Regulations are pushing banks to adopt open banking and APIs to allow customers to access their data and services through third party applications. This will enable new experiences like aggregating all accounts in one place and real-time payments. Banks need to embrace open banking as an opportunity rather than a compliance issue by collaborating with fintechs and building APIs. This will help banks deliver better service and retain customers in the new digital ecosystem.
How Banking as a Service Will Keep Banks Digitally Relevant and GrowingCognizant
To contend with insurgent competitors, regulatory mandates and demanding consumer requirements, banks must embrace open APIs that enable them to plug-and-play in the digital business ecosystem and reinforce their value proposition amid escalating share-of-wallet challenges.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
BaaS-platforms and open APIs in fintech l bank-as-a-service.comVladislav Solodkiy
What is bank-as-a-service? And why it is so necessary for Asia-Pacific region? Download as pdf in English, Chinese, Korean and Japanese on www.bank-as-a-service.com. Read more on http://www.forbes.com/sites/vladislavsolodkiy/2016/08/03/what-asian-banks-can-learn-from-amazon-about-working-for-fintech/
Why Banks Must Become Smart Aggregators in the Financial Services Digital Eco...Cognizant
Financial institutions must embrace a partnership-driven approach to remain relevant amid fintech digital disruption, while evolving their capabilities to deliver against tomorrow’s market needs.
7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023SG Analytics
The Impact of COVID-19 on the BFSI Sector
When compared to only a few months of lockdown, life has changed drastically for many of us. One of the most extensive adjustments has been doing things online that we had previously done in person. This entails internet shopping, digital banking, and video conferencing for socializing and business meetings, among other things. Source - https://us.sganalytics.com/blog/top-bfsi-industry-trends/
How Banking as a Service Will Keep Banks Digitally Relevant and GrowingCognizant
To contend with insurgent competitors, regulatory mandates and demanding consumer requirements, banks must embrace open APIs that enable them to plug-and-play in the digital business ecosystem and reinforce their value proposition amid escalating share-of-wallet challenges.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
BaaS-platforms and open APIs in fintech l bank-as-a-service.comVladislav Solodkiy
What is bank-as-a-service? And why it is so necessary for Asia-Pacific region? Download as pdf in English, Chinese, Korean and Japanese on www.bank-as-a-service.com. Read more on http://www.forbes.com/sites/vladislavsolodkiy/2016/08/03/what-asian-banks-can-learn-from-amazon-about-working-for-fintech/
Why Banks Must Become Smart Aggregators in the Financial Services Digital Eco...Cognizant
Financial institutions must embrace a partnership-driven approach to remain relevant amid fintech digital disruption, while evolving their capabilities to deliver against tomorrow’s market needs.
7 Trends That BFSI Industry Cannot Ignore Anymore- Get Ready for 2023SG Analytics
The Impact of COVID-19 on the BFSI Sector
When compared to only a few months of lockdown, life has changed drastically for many of us. One of the most extensive adjustments has been doing things online that we had previously done in person. This entails internet shopping, digital banking, and video conferencing for socializing and business meetings, among other things. Source - https://us.sganalytics.com/blog/top-bfsi-industry-trends/
The demand for embedded finance is rising and Banking as a Service (BaaS) with APIs and strong risk and compliance capability is offering bundled service, generally white-labeled or cobranded services for non banks to serve their customers.
PaymentComponents is excited to have contributed to "The Future of Open Banking, beyond January 2018" by Pinsent Masons & Innovate Finance! Read more by the global leadership in Open Banking & PSD2.
"Create and Consume value" - BaaP - Developers can extend platform functionality using APIs, while the platform itself manages data exchange and oversees authentication, as well as ensuring compliance.
NayaOne is excited to release the first of our monthly industry insights reports, ‘NayaOne Insights' - designed to share actionable intelligence on industry collaboration, business transformation, and corporate innovation themes.
NayaOne Insights explores the strategic alliances and technology partnerships financial institutions and fintechs are embracing to launch and scale new products and reimagine traditional business models.
