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APIdays Open Banking & Fintech: Workshop - Financial Services Use Cases for APIs


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This was a fairly high level presentation I did at the APIdays Open Banking and Fintech event in London where I started to explore the main drivers for APIs, the mega trends in consumer banking and the various use cases for APIs within Financial Services.

Published in: Economy & Finance
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APIdays Open Banking & Fintech: Workshop - Financial Services Use Cases for APIs

  1. 1. ©2015 Apigee Corp. All Rights Reserved. Workshop: Financial Services Use Cases for APIs Jeremy Brown, Apigee @tenfourty
  2. 2. ©2015 Apigee Corp. All Rights Reserved. Were you expecting API Best Practices from Apigee? • As this is a Financial Services event I decided to walk through a few use cases for APIs in Financial Services instead! • Have no fear, there are have – APIs for Dummies – basic intro to APIs – The Definitive Guide to API Management – THE definitive guide! – And many more eBooks! - 2
  3. 3. ©2015 Apigee Corp. All Rights Reserved. But first a quick retrospective: WHY APIs? 3
  4. 4. 4 Digital is transforming every business Nature of Market Retail Music Cars CPG Books Food Cleaning Services Consulting Mining Weightless Intermediate Nature of Product 2000s 2030s Heavy B2CB2B2CB2B 2020s Source: Gartner - CEOs and CIOs Must Assume That Every Industry Will Be Digitally Remastered, 2014, Raskino
  5. 5. ©2015 Apigee Corp. All Rights Reserved. 5 Those who fail to adapt to change Those who adopt the technology Those who (re)build their business around the change Technologies have This hashappened before changed the market context
  6. 6. ©2015 Apigee Corp. All Rights Reserved. 6 liberated data + agile platform technology + vibrant developer ecosystem = platform business How does a 100+ year old company become a platform business? data What does a 100+ year old company have?
  7. 7. Speed up while preserving existing investments 7 Backend Intelligent Digital Business Platform layer SOA / Middleware layer System of Record YearsMonths IT Applications Partner Apps Mobile Clients "Internet of Things" Days Database API EXPOSURE API CONSUMPTION
  8. 8. ©2015 Apigee Corp. All Rights Reserved. Mega trends in consumer banking 8 Agility in application development and digital • 2 Speed IT – increased agility to deliver functionality without compromising availability • Scaling and securing infrastructure and applications • Consolidating applications Threat of substitution – fintech disruption stretching well beyond payments • Digital Banks, Marketplace Lenders, Crypto-currencies, Roboadvisors • Payment landscape continues to evolve The ever changing technology landscape • Chairman of large European bank believes bank’s future lies in as a software company competing with Amazon Apple and Google • Ubiquitous connectivity, open architecture and user-centered design is transformational • Big Data, Cloud computing, Mobility, Social Media and APIs are changing the landscape of what is possible with technology Changing consumer behavior, expectation around customer centricity • Expectation from digital is more than before • Digital is key for service and sales • Omni-channel and hyper personalized experience Privacy and security will draw increased scrutiny from consumers and regulators • Digital authentication measures are evolving – Biometrics • More security features will be needed to reassure customers
  9. 9. ©2015 Apigee Corp. All Rights Reserved. Key technology strategies to respond to these imperatives 9 Improve infrastructure and security • Optimize infrastructure with public / private cloud and virtualization • Consolidate applications and infrastructure • Enhance end-to-end security Data & analytics foundation and wins • Infrastructure and COE • Operationalize insights Agile delivery model: Two-speed IT • Boost innovation + efficiency • Agility, speed, scalability Enhance digital foundation and key capabilities • Drive seamless and sticky customer experiences • Architect for building a digital ecosystem around your services • Mobile payments innovation Financial services firms are evolving to an API based architecture to address some of these objectives
