Open Banking API: The 3rd Channel Fabrice Dantec, Head of Software Architecture and Open Banking teams - API/Open Banking Evangelist at Crédit Mutuel Arkéa

1. Open Banking
API : The 3rd Channel
Fabrice DANTEC
Arkéa
API/Open Banking evangelist
fabricedantec
@dantecf

2. A cooperative and mutualist group
France, Belgium & Europe
● Retail banking for individuals, professionals,
corporate and institutional market
● Bank & Insurance
● Digital : supporting innovative start-ups that
build tomorrow's banking services
● Specialist in payment
● White label banking services
Discover the Arkéa Group's strategy
in video: http://bit.ly/ArkeaStrategy
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3. 3

4. Mehdi Medjaoui
In an era where “software is eating the world,” treating
your APIs as products means that you need to consider
how your API-exposed service will be differentiated
versus other alternatives when potential consumers are
evaluating what to integrate into their IT systems or
business processes.
Interview from Matt McLarty / Mulesoft
(https://blogs.mulesoft.com/biz/api/continuous-api-management/)
“API is a Product”
The concept remains unclear for most banks
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5. The Bank before
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6. The 1st channel : branches & advisors
Icons by https://icones8.fr
Customers BankBranch
Checking
accounts
Saving
accounts
Loans
#1
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7. The 1st channel : branches & advisors
Icons by https://icones8.fr
Customers BankBranch
Checking
accounts
Saving
accounts
Loans
#1
Financial products built by
bankers...
...managed through expert
tools by advisors
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8. Remote Banking
8

9. Remote Banking

10. The 2nd channel : remote banking
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
#1
#2
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11. The 2nd channel : remote banking
A mean to access financial products
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
#1
#2
11
Financial products built by
bankers...
...managed through expert
tools by advisors...
...and optionally accessible by
customers for basic features

12. First disruption phase : Direct Banks
Customer centric and Web expert
Icons by https://icones8.fr
Customers Direct Bank
Checking
accounts
Saving
accounts
Trading
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13. First disruption phase : Direct Banks
Customer centric and Web expert
Icons by https://icones8.fr
Customers Direct Bank
Checking
accounts
Saving
accounts
Trading
13
Website built
by web expert
Focus on customer

14. Traditional VS Direct Bank
The Traditional way
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
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3
KPI
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Focus on
financial
products
Indicators allow
to measure the
performance
Advisor’s tools
evolve at financial
products’ pace
Customer’s accesses can
evolve at the same pace

15. Traditional VS Direct Bank
The Customer centric way
Icons by https://icones8.fr
Customers Direct Bank
Checking
accounts
Saving
accounts
Trading
KPI
KPI
15
Indicators allow to measure the
performance of the website and
to analyse the customer journey
The website continuously
evolves from this feedback

16. Traditional VS Direct Bank
Ways of working
Make Business and
IT teams work
together
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17. Adapt to compete
17

18. Adapt to compete
Move to the Customer centric way
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
18
Focus on customer
Provide a consistent
customer journey based on a
common set of APIs
Producers
Finance experts
Distributors
Digital experts

19. Second disruption phase : Fintechs & Neobanks
Split of the value chain
Traditional Bank
Direct Bank
Checking
accounts
Saving
accounts
Loans
Neo Bank
Customers
Bank
Fintech
Bank
Icons by https://icones8.fr 19
White
Label
White
Label

20. The 3rd channel : API
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
Partners
Developers
Others...
#1
#2
#3
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21. Branch & Expert tools Web sites & Apps Developer Portal & API
Added value
Human relation
Financial coaching
UX ⇒ Customer Experience UX ⇒ Developer Experience
Marketing Traditional Digital API & Developer Relation
Contracts Financial products Terms of use Terms of use & SLA
Service Desk Customer / Financial products Customer / Digital tools Developer / Use of API
Risk Internal fraud External fraud Splitted responsibilities
Authentication
& Authorization
Advisor Customer Partner & Customer consent
Impacts of the 3rd channel
#1 #2 #3
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22. The shift to the 3rd channel
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
Partners
Developers
Others...
ProducersDistributors
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23. The shift to the 3rd channel
“API First”
API design
Think resources
and hide system complexity
Swagger
Development of services
matching the API definition
(hide the architecture)
API publication and
authorization management
UX & Front design
(Customer & Advisor vision)
Backend development
to fit the expected user experience
Swagger generation from code
Front developers request the published “API”
(actually a Web Service)
Change
of mind
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24. The shift to the 3rd channel
API at each layer
Icons by https://icones8.fr
Customers Bank
Branch
Checking
accounts
Saving
accounts
Loans
Partners
Developers
Others...
ProducersDistributors
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25. To summarise
● Original channel
Used to focus on financial products delivery in branch
● The 2nd channel : shift to customer focus
Evolution of skills
Best-in-class banks master the User Experience
● The 3rd channel : customer focus + developer relation
This is not just about publishing APIs
One more time : evolution of skills
Best-in-class banks master the Developer Experience
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26. Thank you
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