The Benefits and Challenges of Open Banking API for Fintech.pdfExpert App Devs
🔓 Embrace the Revolution: Exploring Open Banking APIs in Fintech! 💼💡
Dive deep into the world of possibilities and hurdles as we ride the wave of Open Banking APIs in fintech. 🌊💸 Join the conversation now!
Traditional Banks, Credit Unions Compete Against Digital-Only BanksFlavia_McCain
The entire banking industry continues to shift to digital channels. This poses more threats to the dominant traditional banks and credit unions. As technology improves, banks providers expect a new breed of solutions that beat the conventional model through innovative products and services to suit the liking of digitally-savvy consumers.
Api testing for open banking operationsZoe Gilbert
Know how Open banking operations moved from a closed model to an open model environment, and enhance the banking experience through the API transformations.
And the reasons why and how open banking operations are becoming popular globally.
The Emergence of Open Banking and COVID-19Sam Ghosh
Think about Google if it were only collecting a lot of data but never used or shared that data with anyone. That is how the traditional financial service companies are - they have enormous amounts of data but rarely use that data for any tangible purpose. Dormant data with the financial service providers can be used to not only create new applications but revolutionize credit markets, personal finance, business finance, wealth management, etc. in ways we cannot even totally envisage now.
Open Banking is a practice where banks provide access to consumer data to non-affiliated third parties generally through Application Programming Interfaces or APIs. Open Banking in the coming years is expected to lead a paradigm shift in Banking and Finance.
During the pandemic, the demand side of the equation for Open Banking is rapidly developing with growth in fintech markets and the adoption of digital channels by the consumers.
Both banks and tech companies have immense incentives to grab this opportunity and quickly tap the growth in digital markets and channels.
Concerns about data security, compliance with privacy laws, and regulatory uncertainties are acting as impediments to the growth of Open Banking.
Banks need to act quickly to leverage data to increase their reach and role. Traditional banking is rapidly getting commoditized and banks need to add data-driven value-added services in their portfolio to remain relevant. Value-added services such as personal financial planning, the alternative credit assessment, and real-time payments can not only create new revenue sources for the banks but provide strategic moats in the competitive landscape. Banks can achieve this through strategic partnerships and acquisitions. In-house development is difficult given the cultural shift needed in the banking sector may take time. Apart from that, the IT in the banking sector is generally focussed on regulatory requirements and not data-driven, customer-focused as required for Open Banking initiatives.
Policy uncertainty can severely hamper the growth of Open Banking. Policymakers need to balance caution on security-privacy matters but at the same time clear policy confusion to allow the sector to grow.
As per the Akamai report, “2020 State of the Internet / Security: Financial Services – Hostile Takeover Attempts”, cyber attackers are increasingly targeting API endpoints of financial services.
As per a Gartner report, by 2021, APIs will account for 90% of the attack surface. By 2022, according to Gartner, API abuses will become the most-frequent attack vector.
This is a cause of concern for the Banks contemplating opening up data access using APIs.
Digital intervention is a reality in today’s banking business and banks need to adapt and respond to this change to stay ahead of competition. The digital foreground has presented banks with a huge opportunity to attract new customers, lower costs, develop new propositions and business models, as also explore customer value to its maximum. To create a digital environment is now a priority for all banks and they need to undergo considerable investment for complete transformation.
The CII-PwC report titled, Banks taking a quantum leap through digital, released at CII National BANKing TECH Summit by Mr H R Khan Dy Governor RBI, Mr A P Hota MD& CEO National Payments Corporation of India and M S RaghavanChairman & MD, IDBI Bank.
Accelerating the Open Banking API JourneySheriff Shitu
A review of what Open Banking APIs seem like in the eyes of banks. The article looks at the reality of inherent challenges of opening up data and internal capabilities (technical, compliance, and business), presents possible learnings available from other industries, and suggests a roadmap for adoption of Open APIs through an analysis of patterns spotted at banks that have completed the Open Banking API journey.