  10. 10. ©2015 Apigee Corp. All Rights Reserved. The value proposition for APIs and an API based architecture 10 Foundation for accelerating Digital development – 2 Speed IT API Banking as a Channel to scale innovation API based Financial Services solutions • Increase agility of digital and IT teams by decoupling systems of records and systems of engagement. • Increases time to market of of digital offerings • Increase customer experience measures • Scales innovation through ecosystem of fintechs, developer communities • Scalable, secure infrastructure • We have helped our customers across industries innovate using this model, build new service offerings and increase revenue. • Quicker time to market with API based Emerging Payment solutions, Digital Banks and emerging models in Credit and Wealth management • We are investing in inter-operable APIs, implementing standards to decrease the on-boarding time of emerging payment solutions for our customers.
  11. 11. ©2015 Apigee Corp. All Rights Reserved. a holistic approach from identifying value to defining the new digital operating model 11 APIsUsers Apps Developers API Team Back-end Intelligent API Platform Digital strategy planning and change management Rapid prototyping Building scalable infrastructure on private and public clouds Expert services & hackathons Customer facing apps Internal users
  12. 12. ©2015 Apigee Corp. All Rights Reserved. Financial Services are building a platform to create connected experiences for their customers faster and at scale … Digital Banks and Monetization of data PFM, card linked offers Develop alternate models in Lending P2p lending, alternate decisioning, using IoT in equipment finance Access control, and risk management Reduce risk through access control, metering of enterprise assets Outside-in Transaction Banking Business to Bank integration from ERP, Treasury workstations and 3rd party apps Alternative models in Wealth management Roboadvisors for affluent segments Deposits LoansInvestments Payments Third-party services e.g. Health, Smart Govt etc Other Banks 12
  13. 13. ©2015 Apigee Corp. All Rights Reserved. … Some are opening up an API platform to expose APIs and build ecosystems – API Banking as a new channel to scale innovation efforts 13 APIs have helped industries innovate, create new service offerings and increase revenue with this model Can scale innovation efforts and unlock hidden potential in a firm Deposit, credit, investment and payments Fintech ecosystem External developer communities Other FIs Secure, controlled APIs The API Banking Ecosystem
  14. 14. ©2015 Apigee Corp. All Rights Reserved. Leading payment companies are using APIs to create emerging payment solutions for 14 • Apple pay & other mobile wallet* integration • In-app purchase • Card not present transactions • Check out with online credentials • Loyalty and offers • Pay with points • API end-points / enabling contextual commerce • Analytics • Fraud prevention • Social media integration • 3rd party • Developer /fintech ecosystems * Inflight projects Partners / Developers / FintechsMerchantsConsumers
  15. 15. ©2015 Apigee Corp. All Rights Reserved. Internal API economy 15 apps developers and partners platform technology (APIs, apps, cloud, devices…) data
  16. 16. ©2015 Apigee Corp. All Rights Reserved. API all the things - Infrastructure • Expose all of your services as self-service APIs • Abstract away –private and public cloud – mediation –IaaS and PaaS –SDN –all parts of the Software Defined Data Center You can’t just expose the raw APIs without adding in your own “stuff”* - build a smart façade on top. *Authentication, Authorization, RBAC, Audit Logging etc. 16
  17. 17. ©2015 Apigee Corp. All Rights Reserved. Monetise your Data • Open up your data – both internally and externally • What systems do you use internally? – Would people pay for this? – Can you build an API in front of it and make it a product? Revenue-sharing models (API provider pays developer) Fee-based models (API provider charges developer) Freemium models Fixed Flexible Hybrid (flat fee plus fixed or flexible) Transaction One-time Subscription Duration Quantity Hybrid Transaction Volume Custom Attribute Advance / Arrears Pro-rated / Full amount Revenue / Volume Bands
  18. 18. ©2015 Apigee Corp. All Rights Reserved. Key Characteristics We have learn with our customers in the field that these characteristics should be applied to all API initiatives: • Self Service & Ease of Use • Multi-Tenant Architecture • State at Scale • Security • Cloud First – Public and Private • Configuration and Code – agility wins! 18
  19. 19. ©2015 Apigee Corp. All Rights Reserved. Stepping up to a Platform Business 19 Project Program Platform
  20. 20. ©2015 Apigee Corp. All Rights Reserved. 20 liberated data + agile platform technology + vibrant developer ecosystem = platform business
  21. 21. Thank you