apidays LIVE LONDON - The Road to Embedded Finance, Banking and Insurance with APIs Open Banking from incumbent bank point of view - successes models and also failures Martin Medek, Head of Open Banking at Česká spořitelna, a.s

1. NÁZEV PREZENTACE
Jméno Přednášejícího
Open Banking from incumbent bank point of
view - successes models and also failures
Martin Medek
Head of Open Banking

2. Ceska Sporitelna, CZ Subsidy of the Erste Group
Founded in 1819 as the first Austrian savings bank, Erste Group went public in 1997 with a strategy to expand its retail business into
Central and Eastern Europe (CEE). Since then Erste Group has grown through numerous acquisitions and organic growth to one of
the largest financial services providers in the Eastern part of EU in terms of clients (16.2 million) and total assets (236,792 million
EUR).

3. Discovering the Open Banking environment

4. Anatomy of Money:
Value created for benefit of
others
Design of Success:
Fundamentals of how we
define and perceive value are
changing
But why to be pioneers in the Open Banking?
Psychology of Money:
How people think about
money in context of their
needs and joy
Generating and Measuring New Forms of Value

5. NÁZEV PREZENTACE
Jméno Přednášejícího
ECOSYSTEM

6. NÁZEV PREZENTACE
Jméno Přednášejícího
ECOSYSTEM

7. REST API allowing consumers to connect to different banks.
- API allowing consumers to connect to different banks and work with their PSD2 PIS & AIS services
- Connected to 9 CZ banks and 4 SK banks, more to come
- The Platform is an enabler to reach the whole banking market in terms of PSD2 PIS & AIS,
providing use cases as:
PSD2 API Aggregation Platform – strong internal capability
PIS: online payments
in e-commerce
AIS: Digital
onboarding into bank
products
AIS: Real time
transaction data
analysis
Not successful. Third
banks enrollment
process conversion
vary from 5% to 75%
50% of all digital
loans to customers
through PSD2 data
Multiple integration
inside and outside of
the bank. Business
model is based on
subscription for the
specific service, not
on API calls

8. NÁZEV PREZENTACE
Jméno Přednášejícího
ECOSYSTEM

9. There is more than PSD2…
Use case:
- An open platform for all the banks in CZ to share digital banking identity for both eGovernment and private
sector
- Enabler for end clients: wherever you are and without waiting, you will manage your agenda with bureaus,
apply for new ID card and documents, file a tax return, and also make a business contract, while:
- You do not have to learn anything new
- You do not have to buy any new device or download a new app
- And for end users it will not cost you a penny
This is how CZ bank clients can use digital banking identity:
- Pilot (“KYC API”) already running from 2018
- Full roll out starting in 2021
Topic for 2021: Banking Identity as common tool for online authentication and electronic
signatures in the Czech Republic

10. The client gives
consent to his/her
bank
The client is redirected
to his/her bank and
uses internet banking
credentials for
authentication
Banking Identitiy: simple example
A third party
A partner needs a client
identity validation in an
online onboarding/sales
process
The client is redirected
back to the partner
and his/her identity is
successfully verified
A third partyBank Bank

11. NÁZEV PREZENTACE
Jméno Přednášejícího
ECOSYSTEM

12. Being open = foster an ecosystem
We are a bank that has been around for more than 200 years.
We believe in proper entrepreneurship and value creation.
We have resources and knowledge.
We want to help the right kind of entrepreneurs to prosper.

13. Welcome to the era of long-game entrepreneurs
Long-game start-ups
1) What do you want to achieve?
Will your business still be here in 200 years? We are not looking for people who want to get rich because it’s cool to
have a startup now. We are looking for people who have grit, willpower and humility to build a company that will be
here for decades and centuries.
2) What value do you create for people?
Why will your product be relevant to people? We are not looking for a cool tech gadget or a marketing hack. We are
looking for an idea that brings value to real people and answers their problem tangibly.
3) How will you get to customer-funded
growth?
How will you make money in year 2? We don’t want to see an 800% growth plan in excel. We want to see bold but
honest thinking rooted in reality and proven by real market.
4) What skills are you lacking?
Who and what do you need to make it in the long run? We don’t believe in superheroes. We want to see
founders who recognize their strengths and weaknesses and structure their teams and assets around it.

14. www.csas.cz
Grow something
that will last.
Seed support for startups.

15. NÁZEV PREZENTACE
Jméno Přednášejícího
ECOSYSTEM
Conclusion

16. Business: New business
models, new ecosystems
Conclusion: Open Banking in conext of gernetating new forms of
value
Technology: Bank resources
available for external users in
real time
Industry: PSD2 vs.
Partnership and ecosystem
Customer: Data liberalization,
disaggregation of financial
services, services in time and
place of need
2024:
New business models defined
Existing markets renovated
Today:
Business models extended
Market enhancement
20XY:
Business models connecting unrelated industries?
Old markets destroyed and new markets created?
?

17. NÁZEV PREZENTACE
Jméno Přednášejícího
Have a great day!