apidays LIVE LONDON - How APIs are changing the fintech world by Chirine BenZaied - Bourgerie
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apidays LIVE LONDON - The Road to Embedded Finance, Banking and Insurance with APIs How APIs are changing the fintech world Chirine BenZaied - Bourgerie, Innovation Director at Finastra
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apidays LIVE LONDON - How APIs are changing the fintech world by Chirine BenZaied - Bourgerie
- 1. How APIs are changing the fintech world The Finastra transformation experience with FusionFabric.cloud
- 2. HOW APIS ARE CHANGING THE FINTECH WORLD Banking as a Service & Embedded Finance* Open Banking Retail&SMEBanking Brand BaaS service providers License Holder CorporateBanking&CapitalMarkets *11:FS Banking as a Service report
- 3. FROM OPEN BANKING TO BAAS AND EMBEDDED FINANCE Big-Techs launch Financial Services globally New business models emerging FinTechs unbundle the traditional Financial Institutions
- 4. HOW APIS ARE CHANGING THE FINTECH WORLD Banking as a Service & Embedded Finance* Open space, still to be explored! Open Banking Open Finance Retail&SMEBanking Brand BaaS service providers License Holder CorporateBanking&CapitalMarkets *11:FS Banking as a Service report ?
- 5. FusionCreator FusionOperate FusionStore Open Finance, the Finastra transformation experience with
- 6. Finastra FACTS % of FY18 Total Revenue Notes: 1 Headcount and office location count as at 31 May 2018 | 2 Based on FY18 IFRS 15 results | 3 Source: Bureau Van Dijk July 2016 | 4 Retention rate measured on a ‘dollar for dollar’ basis against operating maintenance revenue (RLF) and excludes impact of any migration deals INTERNATIONAL REACH 2 UNMATCHED SCALE AND STRENGTH ~94% retention rate4 8,500+ clients~$1.9bn revenue 2 FOOTPRINT 1 PRODUCT AND SERVICE OFFERINGS 10,700+ employees ~70 offices • US Retail Banking • International Retail Banking • Corporate Banking • Payments • Treasury and Capital Markets • Technology Enhanced Managed Services of the world’s top 100 banks by asset size3 90 Americas 56% MEA 7% Europe 29% APAC 8% $ Present in 130Countries DIVERSE, LOYAL CUSTOMER BASE November 2, 2020
- 7. OUR SOLUTIONS THE BROADEST AND DEEPEST RANGE ON THE MARKET November 2, 2020 Payments Risk Management Corporate Banking International Retail Banking US Community Markets • Structured Lending • Commercial Lending • Trade Finance • Supply Chain Finance • Cash Management • Omni-Channel Banking • Origination • Customer Relationship & Analytics • Personal Banking Products • Omni-Channel Banking • Origination • Customer Relationship & Analytics • Business Lending • Consumer and Mortgage Lending • Payment acquisition • Normalisation • Orchestration • Clearing • Payment Services • Processing 1 2 3 4 6 Treasury & Capital Markets • Treasury Management • Multi-asset Trading • Post-trade Processing • Prime Brokerage • Investment Management 5
- 8. 175M+ Retail Accounts 8% of Daily FX Trading 67% of Total Syndicated Loans of Daily Trade Finance6% of US Wire payments 27% of all U.S. Financial Institutions 4.0M loans in the US every year $70Bin US- originated mortgages annually 25% Facilitating Finastra Proprietary Information – Do Not Redistribute
- 9. FINTECHS FINASTRA DEVELOPERS FINANCIAL INSTITUTIONS UNIVERSITIES INDEPENDENT SOFTWARE VENDORS SYSTEM INTEGRATORS 3RD PARTIES RETAIL BANKING CORPORATE BANKING TREASURY & CAPITAL MARKETSLENDING PAYMENTS COLLABORATION PLATFORM Finastra Proprietary Information – Do Not Redistribute
- 10. A Complete Set of Capabilities for Innovation API Enables a Fintech or FI to use a banking service Example: Monotto, PFM SPI Enables an FI to use a Fintech service Example: Netguardians, Fraud Detection Event Enables a Fintech to subscribe to all broadcasts from a Bank Example: Fusion Credit Connect, Letter of Credit Data Share Enables a Bank to push big-data to a Data Lake for a Fintech Example: Vector Risk, Machine Learning Faster time to market, lower overall cost to integrate and create. Financial Institution Fintech Data Lake
