
3

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What is … A Background
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February
2017
In recognition of the increased interest and the role API
standardization can play in enhancing support of the
payments and business needs of the U.S. financial services
industry, NACHA formed the API Standardization Industry Group
(ASIG) in the spring of 2017.
September
2017
Identified top 3 categories of API use cases with 16 possible APIs
at ASIG’s initial meeting. Formed working groups which created
detailed Use Cases for each API and then used the detailed
Use Cases to score and prioritize the 16 APIs from which 2 initial
APIs were identified for MVP.
Minimal Viable Product (MVP)
› Simplest of top 5 APIs
› Only ACH fraud contact
Get Bank Contact
Information
› Like existing prenote
› Working with Payments Canada
to do Proof of Concept
Account Validation

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What is … A Background
12
February
2018
ASIG formally launched its open, online community –
www.asig.org. In conjunction with the launch of the online
community, ASIG also released its first two standardized APIs for
testing: Account Validation and Get Bank Contact Information.
August
2018
IFX merged with NACHA in order to accelerate and strengthen
the development of standardized APIs in support of the diverse
global financial services industry aligning the API development
priorities of NACHA’s ASIG and the IFX Open Banking APIs
Working Group.
Partnered with Google/Apigee to
Create Developer Portal
The portal is where developers:
› Register to access Afinis APIs (free)
› Discover and explore
documentation
› Upload Apps for Afinis sandbox
testing
› Learn and collaborate with other
developers

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What is
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September
2018
On-going identification, prioritization and development of
APIs…

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Afinis API Open Standards
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Afinis develops
implementable API
products for adoption
by the financial
services industry
YAML. JSON code, and SDK’s
Open API’s are
developed using
open source tools
• Jira/Conflunce
• Github
• Swagger 2.0
Open API’s are
developed using
ISO20022 message
definitions combined
with Afinis data
models

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Methodology
15
Afinis members
leverage the Agile
development method
following 12 week
sprint cycles
Afinis work teams
include business
analyst and design or
technical teams with
ad hoc groups formed
as needed
Outsourced resources
or consultants are also
retained if required

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Current Workstreams
16
Payment
Initiation
Transaction
Status
B2B
Interoperability
Afinis BMS data model and ISO20022 gap analysis
API product governance prioritization
Gap
Analysis

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Near-Term Schedule
› Complete current APIs under development
› B2B Interoperability Implementation – Complete B2B
proof of concept
› PI planning – January 23rd-24th,Washington D.C.,
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What Does it Mean for You?
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Today’s Discussion…
3

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Thank You – Questions? Let’s Connect…
Nasreen Quibria| Managing Director & Founder
nasreen.quibria@qinsights.net
(m) 617.388.6207
nasreenquibria
@nquibria