digital banking on apis: how do we move disbursements
TRANSCRIPT
Digital DisbursementsAn award-winning payment solution for rapidly-changing consumer preferences
Banking on APIs: How do we move forward?
Tom DurkinManaging Director – Head of GTS Digital ChannelsBank of America Merrill Lynch
Aubrey HawesSenior Director – Product MarketingFinancial Services Global Business UnitOracle
NACHA Payments 2017Austin, TX April 23-26
Aubrey HawesSenior Director – Product MarketingFinancial Services Global Business UnitOracle
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The Application Program Interface (API) Economy
Netflix has used its API to extend its service to over 200 different devices -- television, gaming devices, remote controls -- on all major
mobile platforms in less than two years.
About 65% of banks' new technology spending —was deflected over the last 24-36 months to
address regulatory gaps in compliance, risk, security and fraud.
Big Banks Will Look More Like Google by 2025, American Banker
75% of the top 50 banks in the world will open their API and 25% of these
banks will have their app stores for customers. Gartner research
US companies alone will spend nearly $3 billion on API management over the next five
years. International sales will take the global market over the billion dollar mark in
annual revenue. (Forrester)
By making your own core competencies
accessible via API you become part of an ecosystem and no longer have to
develop all ideas on your own.
Wirecard Bank
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Open APIs – the Opportunity
3
5 B2C
Source: The Payments Innovation Jury Report 2013
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Evolution of APIs
Source: ProgrammableWeb – January 7, 2015
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Growth of APIs
88
API Initiatives in the Banking World
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Open Banking APIs
Innovation & Monetization Corporate Access
Efficiency & Standardization Regulations & Market Initiatives
Enabling Fintech
3rd Party Developers (App Store)
Consumer Financing
AI, Chatbot, IoT....
Corporate On-
Boarding
Global Payments
ERP Integration Recon
Customer Experience
Niche Capabilities
Process Digitization
Service Automation
PSD2Open
BankingFramework
Country SpecificCentral Banks
Regtech
OpenBanking
APIs
Graphics provided by Oracle
1010
Financial Services Open APIs
End to End Customer Lifecycle Services
Business servicesdocumented
APIs are explorablethru
Graphics provided by Oracle
1111
Comprehensive and Well Documented Digital Banking API repository
Platformification
Buy & ExtendAs opposed to
Build
Graphics provided by Oracle
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Oracle Vision for Financial Services API Enablement
It’s about Innovation, not (only) Regulation
Innovation and Revenue can go
TogetherThink Bigger thanthe API Frontend
Tom DurkinManaging Director – Head of GTS Digital ChannelsBank of America Merrill Lynch
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Evolution of Banking Channels
Banking services integrated into client business processes
Branch
Data Transmission
Online Portal
Mobile
Banking for the Future
PC Banking
TTY/VRU
• Evolution into real-time integrations and interactions• Direct integration of banking services into corporate
business processes• Clients access bank services on their own terms• Opens up new business services• New data consumption experiences• May not require use of traditional banking channels• Enabled by ‘always-on’ APIs - 24/7/365
Commercial CardsGlobal Trade
Fulfillment & Servicing
Payments & Reporting
What is the Bank of the Future?
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Next Generation Access to Banking Services
APIs Expose Services to Clients
Real Time
‘Always on’
File Transmission
Online
Payments Liquidity
CardsTrade
Banking services bundled and pushed through defined
channels
Mobile
ClientTMS or ERP
Banking services unbundled and made available through APIs
TMS/ERP Vendor
Alliances3rd Party Apps Partner Banks
& Payment Networks
External API Management
Gateway
PaymentInitiation
PaymentApproval
KYC DocUpload
Liquidity View
Alert &Notify
APIs are used by:• Internal bank services & Gateway Merchants• Payment Service Providers (PSD2)• Client vendors (ERP, TMS vendors)• Fintech providers• Cloud hosting providers (AWS, Microsoft)• SaaS solutions (Quickbooks)
• Information/guides• API Catalog• POC & test Sandbox
UnbundleBanking Services
GTS Products and Services
Internal API Management Gateway
MS Office Apps
1616
Alignment to Microsoft® Office Roadmap
Next Generation Banking Services
Microsoft Excel remains the #1 cash positioning and analysis tool for companies of all sizes.
Microsoft Office strategy is for cross-platform collaboration and productivity• Designed for ‘cloud and mobile first’ - Office 365*: 70% Revenue Growth, 18.2M consumer users• Integrated approach to all Office products to enhance productivity – esp Excel, Outlook, PowerPoint• Excel is Microsoft’s user interface for business intelligence• Office 365 runs on Windows, iOS and Android• Build once, deploy to multiple operating systems
CashPro Accelerate 2017 – a Web-based App in Excel• API-based access to banking services - enables next generation of banking services• Retains Excel ‘power-user’ experience• Leverage Microsoft PowerView for Business Intelligence and analytics• Extensible into additional Microsoft Office applications used by clients• Potential for further integration with other bank products (eg: liquidity) and vendor systems
*Source: Microsoft Q1 FY16 Earnings Release
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Download from the Office Store
Office Web Application Runs Inside Excel
• Users will download the application from the Microsoft® Office App Store
• Applies to Office 2013* and later
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APIs – Real-time integration for treasury
Modify Account Signatories
Access Aggregate Account Services
Initiate Real-time Payments
Real Time
‘Always on’
Examples of APIs and vendors for illustration only
Access to DiscreteBanking Services
APIs Enable
“Open Banking is about making everything for sale. It provides a new way to increase digital revenue for the banks that are willing to think differently... Open Banks and FinTechs will continue to erode margins and customer relationships for those banks that don’t.”
- Kristin Moyer, Gartner, Research Vice President & Distinguished Analyst
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