- 12. 49 Corporate Banking 10 Payments 64 Corporate Banking 22 Payments TODAY JULY 2021 29 Community Markets 48 Community Markets 19 Retail International 32 Retail International BUSINESS SERVICES MOMENTUM 8 Treasury & Capital Markets 6 FFDC 19 Treasury & Capital Markets 11 FFDC 7 Invest 8 Invest
- 13. Some of our Apps and… and some of the Clients using them… Fusion Credit Connect Allied Bill Payment Robosave Fusion Mortgagebot POS Data Insights Fusion Analytics Predictive Engagement Platform Flybits Honeyfi Fusion Payment Insights RoamHR FinGoal Fusion CreditQuest Lender Insights
- 14. THE FINASTRA TRANSFORMATION EXPERIENCE EVOLUTION FROM BUILD TO BUY AND THEN TO COLLABORATION SolutionsPRODUCT Best of Breed SOLUTION Best of Breadth BANK AS A PLATFORM Collaboration DIY Bespoke MARKETPLACE Monetization Custom built infrastructure and software Concentrate on Core+ APIs Innovate through FinTechs & Eco-system e.g. Credit Connect, HubX, Netguardians Use of pre-integrated all-in-one solutions e.g. Connected Corporate Banking Build Buy Collaborate + Create new business models by connecting “buyer” and “seller” e.g. Fusion LenderComm Use of market leading isolated products e.g. Fusion Loan IQ, GPP, Kondor + Cross the chasm Cross the chasm
- 15. Key learnings Platforms are growth accelerators Open Finance is key for Corporate Banking & Capital Markets OPEN is the way forward in fintech 1 2 3
- 16. APIs Opening the Financial Services challenges to the world!
- 17. …and a life-changing experience! A global fintech hackathon… Nairobi, KENYAMequon, USA 78% Used FusionFabric.cloud 43% Used Machine Learning Hack To The Future 2019 1,080 hackers 38 countries 235 ideas 122 ideas published Casablanca, MOROCCOTunis, TUNISIA 22% Used data platform
- 18. | Global | Virtual | | High Innovation | Real Outcomes | Embrace technology -enabled change Hacking through COVID-19 Hacking systemic inequalities THEME 1 THEME 3 THEME 2 • Banking the unbanked/underbanked • Socially responsible investments & ESG • Building inclusive technology • Driving financial literacy • Establishing ecosystems beyond finance • Cross-business intelligence layers with AI • Reimagining transaction flows with DLT • Integrating physical & digital experiences • Digital, also behind the scenes • Embedded fintech, across industries • Finding new growth streams • Managing risk in a post-COVID world https://fintech.devpost.com/
Editor's Notes
- Open banking via PSD & global trends Banks opens services via secure APIs, consent mgt, etc to fintechs Replacing webscrapping Gain in sophistication with BaaS and embbeded finance 11:FS report Brand, service provider and license holder MODULARITY: from monolith to more granular architecture, service, agility, flexibility, etc. Let’s look at some examples
- Granularity in services that fintechs now provide replacing the traditional monolith Some BaaS service providers Bit techs players also entering the space, as brands or service providers – watch that space!
- Now this is very interesting, though I’m sure you’ve noticed this only on consumer space (+ some players operating/entering the SME space) 2nd D is verticals – corporate banking & capital markets here it’s just the beginning of « Open Finance », We’ll see more about it with the Finastra experience in that space Now the 4th quadrant???? Watch out this space! ;)
- Now let’s take a look at the Finastra experience!
- But first, do you know Finastra? Have you heard the name before? used to be software provider for FI – technolofy for finserv Now this is called « fintech », and we’re one of the largest in the world 10k people 8k clients $2bn revenue Global presence Serving almost all segments that a traditional bank would serve
- More on these segments: Retail US community mkt (10k credit unions and community banks) – consumer & SME banking & lending Retail row Corporate banking: commercial & syndicated loans trade finance, cash mgt Payments TCM: buy side (hedge fund, asset managers) and sell side (investment banks) Enterprise risk
- A data perspective to it (that illusitrates better the benefit in opening the systems with open apis: daily trade, daily fx, more dramatic global syndicated loans!