Linqto and western independent bankers launch new apps store for banksslpr2012
Community Banks Brand and Distribute High Demand Apps to Consumers. New Revenue Model for App Vendors. Community Banks can now compete with Big Banks and Win.
How would digital technology change the landscape of retail branch banking? Will the physical network disappear? Will robots replace human financial advisers? Will augmented reality become everyday life? This presentation looks at the value chain of branch banking and the relevance of five innovative technologies: Open API, artificial intelligence, RPA, augmented reality and blockchain.
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushKatia Bazzocchi
Pure mobile banks gain users daily, as they benefit from accessible smartphone technology. Millenials are the principal users of mobile banks, and will soon be followed by Generation Z. As consumer expectations continue to be shaped by new technology and innovative consumer affairs, a full mobile strategy is key for traditional banks to maintain market share.
apidays LIVE Singapore - Open Banking: A foundation for the new world by Bhar...apidays
apidays LIVE Singapore - Connected Commerce
Open Banking: A foundation for the new world
Bharat Bhushan, CTO - Banking and Financial Markets, EMEA, Technical Leadership Team, IBM Academy of Technology
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
The demand for embedded finance is rising and Banking as a Service (BaaS) with APIs and strong risk and compliance capability is offering bundled service, generally white-labeled or cobranded services for non banks to serve their customers.
PaymentComponents is excited to have contributed to "The Future of Open Banking, beyond January 2018" by Pinsent Masons & Innovate Finance! Read more by the global leadership in Open Banking & PSD2.
"Create and Consume value" - BaaP - Developers can extend platform functionality using APIs, while the platform itself manages data exchange and oversees authentication, as well as ensuring compliance.
NayaOne is excited to release the first of our monthly industry insights reports, ‘NayaOne Insights' - designed to share actionable intelligence on industry collaboration, business transformation, and corporate innovation themes.
NayaOne Insights explores the strategic alliances and technology partnerships financial institutions and fintechs are embracing to launch and scale new products and reimagine traditional business models.
The Benefits and Challenges of Open Banking API for Fintech.pdfExpert App Devs
🔓 Embrace the Revolution: Exploring Open Banking APIs in Fintech! 💼💡
Dive deep into the world of possibilities and hurdles as we ride the wave of Open Banking APIs in fintech. 🌊💸 Join the conversation now!
Traditional Banks, Credit Unions Compete Against Digital-Only BanksFlavia_McCain
The entire banking industry continues to shift to digital channels. This poses more threats to the dominant traditional banks and credit unions. As technology improves, banks providers expect a new breed of solutions that beat the conventional model through innovative products and services to suit the liking of digitally-savvy consumers.
Api testing for open banking operationsZoe Gilbert
Know how Open banking operations moved from a closed model to an open model environment, and enhance the banking experience through the API transformations.
And the reasons why and how open banking operations are becoming popular globally.
The Emergence of Open Banking and COVID-19Sam Ghosh
Think about Google if it were only collecting a lot of data but never used or shared that data with anyone. That is how the traditional financial service companies are - they have enormous amounts of data but rarely use that data for any tangible purpose. Dormant data with the financial service providers can be used to not only create new applications but revolutionize credit markets, personal finance, business finance, wealth management, etc. in ways we cannot even totally envisage now.
Open Banking is a practice where banks provide access to consumer data to non-affiliated third parties generally through Application Programming Interfaces or APIs. Open Banking in the coming years is expected to lead a paradigm shift in Banking and Finance.
During the pandemic, the demand side of the equation for Open Banking is rapidly developing with growth in fintech markets and the adoption of digital channels by the consumers.
Both banks and tech companies have immense incentives to grab this opportunity and quickly tap the growth in digital markets and channels.
Concerns about data security, compliance with privacy laws, and regulatory uncertainties are acting as impediments to the growth of Open Banking.
