apidays LIVE London 2021 - Reaching Maximum Potential in Banking & Insurance with API Mindset October 27 & 28, 2021 Banking APIs and Fintech Ecosystems Productization of APIs Jay Dembani, Sr. Product Manager at Avalara

1. Productization of APIs
Jay Dembani
Sr. Product Manager,
Platform & Integrations, Avalara

2. • API-as-a-Product
• Building an API Product Mindset
• API Product
• Metrics/KPIs
• Drivers & Enablers
• Monetization/Pricing Strategies
• Business Models
• Summary
Agenda

3. Jay Dembani
• I am a Product Management Professional with 16+
Years of Experience in Enterprise Product
Management, Product Implementation & Business
Analysis.
• At Avalara, I manage a portfolio of platform
integration products called Connectors &
Extractors.

4. Product: A product is anything that can be offered to a market for attention, acquisition, use or consumption.
A product is anything (tangible/intangible) that can be offered to a market for attention, acquisition (business
goal/ revenue generation), use or consumption (benefit).”
API-as-a-Product
API Product : A digital product (as a Service) enabling machine to machine interaction, designed with outside-In
approach targeting the needs of an application developer.
An API Product is a tactic for implementing your business strategy and a tool to create a business value.
API : APIs are specifications or protocols for how to exchange information or request online services from an
organization or a system or a product.
APIs are connective tissue between different applications and enabling the identification and authentication of a user
and subsequently transfer of data between them.

5. New York
JULY
Australia
SEPTEMBER
Singapore
APRIL
Helsinki & North
MARCH
Paris
DECEMBER
London
OCTOBER
Jakarta
FEBRUARY
Hong Kong
AUGUST
JUNE
India
MAY
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6. API Products use case
API

7. API Products use case

8. API Products use case

9. Building an API with Product Mindset
• Business Objective (Goals -> Vision)
• Outside-In Approach (User/Customer Focus)
• Minimum Viable Product (MVP)
• Iterative Approach (Scale)

10. Business Objective : Core reason to create an API to begin with.
Building an API Product Mindset
Vision Business purpose End objective
Problem to be solved Business opportunity
Success Criterion

11. Outside-in Approach with focus on end user
Building an API with Product Mindset

12. Minimum Viable Product (MVP)
Building an API with Product Mindset

13. Private, Partner & Public APIs
Building an API with Product Mindset

14. Building an API with Product Mindset

15. Building an API with Product Mindset

16. Iterative Approach
Building an API with Product Mindset
Design
Develop
Document
Secure
Market
Analyze
API

17. API Product KPIs
Metrics: Track -> Measure -> Improve
Execution
• Effectiveness
• [No. of APIs]
• Performance
• [Requests, Responses, Actions
Uptime, Downtime, Failure Rate]
Adoption
• No. of Apps
• No. of Customers
• No. of Partners
• Net Promoter Score (NPS)
Business
• Revenue
• Customers
• Retention (NPS)
• Support Tickets

18. API Product
Drivers
• Friction less ecosystem
• Speed to Market
• Customer Experience
Enablers
• Developer Community
• Platform and Tooling
• Availability & Accessibility
Drivers and Enablers

20. Indirect
• Provision of APIs free of
charge to gain analytical
insights or enhance market
presence.
• ATM Finder, FX Rates
Transactional
• APIs capture revenue
through direct usage. API
producers charge API
consumers for the number
of times an API is accessed,
or “called.” Freemium, Tier
based pricing.
• KYC, Credit Score
Product
• APIs can also be monetized
through delivery of products
or bundles of services.
Monetization is based on
fixed fees, revenue share or
value added to a business
transaction.
• Deposit Solutions
Monetization Strategy
API Product Pricing

21. Direct
Consumption
Develops API & offer
directly to consumers
Examples: ATM Finder,
FX Rates, KYC
Marketplaces
Mapping producer’s
services to consumers
via api
Examples: Zinsmarkt,
FD products at better
interest rates from
other European Banks
Enabling
Ecosystem
APIs to generate sales
through partners or
third parties
Examples: RBL Bank
Virtual Account API,
Collection Alert API,
Payment API
Business Models
API Product Business Models

22. Digital Platforms – Banks to sell insights to third parties to enrich and supplement customer experiences through
bank’s Open API platform
Data Monetization – Aggregated Customer Personas & Target Offers
Transaction Account Services – KYC, Bill Payments, Forex, Financial Advisory
Marketplaces – Bank-owned or external marketplaces allowing consumers to source products from a broader
ecosystem
Own Marketplace – Internal and Third-Party Financial Products and Value-added services
External Marketplace – Product Comparison, Upsell/Cross Sell, Customer Onboarding
Anything as Service – Banks to offer internal technology, resources & capabilities as a service to the ecosystem
Core Banking and Extended Services
Cross Industrial Partnerships – Building new forms of strategic partnerships beyond banking to enrich bank’s data
and deliver new service offerings.
Spend Analytics, Lending, Buy Now Pay Later (BNPL)
Commercialization
API Product Opportunity in BFSI

23. Develop the business use case
Identify potential sources of API value
Identify & prioritize the value – via Customer Journeys
Start small, but design for scalability
Drive usage and adoption to gain scale
Manage partner network & monetization actively
Summary

24. Thank You

25. 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