- So here is what we’ve done – started a couple of years ago opening the systems used by our customers, x these segments Enabling fintechs, startups and other innovators to access the APIs and connect their apps – dev portal Help them collaborate/GTM with banks - mktplace
- On the devportal side: - APIs enable 3rd party connectivity to our core solutions eg read and write information – so whether a financial institution or bank, you can access and leverage capabilities and services from our core solutions to enhance and accelerate your own innovations and application - A subset of API includes Service APIs - core agnostic APIs eg Libor Transition Calculator or IBAN Validation to enhance app functionality or extend a core service regardless of core product being used - SPIs (Service Provider Interface) are like a reverse API – enables an out-going request, eg NetGuardians relies on our Fraud Risk Analysis SPI to notify them of a Finastra transaction taking place - Event – enables push notifications/messages to the app developer of an event or update - Data Share – facilitates connections using data sets, access to synthetic or real data sets from Finastra solutions to enable data use-cases and data-share capabilities
- Interesting drill down by LoB
- LIVE NOW: We now have over 24 live apps available on the FusionStore, among those include many of our own apps such as: - Fusion Credit Connect – Links SalesForce to Fusion Credit Management Enterprise and Fusion LoanIQ with to provide a powerful data dashboard, supporting RM’s with actionable insights - Fusion Analytics – which aggregates account holder behaviors to help account managers identify opportunities for engagement and growth. The is also a growing number of Fintech apps on the store, the currently include ones like: Allied Bill Payment – which allows consumers to pay bills from thousands of companies within their banking app Robosave from Monotto – which is an analytics based automated savings tool Certified Fed is a US based credit union who is using Allied Bill Payment. Their CIO said it was the easiest integration in all his 20 years with the Credit Union – taking days rather than the usual months. APPS COMING SOON: But expect to see many more apps launching onto the FusionStore over the coming months – we are aiming for over 50 new apps this year, a couple to call out: Net Guardians – AI based fraud detection across multiple types of fraud in all areas of banking Active AI – AI based virtual assistant to provide insights and engagements for Corporate Banking users Kore.ai - Conversation AI chatbot app for basic banking transactions and customer queries Raise Partner – Portfolio optimization for investment management clients
- NOW how did we get there?? - But even before recent changes, the way Financial Institutions were approaching software was already changing… - Organizations of any size can now select the technology model that best suits their business, from building custom infrastructure and software through to differentiation and focus via buying products or connected solutions, through to a model based on collaboration using sandboxes, open APIs and third party capabilities.
- Key learnings for this journey: platforms are growth accelerators – we see that with Finastra, it’s a strategic move we’ve done a ocuple of years ago, and is still today the major transformation initiative we’re heavily investing in Corporate banking and TCM really require this open finance move to transform Key innovation blockers there SMExpertise – knowledge (fintech founder are older in that space!) Access to data OPEN finance will help address 2. and that will drive 1. Open is definitely the way forward in fintech, and though a couple f years ago, we’d still see a couple of reluctant players, today most banks/traditional players are open and collaborating with fintechs in different ways
- Now one last example on the power of OPEN!
- Hackathons!! At Finastra we run lots of these, here you see our Dec-19 global fintech hackathon (pre-COVID!!!) Open the industry data/APIs and challenges to the world – anyone can be a fintech innovator! 1000+ hackers, 38 countries, lots of ideas/projects, and great stories bringing together industry professionals & students
- And now, it’s time for our 2020 hackathon! Looking again to open some of the most urgent challenges of the world (where the fintech industry can play a key role) Building on the success of our 2019 hackathon, with 1000+ hackers from 38 countries, we’re delighted to announce #hacktothefuture 2020 and to invite you to get involved. This year, we go GLOBAL! We go 100% VIRTUAL! And we’re hacking for GOOD. Today there are 1.7 billion unbanked, an SME funding gap of over $5trn and 45 million student loan borrowers facing $1.56 trillion of debt in the US alone Hack to the Future 2020 is all about hacking for good – and we’ve got three major themes. Hacking systemic inequalities, such as removing bias from financial services, Embracing technology innovations that are transforming the financial services industry, like AI/ML, DLT, etc. and hacking through the pandemic, focusing on risk management and growth amid uncertainty.
- Its easy – simply visit www.FusionFabric.cloud, take a look at our API catalog and sign up for a free account to start developing and innovating today. (This would be a good time to switch over to show how easy it is to look at the API catalog and FusionStore on FusionFabric.cloud)