Banks need to act quickly to leverage data to increase their reach and role. Traditional banking is rapidly getting commoditized and banks need to add data-driven value-added services in their portfolio to remain relevant. Value-added services such as personal financial planning, the alternative credit assessment, and real-time payments can not only create new revenue sources for the banks but provide strategic moats in the competitive landscape. Banks can achieve this through strategic partnerships and acquisitions. In-house development is difficult given the cultural shift needed in the banking sector may take time. Apart from that, the IT in the banking sector is generally focussed on regulatory requirements and not data-driven, customer-focused as required for Open Banking initiatives.
Policy uncertainty can severely hamper the growth of Open Banking. Policymakers need to balance caution on security-privacy matters but at the same time clear policy confusion to allow the sector to grow.
As per the Akamai report, “2020 State of the Internet / Security: Financial Services – Hostile Takeover Attempts”, cyber attackers are increasingly targeting API endpoints of financial services.
As per a Gartner report, by 2021, APIs will account for 90% of the attack surface. By 2022, according to Gartner, API abuses will become the most-frequent attack vector.
This is a cause of concern for the Banks contemplating opening up data access using APIs.
Digital intervention is a reality in today’s banking business and banks need to adapt and respond to this change to stay ahead of competition. The digital foreground has presented banks with a huge opportunity to attract new customers, lower costs, develop new propositions and business models, as also explore customer value to its maximum. To create a digital environment is now a priority for all banks and they need to undergo considerable investment for complete transformation.
The CII-PwC report titled, Banks taking a quantum leap through digital, released at CII National BANKing TECH Summit by Mr H R Khan Dy Governor RBI, Mr A P Hota MD& CEO National Payments Corporation of India and M S RaghavanChairman & MD, IDBI Bank.
Accelerating the Open Banking API JourneySheriff Shitu
A review of what Open Banking APIs seem like in the eyes of banks. The article looks at the reality of inherent challenges of opening up data and internal capabilities (technical, compliance, and business), presents possible learnings available from other industries, and suggests a roadmap for adoption of Open APIs through an analysis of patterns spotted at banks that have completed the Open Banking API journey.
Linqto and western independent bankers launch new apps store for banksslpr2012
Community Banks Brand and Distribute High Demand Apps to Consumers. New Revenue Model for App Vendors. Community Banks can now compete with Big Banks and Win.
How would digital technology change the landscape of retail branch banking? Will the physical network disappear? Will robots replace human financial advisers? Will augmented reality become everyday life? This presentation looks at the value chain of branch banking and the relevance of five innovative technologies: Open API, artificial intelligence, RPA, augmented reality and blockchain.
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushKatia Bazzocchi
Pure mobile banks gain users daily, as they benefit from accessible smartphone technology. Millenials are the principal users of mobile banks, and will soon be followed by Generation Z. As consumer expectations continue to be shaped by new technology and innovative consumer affairs, a full mobile strategy is key for traditional banks to maintain market share.
apidays LIVE Singapore - Open Banking: A foundation for the new world by Bhar...apidays
apidays LIVE Singapore - Connected Commerce
Open Banking: A foundation for the new world
Bharat Bhushan, CTO - Banking and Financial Markets, EMEA, Technical Leadership Team, IBM Academy of Technology
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
As AI technology is pushing into IT I was wondering myself, as an “infrastructure container kubernetes guy”, how get this fancy AI technology get managed from an infrastructure operational view? Is it possible to apply our lovely cloud native principals as well? What benefit’s both technologies could bring to each other?
Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
"Impact of front-end architecture on development cost", Viktor TurskyiFwdays
I have heard many times that architecture is not important for the front-end. Also, many times I have seen how developers implement features on the front-end just following the standard rules for a framework and think that this is enough to successfully launch the project, and then the project fails. How to prevent this and what approach to choose? I have launched dozens of complex projects and during the talk we will analyze which approaches have worked for me and which have not.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
Keynote at DIGIT West Expo, Glasgow on 29 May 2024.
Cheryl Hung, ochery.com
Sr Director, Infrastructure Ecosystem, Arm.
The key trends across hardware, cloud and open-source; exploring how these areas are likely to mature and develop over the short and long-term, and then considering how organisations can position themselves to adapt and thrive.
