APIs and FinTech: What's next?Roland Cortivo, 1 February 2017

The banking world is changingGlobally and in Switzerland

16% of the Swiss population can

imagine to receive offers from thirdparties through their banks

192 FinTech Start-upsin Switzerland

30 Banks in Switzerland

plan to participate in the mobilepayment initiative Twint

Electronic mortgages doubledin Switzerland in 2015

About 50 Banks mergedor closed in Switzerland between2009 and 2014

45 Banks worldwide cooperateto standardize and set the groundrules for the use of Blockchain

Our Market Place VisionBanking in 2025

BankMarket place

ASSETS

ACCESS

DATA FINTECH START-UPS

FURTHER BANKS

NON-BANK SERVICES

Data is thenew currency

Why do Banks need APIs?

>The money is not in the API

>APIs are simply delivering services more efficiently which opens up newbusiness opportunities and maximizes business development

>Agile API development is the foundation of digital business and reducestime-to-market

>Without APIs banks become irrelevant as service providers because thecustomer will expect financial services to be integrated in his experience

>Of course, there are also regulatory provisions, e.g. PSD2 forcing banks toopen up their systems

Why do FinTech Start-ups need APIs?

Typical Pain PointsIn Proof-of-Concepts & Customer Projects (Examples)

Digital Onboarding

> Challenge to integrate videoidentification, electronic signingand account opening to a seamlessprocess

> Higher costs and delay in delivery

Finance portalfor SMEs

> Transfer payments directly fromeBanking to the SME portal foronline accounting service

> Higher costs and delay in delivery

Personal Finance Mgmt

> Interfaces of PFM into eBankingand Core Banking more complexthan expected

> Higher costs and delay in delivery

Swisscom FinTech Engagement

> Building a strong network

> Banking think tank e-foresight

Shaping Environment > FinTech funnel andproof-of-concepts

> Swisscom StartUpChallenge

> Kickstart AcceleratorFinTech-Program

> Transfer of innovationfrom start-ups toestablished players

> FinTech invest-ments in Switzerlandand international early stage start-upsvia Swisscom Venture

Collaboration

Customer Projects

Venture

Business Focus & Technical Enablers

FinancingMarketplace

Digital TrustServices

Regulatory, Compliance and Legal Services

SME AssetLight Finance

Swisscom‘s FinTech Competence AreasSwisscom‘s FinTech Focus Areas

CognitiveIntelligence

Blockchain

Open Banking & Modular Sourcing

CloudServices

FinTech funnel – Proof-of-Concepts

Idea Inspire Interact Implementation

Digital Trust Services

Regulatory & Legal Services

Financing Marketplace

SME AssetLight Finance

Others

SME CashMgmt.

…

…

…

eIDNotakey

(KSA)

…

…

OpenBanking

& FinTechAPI

…

…

…

…

BankingService

Shares

Venture

Prioritizetopics

Developingthe business idea

PoC scoping – prototyping –market validation –

business plan

Transformation

Partnering with Start-ups for 10 YearsSwisscom Ventures in FinTech

2006 201620152009

FinTech LeadersFinTech Fund

Big Data Enabler and Vertical AppsBig Data Fund

SME Fund Small and Medium Sized Swiss Technology Companies

Early Stage Fund Innovative Swiss Early Stage Start-Ups

Global Growth Companies that are strategic to our BusinessInternational Fund

Invests Exits

19 7

6 3

19 3

2 -

4 -

Swisscom supports the FinTech Community

We support start-ups with

> Individual communication solutions

> Personal advice

> Co-workings

> Investments

> Swisscom Cloud

> StartUp Challenge

> Kickstart Accelerator

Your FinTech Experts

Johannes Höhener

Head of FinTech; Blockchain, Regulatory

& Legal Expert

Peter Hofmann

SME, Blockchain& Accelerator

Expert

Roland Cortivo

Digital Identity, Cognitive Intelligence

& Open Banking Expert

Andreas Pages

FinancingMarketplace, Regulatory

& Legal Expert

CarinaThem

SME, CognitiveIntelligence and

Accelerator Expert

API PlaygroundIntegrated solution framework with true E2E manageability

> Production independent

> Transparent

> Flexible

> Little investment

> As a service

> E2E functionality

APIMMobile

APP

An

alyt

ics,

Co

mp

lian

cy,

Rep

ort

ing,

Das

hb

oar

d

APM

SecurityA&I, PA, SSO

Server APP

Automation/Testing

DB

PPM / Rally

E2E

ITIL

/UIM

Join our Initiative

> We are looking for FinTechs and banksto shape the market as first movers andbuild the FinTech APIs of the future

> We offer technology best practice, expertise and funding for proof-of-concepts

Our Offering