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APIdays Helsinki 2019 - Open Banking: Is it just smoke and mirrors? with Janne Uggeldahl, Nordea
Janne Uggeldahl discusses common myths surrounding open banking, emphasizing that it is not merely about compliance and is actively engaging corporates and developers. The presentation highlights Nordea's achievements in open banking, including successful API implementations and high user involvement from the developer community. It challenges perceptions around the PSD2 license acquisition complexity and illustrates the ongoing evolution in banking services through collaboration and innovation.
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APIdays Helsinki 2019 - Open Banking: Is it just smoke and mirrors? with Janne Uggeldahl, Nordea
- 1. Janne Uggeldahl Head ofOpen Banking Support 4 June 2019 Is it just smoke and mirrors? Open Banking
- 2.
- 3. Myth 1# 3 @NordeaAPI@juggeldahl “PSD2 is here but nothing changed!”
- 4.
- 5. Confidential Competitive landscape 5 Fintechs Global banks Bigtechs Nordic banks
- 6. Confidential Amazon provides financialservices to increase the participation on its platform and disintermediates incumbents along the way 6
- 7. 7 @NordeaAPI @juggeldahl Myth#2 “Open Banking is only about compliance”
- 8. 88 @NordeaAPI @juggeldahl Instant Reporting Real-timeaccount information Corporate Payout Payment initiation Multibanking Aggregation service Upcoming Based on discussion held with our customers, we have a selection on interesting APIs Business Treasury FX Listed Rates Get fixed FX rates directly in your application or system and transact on those during pre-agreed periods FX Market Orders Execute FX spot, forward and swap trades automatically from your own system Finance API Consumer Finance integrated in your customer application Our first commercial APIs
- 9. Confidential Collaborate with partnerbanks in the Open Banking space 9 Create multibanking services for joint corporate customers Aggregate account information and initiate payments Offer premium API services on a common marketplace Extend geographical footprint through others digital channels Enable co-creation with third parties, corporates and Nordea units via Nordea’s developer community
- 10. Confidential 1010 Beyond banking Business platform Core banking Technical platform Cross-industry marketplace PSD2 compliancePremium API Market Banking as a platform Source: Gartner 2018 (July)
- 11. #Myth 3 11 @NordeaAPI@juggeldahl “Open Banking is ignoring corporates”
- 12. Confidential 12 Finnair co-creating withNordea Banking as a platform “From our perspective, it really simplified our role that we focused on the customer experience and Nordea provided all of the services behind the APIs.” Henrik Balk, Transformation & IT at Finnair
- 13.
- 14. Confidential 14 “As-is” state –card order in Finnair’s application 8 Steps with 3 redirects
- 15. Confidential 15 Tomorrow: Card orderin Finnair’s application 1 5 43 2
- 16.
- 17. Myth #4 17 @NordeaAPI@juggeldahl “But you forgot the developers!”
- 18.
- 19. Confidential Achievements so far 19 Nordea’s Open Banking initiative has been highly praised by the industry at large We have received three international awards during 2017 and 2018 Nordea’s Developer Portal is rated as the most developer friendly in the whole financial industry 3500+ developers have joined the portal Nordea is the frontrunner in the Nordics and released the first PSD2 APIs for production already at the end of 2017 With the release of the Instant Reporting API, Nordea is the first Nordic bank that delivers commercial Open Banking services for corporate customers
- 20. Confidential Achieve a highdegree of user involvement in the development process 20 3 months later Launch the API to the developers to be tested in the sandbox 1st launch Iteratively Get feedback from the 3500+ developers and iterate new releases Feedback 6 months later Launch the API to the buyers with connection to production data Savings Payments Liquidity Lending Risk management Capital rising Investments Trade 2nd launch Day 1 Announce to the developers that a new API is coming Teaser
- 21. Myth #5 21 @NordeaAPI@juggeldahl “Ahhh… But the PSD2 license is too painful to acquire!”
- 22. Confidential 22 True, but itgets even harder after that! AML? Consent & authorisation? GDPR? Audits??? Accountability? Compliance? But the PSD2 license is too painful to acquire!
- 23. 23 @NordeaAPI @juggeldahl 1.PSD2 is here but nothing changed 2. Open Banking is only about compliance 3. Open Banking is ignoring corporates 4. But you forgot the developers! 5. Ahhh… But the PSD2 license is too painful to acquire /
- 24. 24 Thank you! Questions? JanneUggeldahl @NordeaAPI @juggeldahl
Editor's Notes
- #6 Today, we see that the competitive landscape has become more complex than predicted with more players and increasing differentiation Fintechs have turned from competitive to colla-borative and the most active, like Tink, take the role as aggregators of bank accounts to serve banks and third parties Global banks are taking positions for the upcoming transforma-tion, with BBVA and Citi showing clear intents to become platform businesses Big techs implement financial services to attract producers and consumers to their busi-ness platforms and they represent real threats to the traditional banks Nordic banks have started a race for multi-banking with Danske in the lead in collaboration with Spiir and with DNB, Swedbank and OP coming up behind
- #13 Two weeks ago at the Cash & Treasury Management Conference in Copenhagen, Finnair presented how they have benefited from partnering with Nordea to co-create new solutions through Open Banking. Finnair have been partners with Nordea for a long time and 1-2 years ago they started a discussions with Nordea on how you they could use Nordea Open Banking services for different kinds of customer financing cases. The discussions resulted in deciding to use Open Banking APIs for the purpose of ordering a co-branded credit card. Finnair’s vison: “to be the best with new digital services for our customers and employees”
- #14 “API’s can help us transform and extend to other parts of the value chain”
- #15 Finnair loyalty customers want to use co-branded credit cards that help them earn Finnair plus points with their daily purchases However, the process of applying for a co-branded credit card is often very cumbersome The creation has required close collaboration between Finnair’s and Nordea’s
- #17 Next example is a customer/partner we have talked about before.
- #23 Capture and manage the consent and authorization of the customer in a transparent way. Manage the transferred payment and personal data in a secure way. Do not reinvent the wheel and pick industry proven methods off the shelf.. Define accountability because PSD2 does not require a contractual relationship between banks and TPPs. A FinTech acting as a TPP should guarantee an appropriate level of data security. Assess and set up the relevant AML processes and controls in the right spot of the PSD2 chain. Document the roles and responsibilities of all parties in the chain properly. Do not forget that the local regulator can audit you at any time…