tactics for 2018 strategy and - · pdf file- 4 pressures on open banking - how banks should...

Strategy and Tactics for 2018 1

Mehdi MedjaouiLead API economist at API Academy

Co-founder of OAuth.io Founder of APIDays Conferences

Co-author of the state of Banking APIs 2015-16-17@medjawii

mehdi@apidays.io 2

http://www.apidays.io/reports3

- 4 pressures on Open Banking- How Banks should react?- API Strategy and Tactics- API Technology- Final words

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Summary

GAFAMnomics : they all have payment licences

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GAFAMnomics

Killian Clifford : PSD2 an open banking revolution6

1000+ companies

105 Bn in Funding

$867 Bn in value

50+% located in the US

The Fintech Landscape

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An Industry Before the digital transition

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Customers are key

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How Startups take over entire Industries

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How Startups take over entire Industries

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How Startups take over entire Industries

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How Startups take over entire Industries

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How Startups take over entire Industries

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Digital Banking are these new players

Source: Burnmark, PWC, IEB, Garda de la cruz 16

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The state for banking APIs in the world

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The state for banking APIs in the world

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The state of Banking APIs

How Banks should react?

- Bottom up- Agility- Startup-culture- Intrapreneurship- Talent management- Partnerships- VC - M&A

TECHNOLOGY

CULTURE - Design/UX- Mobile- APIs- Identity management- AI/Machine Learning- Containers- Performance- Capabilities- Reliability

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Open Banking : Blue ocean Strategy

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Open Banking : Blue ocean Strategy

Digital Banking are these new players

“ It is not the small who will eat the big, but the fast who will eat the slow”

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80% of IT expenses for maintaining and improving existing applications and legacy systems

11% for initiatives that meet a speedy product pr service or adapting to regulation

9% for medium-long term strategic programmes

The Banking technical debt

24http://www.cityam.com/article/1389920882/uk-banks-risk-financial-meltdown-if-long-term-it-crisis-remains-unresolved

“Refactoring is changing the structure without changing its behavior”

Refactoring with APIs

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Killing company technical debt with microservices

API- Technology A- Programming

language A- Team A- Company A

Business capability

Before

API- Technology A- Programming

language A- Team A- Company A

API- Technology B- Programming

language B- Team B- Company B

Business capability Business capability

Before After

Killing company technical debt with microservices

API- Technology A- Programming

language A- Team A- Company A

API- Technology B- Programming

language B- Team B- Company B

Business capability Business capability

No change, production still on

Refactoring the feature

Before After

Killing company technical debt with microservices

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Banking APIs Strategy and API Tactics

Bank traditional value chain

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Open API Banking strategies

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Product/Experience APIs : Sandbox, SDKs, Account creation and testing, User personas, analytics, Prediction, Bots, Personal assistants, IoT, Alexa Skills, Smart Watch

Platform/System APIs : Customer Data, Payments, Lending, Credit score

Infrastructure/Core APIs : Authentication, Security, Identity, Fraud detection

Open API Banking strategies : Integration

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Open API Banking strategies : Ecosystem

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Open API Banking strategies : Platform

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Open API Banking strategies : Infrastructure

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3rd parties product buildingInternal product building

3rd

parti

es d

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butio

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ontro

led

disr

ibut

ion

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INFRASTRUCTURE

PLATFORMINTEGRATOR

ECOSYSTEM

Opportunities : Who is wrapping who?

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Opportunities : Top 5 Fintech Developers’ demands

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- Reliability and performance- Testing Sandbox reproducing real API behavior- Documentation up to date, with sample codes- Great Developer experience (seamless onboarding, legal

process in the background)- User personas( fake-real user account acting like real

customers over time)

Open API Banking strategies : API management

39Source : Deloitte digital

I am probably overtime...

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Questions?