Tail's Slides from the AWS Pop-up Loft event called Open Banking

1. Introduction
Tail
AWS Loft Event, 20th September 2017

2. Tail
Real-time cashback promotions for open APIs
The first open cashback platform
Tail is the first open cashback platform able to work across
banks, enabling retailers to feed in promotions which are
automatically pre-linked to a user’s card.
Real-time promotions
Promotions displayed are time-, location- sensitive, can be
tailored to specific audiences and are updated in real-time.
Convenience
All display and redemption of promotions happens in-app,
delivering a frictionless user experience by eliminating the need
for paper or voucher codes or staff interaction.

3. Open APIs are a new consumer touchpoint
Open APIs represent a new touchpoint with the consumer -
beyond purely banking-related products.
A better user experience
Engaging the user depends on delivering a better user
experience in terms of convenience and/or personalization –
which APIs allow for.
Eliminating friction in ‘classic’ offer marketing
‘Classic’ way of running promotions entails a number of friction
points for the consumer (e.g. ‘2nd class’ customer experience)
and the retailer (e.g. voucher fraud).
Tail eliminates those friction points for all parties involved by
digitizing and simplifying the redemption process.
• High value offers
• Maximum convenience
= a better experience
User
Retailer
• Better targeting & no more
blanket marketing
• Ease of use & time-saver
How open APIs help to deliver a better user experience

4. Integrating with Starling
• First publicly available current account API
• 3 months from start to finish of integration, including
• Technical integration
• Compliance review
Building and integrating the solution
Jan Feb Mar Apr May Jun Jul Aug Sep
Integration
Starling launch Tail launch
Building the solution
• Concept development mid-16
• Built on AWS as proven solution in regards to
security, scalability and ease of use

5. Key points(1)
• PSD2 will regulate existing payment service providers (PSPs) as well as the operators of e-commerce
marketplaces and platforms, gift card and loyalty programs, amongst others
• PSD2 introduces two new payment services to cover third-party providers (TPPs) – Payment initiation Service
Providers (PISPs) and Account Information Service Providers (AISPs)
• PSD2 mandates how account-servicing PSPs must interact with TPPs, with a key focus on security (reporting
requirements, authentication and technical standards)
• In the UK, the FCA will be responsible for ensuring AISPs and PISPs are registered or authorized
• PISPs must be authorized and must have a minimum of €50,000 in initial capital (or higher if they provide
certain other payment services)
• For AISPs, there is an option to become a ‘registered account information service provider’
• i.e. no capital requirements and will need to meet fewer conditions than authorized firms
• Both AISPs and PISPs will have to hold professional indemnity insurance (PII)
• The EBA has developed Guidelines on PII
1) PSD2 – Ramifications for existing market players, Osborne Clarke April 2017
Regulatory environment
PSD2 has introduced new payment services to cover third parties

6. How open APIs are going to change the industry
Implications for businesses, challenges and risks
Convergence of industries
will accelerate
Integration vs fragmentation
Marketplaces will become
ecosystems
1
2
3
• Importance of transaction data extends beyond banking
• Can be used to tailor solutions in industries such as healthcare, insurance or
retail
• New business and commercial models can evolve (e.g. Mable FinCare)
• ‘Buy-vs-build’ becomes ‘buy-vs-interface-vs-build’
• Standardized APIs increase commercial viability of interfacing
• Businesses will need to be open to avoid isolation
• Current marketplaces will initially see lots of new integrations/ startups
• Emergence of gatekeepers given caution around data sharing
• ‘2nd level’ integration among marketplace constituents

7. Real-time cashback
promotions linked to your
card.
Download “Tail Offers” on the
app store and simply sign in
with your Starling account.
Don’t have a Starling card?
Use our skip the line code
for Starling Bank ‘CASHBACK’
and redeem instantly with
Apple Pay.