Let's dive deeper into the world of ODC! Ricardo Alves (OutSystems) will join us to tell all about the new Data Fabric. After that, Sezen de Bruijn (OutSystems) will get into the details on how to best design a sturdy architecture within ODC.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
PHP Frameworks: I want to break free (IPC Berlin 2024)Ralf Eggert
In this presentation, we examine the challenges and limitations of relying too heavily on PHP frameworks in web development. We discuss the history of PHP and its frameworks to understand how this dependence has evolved. The focus will be on providing concrete tips and strategies to reduce reliance on these frameworks, based on real-world examples and practical considerations. The goal is to equip developers with the skills and knowledge to create more flexible and future-proof web applications. We'll explore the importance of maintaining autonomy in a rapidly changing tech landscape and how to make informed decisions in PHP development.
This talk is aimed at encouraging a more independent approach to using PHP frameworks, moving towards a more flexible and future-proof approach to PHP development.
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
Oracle-Financial-Services.pdf
1. A Point of View by Oracle Financial Services
How should banks prepare for the Open Banking Future?
Achieving a Head Start
in the API Economy
2. Open Banking stands to redefine banks’ relationship with
customers, in terms of how they engage with them, the services
they provide, as well as the channels through which they do so. With
Open Banking, customers will have more options to interact with
their bank, based on where they are at in the digital ecosystem.
Essentially, the bank becomes a platform, on which third-party
companies can build applications using the bank’s data. This
integrates banking deeply into the digital ecosystem, making banking
a seamless experience to the customer. Open banking will usher in
an “omnipresent” experience to customers, delivering services
on-the-go and fulfilling requests in real time.
The enabler for Open Banking is the application programming
interface (API). While APIs have been around for close to two
decades, they used to be proprietary – developed for specific
purposes within organizations and fully controlled by internal IT
departments. In recent years however, their proliferation through
standardization, in tandem with the rise of startup innovators and the
growth of cloud computing has spurred new entrants, who have
capitalized on this to eat into traditional revenue streams of banks,
starting with the payment space.
Point of view paper: Achieving a Head start in the API Economy 2
3. 3 Point of view paper: Achieving a Head Start in the API Economy
Non-banks are Leading the Charge in
The Shift to Open Banking
Financial Technology (FinTech)
companies specializing in specific
products or services are able to provide
them at significantly lower costs,
compared to corresponding bank
offerings.
Retailers or merchants such as Amazon
can become full-fledged PISPs,
removing the card networks from the
value chain, thereby reducing the total
costs to customers. They can also
retain the fees charged by banks.
Financial data aggregators such as
Mint.com, who currently aggregate
product information and offer budget
planning tools to customers, will look to
further extend their value proposition,
initiating payments directly.
Payment Service Providers (PSPs) such
as Visa, MasterCard, WorldPay etc. will
aim to become Payment Initiation
Service Providers (PISPs) and offer
payment schemes, becoming closer to
the PayPal model.
Technology companies such as Google,
Apple, Samsung, and Facebook, will
have further opportunities to expand
their service propositions in the open
API economy. Some of them are
already offering payment services
linked to customers’ debit and credit
cards.
Neo Banks such as Fidor and Mondo
are more open to collaborate with third
party developers to create more
customer-centric service experiences.
PSPs PISPs
FINTECH
4. In the open API economy, banks need to be
forthcoming about providing customer account
information, as well as access to systems to
third party developers, who can then build their
own interfaces for the banks’ customers. Banks
need to reconcile with the fact that customers in
the near future will be accessing transactions
and accounts through applications that were
not in fact set up by them.
Drivers
for
Change
Point of view paper: Achieving a Head start in the API Economy 4
We conducted a survey across 129 executives in the
Banking and Financial services, FinTech and Consulting
space, measuring the readiness of Open API adoption
and the key drivers for Open Banking.
