SlideShare a Scribd company logo
www.FrankSchwabSpeaks.comSeptember 2018
APIs
Oil pumps of
the 21st century
API = Application Programming Interface
A browser is for a person the same as an API for a computer
{
“headline": “API“,
“description“: “In computer
programming, an
application programming
interface (API) is a set of
routines, protocols, and
tools for building software
applications. An API
expresses …“
}
www.FrankSchwabSpeaks.comSource: Wikipedia.com
The club of API billionaires
www.FrankSchwabSpeaks.com
= Efficiency
www.FrankSchwabSpeaks.com
What can be achieved with APIs?
Share price in USD
10
49
2012 2014
x5
Number of API calls in Billions per day
1.4
5.0
2012 2014
x3
www.FrankSchwabSpeaks.com
www.FrankSchwabSpeaks.com
Netflix supports more than 800 different devices
Source: Daniel Jacobson, Netflix Engineering Blog, 9th July 2012
Source: https://www.ebayinc.com/stories/news www.FrankSchwabSpeaks.com
API–driven partner business
800M new listings
4.2B USD GMV globally
Q1/2017
46B API calls 3rd party apps
106B internal API calls
362K Dev community
M & A
www.FrankSchwabSpeaks.com
Technically
Sales
What can be achieved with APIs?
www.FrankSchwabSpeaks.com
M&A costs reduced by 90%
-90%
Traditional
IT of a bank
API
Banking
Source: https://nordicapis.com, Mark Boyd www.FrankSchwabSpeaks.com
APIs make companies attractive
Facebook purchases Moves
Google buys Songza
Spotify grabs
The Echo Nest
Blue Ocean
www.FrankSchwabSpeaks.com
NETFLIX
153
PayPal
86
eBay
32
Commerzbank
11
Deutsche Bank
20
Market cap in Billion EUR, July 2018
Source: finanzen.net
Red Ocean
www.FrankSchwabSpeaks.com
API-driven Internet companies
have far outpaced banks
# Internet APIs
2000 2005 2018
>20,000
0
Exponential API Growth
www.FrankSchwabSpeaks.comSource: www.programmableweb.com
Source: www.programmableweb.com
In 2017, most
banking APIs
were released
Category # APIs
Data 256
Financial 249
Analytics 184
Payments 180
Messaging 125
Banking 117
Mobile 112
Cloud 109
eCommerce 104
Security 99
www.FrankSchwabSpeaks.com
221 Bn Transactions, Q1/2018
237 Mn Customers globally
13.1 Bn USD Revenues, 2017
511 Bn USD Profit, Q1/2018
www.FrankSchwabSpeaks.comSource: www.statista.com
Open API architecture allows PayPal a very
efficient partner concept
www.FrankSchwabSpeaks.comSource: https://developer.paypal.com
www.FrankSchwabSpeaks.comSource: www.programmableweb.com
www.FrankSchwabSpeaks.com
Traditional banks are behind
several years regarding the
maturity of their API
architectures
An „API Business model“ engages developers – in an open
innovation approach – in order to win more users and customers
Services
Identification of
business processes
APIs
Commercial access to
business processes
Developer
Makes use of APIs to
build Apps
Apps
Access to business
processes via APIs
User / Customer
Increase of revenues
by higher usage via Apps
www.FrankSchwabSpeaks.com
Best Practice
2015 2014
Using APIs, Fidor Bank now integrates more than 20 partners directly into
the account
Examples:
Precious metals– Goldmoney
Social lending – SMAVA
Crowd lending - kapilendo
Foreign currencies– The Currency
Cloud
www.FrankSchwabSpeaks.com
www.FrankSchwabSpeaks.com
Integration costs reduced by 95%
-95%
Traditional
IT of banks
API
Banking IT
By its open API infrastructure Fidor created a globally unique service for E-Commerce
SMEs
Real time, also on the weekend:
immediate debit and credit if customers
have a Fidor Bank account
Easy data transfer
Flexible data import
For developers easy and fast to
integrate
www.FrankSchwabSpeaks.com
Fidor Bank sets a global standard for API documentation
and API community in the financial service industry
www.FrankSchwabSpeaks.com
Pure API Bank
www.FrankSchwabSpeaks.comSource: https://www.solarisbank.com/de/services/
Verivox
Hufsy
Qnips
www.FrankSchwabSpeaks.comSource: https://www.verivox.de/ratenkredit/heycash/
www.FrankSchwabSpeaks.comSource: https://www.Hufsy.com
95
www.FrankSchwabSpeaks.comSource: https://www.figo.io/en/figo-aggregator/
www.FrankSchwabSpeaks.comSource: https://www.figo.io/en/partner-use-cases/
PSD 2
Access to account
A successful state of the art API
implementation comprises 6 core elements
API Browser
Shows the available APIs
clearly
API Documentation
Describes the functionality
detailed & provides examples
API Manager
Internal API management,
access to business processes
App Store
Place of the apps of the
developers
SDK
Development tool for APIs
and to build Apps
API Community
Communication platform for
open exchange of developers
www.FrankSchwabSpeaks.com
# API Calls
internal
Strategic
partner
3rd Party Developer
www.FrankSchwabSpeaks.com
?
Objectives
Competition
Industry
API Business model
API Architecture
API Projects
www.FrankSchwabSpeaks.com
# API Calls
# API Partner
Revenue / API Call
Profit / API Call
www.FrankSchwabSpeaks.com
New KPIs
Success
=
1 % Talent +
99 % Hard Work
Frank@FrankSchwabSpeaks.com
John Musser, ProgrammableWeb, API Strategy Conference, 2013
https://www.programmableweb.com
https://www.ebayinc.com/stories/news/ebay-announces-new-and-updated-sell-and-buy-apis-to-help-
companies-grow-their-businesses/
Mark Boyd, http://platformable.com
https://nordicapis.com/3-ways-apis-create-value-and-5-acquisitions-that-prove-it
https://nordicapis.com
https://www.solarisbank.com
https://www.fidor.de
https://www.fidor.com
https://www.figo.io
https://www.bundesbank.de/Redaktion/DE/Standardartikel/Aufgaben/Unbarer_Zahlungsverkehr/der_rechtl
iche_rahmen.html
Relevant sources
www.FrankSchwabSpeaks.com
Source: John Musser, ProgrammableWeb, API Strategy Conference, 2013 www.FrankSchwabSpeaks.com
3rd party applications built on the
[eBay] Open Platform accounting for
$6.9 billion in Gross Merchandise
Volume (GMV)
Kumar Kandaswamy, May 31, 2012
60% of all tweets came from 3rd
party clients
Ryan Sarver, Chirp Conference, April 4, 2010
Partner business driven by APIs

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