apidays LIVE Hong Kong - The Open API Economy: Finance-as-a-Service & API Ecosystems Fast Track the Open Banking Ecosystem with Platform Business Model Garry Sien, Principal Advisory Consultant at Alibaba Cloud International

1. Fast track the open banking ecosystem with
platform business model
October 2020

2. Reflection: Are you ready for the fast lane?
1 Does the bank have a mobile-first distribution model?
2 Is the bank eradicating back-office manual work through intelligent operations?
3 Is the bank embracing Open Banking?
4 Is the bank willing to push the boundaries of its business model?
5 Has the bank become a truly data-driven organization?
6 Has the bank committed to cloud as its default infrastructure?
7 Does the bank understand that true enterprise agility is a team sport?
8 Does the bank’s business strategy emphasize innovation in the core?
9 Does the bank have a disciplined fintech engagement model?
10 Does the bank have a culture and HR approach that values technology and engineering skills?
Reference: Accenture Report - Ten key questions to assess digital maturity

3. Platform Business Model - Alibaba Digital Economy
IoT
Device
RETAIL & WHOLESALE
CONSUMER
SERVICES
DIGITAL MEDIA &
ENTERTAINMENT
LOGISTICS INFRASTRUCTURE DIGITAL MEDIA AND
ENTERTAINMENT
MARKETING SERVICES & DATA MANAGEMENT PLATFORM
PAYMENT & FINANCIAL SERVICES INFRASTRUCTURE
MOBILE DIGITAL MAP, NAVIGATION & REAL-TIME TRAFFIC
INFORMATION PROVIDER
CLOUD COMPUTING, ARTIFICAL INTELLIGENCE AND BIG DATA
Online
Integration
Offline
Digitization
+
Content
Community
Infrastructure
DataTechnology
Consumer
Online Sales
and Distributor
Brand
Building
Channel
Management
Data Driven
innovation
Logistics and supply
chain management
Fintech Service
Cloud Intelligence
+ Data Technology
Intelligence
Manufacture
User
Operation
Digital
marketing
Data Middle
Office
Business
Middle Office
Data
Centers
Network
Service
Proprietary
Servers
Storage
Services
Self-Dev Chips
Computational
System Apsara
Infrastructure
DataTechnology

4. Source: fintechnews.sg, “Who Will Be the Ultimate Winner of Asia Pacific’s Virtual Banking Race?”
The virtual/neo banks are changing the banking landscape,
where does Open Banking fit?
2000
•Japan
2015
•China
2016
•Australia
2018
•Korea
2019 /
2020
•Hong Kong
2020 /
2021
•Singapore /
Philippines /
Malaysia?
New circular on the
establishment of digital
banks by 2020
PHILIPPINES

5. Virtual and Open Banking Ecosystem – Can Banks ignore?
Reference: Basel Committee on Banking Supervision Report
on open banking and application programming interfaces

6. Virtual and Open Banking Ecosystem – Can Banks ignore?
Reference: Basel Committee on Banking Supervision Report
on open banking and application programming interfaces

7. Potential Benefits of Sharing Data
Reference: World Economic Forum in collaboration with Deloitte, “The Next Generation of Data-Sharing in Financial Services: Using Privacy Enhancing Techniques to Unlock New Value”, Sep 2019
Data Sharing across Enterprise – Benefits and Drawbacks

8. Open APIs Framework – Where are the opportunities?
A Hong Kong reference
KYC /
Authentication
As-a-Service
Financial
Transactions
from
3rd party
Platforms
E-commerce
Payments
Personalized
Offers
Account
Sweeping and
Micro Savings
Social Banking
Product
Comparison
Services –
Financial /
Non-Financial
Products
Portfolio Advisor
Personal
Financial
Manager
Enhanced Credit
Profiles
Risk / credit
profiling
SME lending Single platform for
payment
Invoice and
Transaction
Reconciliation
Service
SME Financial &
Cash
Management

9. Platform business strategy and open banking magnifies the
direct and indirect benefits
Open API Strategy = Platform Business Strategy?

10. The technology is not new, what's changed?
Digital Onboarding and
Servicing
Agility at the Core Trusted Data Driven
Decisioning
1
2
3
4
1
4
3
Technology
focus
2
Channel Open Platform
Core Fintech Technologies
Data Integration Platform
Financial
Model Data
Real-time
Decision
Loans
Lenders
Lenders
Bank
Bank
Bank
Blockchain
Trusted
Platform
Secure and Stable
Foundation
3
Account Finance Data Tech
Credit
Wealth
Open Banking and Fintech Ecosystem Operators
External Trusted Data SourceInternal Data Source
Kiosk

11. Technology readiness to collaboration with ecosystem partners
is becoming top of mind for financial institutions
Reference: Temenos Benchmark, McKinsey & Company

12. Together with a disciplined fintech engagement strategy, Platform
business model will continue to fuel the thriving Open Banking Ecosystem
Reference: CB Insights Fintech 250, 2020
OPEN BANKING TSPs?

13. Fintech? Or Platform companies? Or Both?
Reference: Dealroom.co

14. Platform Business Model + Open Banking Ecosystem
= Endless opportunities
“According to a McKinsey research report, more than 30% of the global economic activity could be mediated by
digital platforms. Currently, only 3% of established companies have adopted an effective platform strategy.”
Reference: Centre for Finance, Technology and Entrepreneurship

15. Thank you