Top Drivers for
Open API Adoption
40
47
21
Regulatory
Push
Real-time
Service
Experiences
Banking as a
Platform
38
45
24
Investing,Trading
& Brokerage,
Wealth Management
Improve
Customer
Experience
Payments, Loyalty,
e-Commerce
& Wallets
Top Areas where FIs are
Incorporating Open APIs
5. 5 Point of view paper: Achieving a Head Start in the API Economy
Regulatory developments
01
The tribe of progressive regulators who are changing regulations to
provide a level playing field between banks and FinTech innovators is
growing. Their aim is to drive innovation and better banking for customers.
There are currently a number of initiatives across the world mandating
banks to move to the open API economy. The following are two of the
more notable ones:
UK's Competitive and Markets Authority (CMA) is leading the change, and
has given the country's nine largest banks a year to develop and
adopt an Open Banking API interface for customer data sharing in a
final order, on February 2nd, 2017.
Alasdair Smith, chairman of the retail banking investigation, says: "Open
Banking will make a transformational change to banking for personal
customers and small businesses. For the first time innovative and secure
apps will provide personalised services and information to cover all
financial needs in one place, and make it easy for people to find out what
bank account is best for them."
The European Union’s second Payment Services Directive (PSD2) requires
banks to provide third party developers with access to accounts, payment
flows and customer data. This directive consists of two key parts – i)
payments and ii) data aggregation.
PSD2 will lead to increased competition, innovation and transparency
across the European payments market, as well as enhance the security of
internet payments and account access. It is hoped that PSD2 will create a
level playing field between banks and third party providers, ensuring that
banks are not left behind in a business that is core to them.
Singapore central bank leads the
way by embracing open APIs
“MAS has been encouraging financial industry
players to publish open APIs on their datasets, to
allow users to connect information and offer
innovative solutions. MAS is leading by example
through the launch of these 12 APIs. MAS will
progressively publish more datasets as APIs in the
coming months.
- Lawrence Ang, Executive Director
of Information Technology, MAS
“
6. The open API economy presents banks with huge opportunities to
drive innovation, by collaborating with third party innovators. Banks
will be able to deliver products and services that create new revenue
streams, and capture or retain customers. It will also facilitate
collaboration within the bank, across business units, as well as
between banks, and with other sectors of the economy.
Spanish bank BBVA is an early mover in making the jump to Open
Banking. Viewing APIs as critical to its future, BBVA has created an
API market for external developers. One of the conveniences they are
delivering to customers, enabled through APIs, is real-time payments,
even on weekends, instead of waiting two days or more for
processing at the automated clearing house, as is the current
industry norm. This was made possible through BBVA’s partnership
with FinTech company Dwolla.
The critical mindset shift that banks need to make is to treat APIs as
not just technology interfaces or compliance requirements but as
revenue generators in themselves. No doubt, FinTechs are disrupting
the industry and pose a threat to banks. However, it is critical that
banks treat FinTechs as part of their ecosystem. Such an approach
will help garner the innovative spirit of a broader group of people,
beyond the corporate walls of the bank. Ultimately, it is the bank’s
customers who will be the beneficiaries.
Harmonized and unified view of
all bank accounts, using a single
banking app
Easy comparison, providing for
the ability to choose the most
ideal banking product
More control over funds, allowing
customers to manage cashflows
better and avoid overdrafts
Demand for New Revenue
Streams
02
Where there was a branch previously, the open
API economy will usher in an omnipresent service
experience to customers, delivering services
on-the-go and fulfilling requests in real time.
Specifically, customers will have benefits such as:
Personalized financial advice
Point of view paper: Achieving a Head start in the API Economy 6
7. 7 Point of view paper: Achieving a Head Start in the API Economy
Millennials are already the world’s largest demographic, and the largest consumer base for banks, with financial power that is only expected to
grow. One key millennial attribute is that they desire real-time fulfillment of service and information needs.
FinTechs have made considerable inroads into this demographic group, many of whom (in particular the mature millennials, aged 26-30), being
already users of mobile wallets and mobile money. Young millennials (aged 18 – 21), for their part, are likely to use peer-to-peer payment platforms
and alternative payment providers. Both these segments are increasingly open to non-traditional modes of payment services, rendered by
non-bank entities.
