apidays LIVE Australia 2021 - Accelerating Digital September 15 & 16, 2021 The big rebundling in financial services: threats and opportunities of Banking-as-a-Service Matthias Biehl, API Strategist at Software AG

1. © 2021 Software AG. All rights reserved. For internal use only and for Software AG Partners.
Matthias Biehl, API Strategist
August 2021
The big re-bundling
in financial services

4. Aha!
It is a bundle.

5. New York
JULY
Australia
SEPTEMBER
Singapore
APRIL
Helsinki & North
MARCH
Paris
DECEMBER
London
OCTOBER
Jakarta
FEBRUARY
Hong Kong
AUGUST
JUNE
India
MAY
Check out our API Conferences here
50+ events since 2012, 14 countries, 2,000+ speakers, 50,000+ attendees,
300k+ online community
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6. Bundling

7. Bundling
Bundling
Assemble a package from pieces

8. Unbundling
Unbundeling
Take package apart

9. Rebundling
Rebundling
Build a new package

10. A cyclical process
Unbundling
(Re-)bundling

11. Unbundling and Rebundling with APIs
Unbundling
(Re-)bundling
APIs Digital product built by
integrating APIs

12. The Role of Bundling und Unbundling in Banking
Timeline with 3 Stages: Past, Present, Future
0 1 2
Past:
Banking as
we know it
Present:
Open
Banking
Future:
Banking as
a Service

13. Stage 0:
Banking as we know it
0 1 2

14. Banking as we know it
Mass Market Banking Offer
E
ffi
ciency & Mass Market
Current
account
Savings account
Stage 0:
Bundling
Trading
Account
Retirem.
Account
Mortgage
Credit
card

15. Stage 1:
OpenBanking
0 1 2

16. OpenBanking
Mass Market Banking Offer
Stage 1:
Unbundling
Current
account
Credit
card
Savings
account
Retirem.
Account
Mortgage
Trading
Account
APIs

17. USA
EU
UK
South Africa
Nigeria Kenya
Saudi Arabia
Bahrain
India
Australia
Japan
South Korea
Hong Kong
Malaysia
Singapore
Philippines
Taiwan
Israel
Turkey
Georgia
Ukraine
Canada
Chile
Brazil
Colombia
Mexico
Regulation-driven
Market-driven
Switzerland

18. Hong Kong
Introduction of OpenBanking in progress, Phases 3 & 4

19. Stage 2:
Banking as a Service
0 1 2

20. The Role of Bundling und Unbundling in Banking
Timeline with 3 Stages
0 1 2
Banking as
we know it
Open
Banking
Banking as
a Service
Unbundling
Rebundling
Bundling

21. Banking as a Service
Current
account
Credit
card
Savings
account
Retirem.
Account
Mortgage
Stage 2:
Rebundling
...
Trading
Account
APIs
Financial Services Industry
Other industries
Specialized Banking O
ff
ers

23. Airline loyalty app includes multibanking
More convenience for busy customer
Get overview of
fi
nances quicker in one app

24. Customer Centricity
Rebundeling creates more meaningful & personalized experiences for customers
Rebundeling is based on customer-centric thinking around many di erent customer personas

25. How many rebundling
opportunities are there?

26. ...
O
ff
ers
# Users
(Popularity)
Long Tail
Niche Markets
Mass Market

27. ...
# Apps
# Installs
(Popularity)
Mass market products are efficient
Bank
builds
Pareto Principle:
With 20% of the products
you can reach 80% of the
market.

28. Are niches profitable for banks?

29. ...
# Apps
# Installs
(Popularity)
Are niches profitable for banks?
Need to e
ffi
ciently cover a broad range of niches
Covering a
single niche
may not be
pro
fi
table

30. ...
# Apps
# Installs
(Popularity)
Efficiently using the long tail
Portal & Partnering Processes
Developers/Partners
build
Bank
builds

31. How does the
value chain look like?

32. Mass market
Bank
Bank's App
End User
End-User Data
at the Bank

33. Bank = API
Provider
API
Fintech = API
Consumer
App
End User
End-User Data
at the Bank
Long Tail

34. Rebundling changes competition

35. Competition - Before Rebundling
Banks
same industry, known, same
business model, address the mass
market
Mass market

36. Mass market
Other
Banks
New
Competition
"Lane Changers"
Long Tail
same industry from other industries
known unexpected
address mass market
create
personalized experiences
through rebundeling
same business model new business models
Competition - After Rebundling

37. Learn more about the technology
for rebundling in the workshop

39. New York
JULY
Australia
SEPTEMBER
Singapore
APRIL
Helsinki & North
MARCH
Paris
DECEMBER
London
OCTOBER
Jakarta
FEBRUARY
Hong Kong
AUGUST
JUNE
India
MAY
Check out our API Conferences here
50+ events since 2012, 14 countries, 2,000+ speakers, 50,000+ attendees,
300k+ online community
Want to talk at one of our conferences?
Apply to speak here