However, banks have an advantage – they are seen as the most trusted service providers for holding funds, and in providing advice and
management of personal finances. By capitalizing on this trust equity they have earned, banks have an opportunity to provide personal financial
advice, and design customized products and services that enable them to make decisions easily and seamlessly, without leaving their digital
ecosystems.
One area of lack which can well be turned into an
opportunity is that millennials currently do not see banks
as being involved in their lifestyles. By analysing
millennials’ spending patterns, and surveying relevant
moments in their lives, banks can gain insights into
services and products of value to them.
There are a whole range of lifestyle decisions that banks
can value-add to millennials. These include shopping,
budgeting, travel and career, surrounding which revenue
generating propositions can be designed.
The Changing Customer
03
8. The approach to identifying and packaging APIs should be
domain-driven. For banks, this means going back to the drawing
board and scrutinizing all relevant business processes. This
approach requires banks to look at processes from a ‘customer in’
perspective and rationalize them for digital experiences. It also
ensures a progressive buildup of an API repository without losing
sight of the key drivers of the program.
Operationally, a domain-driven design approach entails looking at
every single business process, internal and external facing, and
breaking them down into smaller "building blocks" in an iterative
manner.
This approach is radically different from a bottoms-up, inside-out
approach that looks at the capabilities of the current application
landscape, which results in limiting the possibilities to sustain
future innovations.
While the domain-driven design approach has been used in the
software development world for a while, it has found new
relevance and importance in the open API economy.
Building every single API ground up is not only unnecessary but
also tends to affect the pace and economics of an API program.
After all, no one builds social APIs – we subscribe to them via
Facebook, Google or Twitter. There are wide repositories of APIs
available today for subscription from FinTechs and technology
companies that are focused on business domains. The fact that
these organizations are focused on a single business problem or
domain and very often bring global experience, helps incorporate
globally recommended practices into an API program.
Subscribing to APIs (and if required extending them, which is very
easy) helps accelerate not only the API program per se, but also
indirectly turbo-charges other digitization initiatives that are linked
to it.
1. Adopt a Domain-Driven Design Approach 2. Subscribe to APIs
Our Recommendations
For an API program to be successful, it needs the commitment
and cooperation of the relevant business stakeholders. The most
successful API initiatives have support from the CEO himself.
In the long term, adopting a tactical approach to APIs, for the sole
purpose of running accelerators and incubation programs, may not
yield the best ROI.
Any API initiative should be long-term focused and based on
innovative business and revenue models. This should be further
backed by an enterprise-wide governance team and a progressive
plan that is broken down into short-term goals.
3. Business Driven and Management Oversight
Point of view paper: Achieving a Head start in the API Economy 8
9. 9 Point of view paper: Achieving a Head Start in the API Economy
Winning in the
Open API
Economy
As regulations and customer trends will have it, FinTechs are poised
to become a force within financial institutions. The open API
economy is expected to upend the traditional model of technology
integration within banks, from a “corporate” initiative to a grassroots
movement.
This democratization of product and service propositions is a
win-win for all. This new model will unleash the innovative spirit of
developers, who can exploit the multiple APIs from multiple vendors
to create new functionalities for banks. However, the banks (at least
the more progressive ones who see the immense opportunities in
this upcoming revolution) will be none the worse for it, as they
would be better positioned to build their loyalty with customers,
through the digitalized, seamless experience that they provide to
them.
Most importantly, the open API economy will usher in a more
customer-centric business model within banks, delivering new
services, greater transparency, and accessibility of product features
and costs in real time, along with a higher degree of personalization.
Transactions can be sped up significantly, and feedback from
customers can be incorporated, resulting in faster time-to-market.
In the final analysis, while change is ultimately going to come as a
result of a regulatory push, banks should treat moving to the open
API economy as less of a compliance objective, and more as an
opportunity to deliver superior value propositions to customers.
This requires banks to review their operational models, and revamp
them to cut across business divisions and product lines. APIs as
such, are destined to assume a central role within the technology
organizations of financial instituitions.