API Gateway Digital access to meaningful banking contentUnlocking The Core

April 10 2017Jason Williams, VP Solution Architecture

APIs In Banking

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A Shift to Openness

Major shift in Banking occurring whereby Financial Institutions are

using Open APIs to build next generation consumer offerings as well

allowing third party developers to partner and build applications and

services using the banks data.

The goal is to give consumers better and more personalized information for

making sound financial decisions, and drive deeper 'trusted adviser' relationships

that ultimately will result in stickier customers as well as product up-sell and cross

-sell.

With Open APIs banks are creating opportunities to move from a transactional

customer relationship to a more engaged, more valuable, and ultimately more

profitable relationship.

Key Trends Influencing Open APIs

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Changing regulatory context acceleratingindustrialization.

Pervasive digital transformation mandating improved service orientation of product offerings.

Banks trying to compete or partner with fintech's to drive innovation.

Open banking platforms built on service-oriented architectures.

SMBs trying to leverage simpler, more effective banking options.

Major shift in banking business architecture to support componentization.

Business Benefits of Open APIs

Improve Time to Value and MarketComponentize data and business logic to significantly reduce the time to build and deploy applications.

Provision End-to-End Capabilities to Create New Sources of RevenueCreate new revenue sources (cross-sell / upsell opportunities) for financial institutions due to the advent of API driven channels (new business channel for managing APIs).

Grow the Customer BaseGrow the customer base by attracting customers to products and services through API ecosystems.

Foster and Leverage InnovationDrive innovation by capitalizing on the composition of different APIs, both yours and third parties.

FIS Enterprise Modernization Strategy

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Modular Solutions for Enterprise Services Enablement

CORETransactional based Account Engine providing

Scalability, Agility, and Extensibility

OPEN APIsApplication programming interface that provides

developers with programmatic access to all FIS CORES and component solutions.

ENTERPRISE ALERTS• Centralized member alerting engine• Member account alerting and ongoing alert triggering

and channel delivery management

PRODUCT & PRICING• Improved velocity to market through a single source for

dynamic product definitions, based on needs assessment• Broader packaging of products and services offered on

disparate systems

COLLATERAL & LIMITS• Manage risk exposure across LOBs and member base• Track and manage covenants and conditions

PINPOINT MARKETING• Target messaging to members based on key life Indicators• “Always on” messaging and campaigns that learn and pattern

based on customer behavior and needs• Third-party site integration (Facebook, Google, etc.) while

maintaining sensitivity of PII data

ENTERPRISE CUSTOMERA holistic, accurate view of consumer to improve sales and service; provide single solution to maintain key quality information about the consumer

DIGITAL ONE• Single Channel For Omnichannel Banking

• Robust Customization Capabilities• Cross Channel Experience & Workflow control

FIS Enterprise Modernization Strategy

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Solution Enablement via APIs

covenants & conditions

Targeted Promotions

Relationship Management

PRO

DUCT

SSO

LUTI

ON

S

CORE

ENTERPRISE CUSTOMER

PRODUCT AND PRICING

PINPOINT MARKETING

COLLATERAL & LIMITS

DIGITAL ONEENTERPRISE ALERTS

Digital Bank

Loans

House holding

Dynamic Bundling

Rate Management Internet Offers

Voice Banking

Account Alerting

PROFILESYSTEMATICSIBS

Unlocking the Core

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Retail banks have owned end-to-end service delivery by tightly integrating experience, processes and products. This approach is under attack from all sides. Consumer-centric, born-digital fintech firms are competing directly for customers by providing superior user experiences, enabled by accessing application services and data across financial services providers. Traditional banks are forced to rethink their value proposition to stay relevant to consumers.

OPEN BANKING APIs• FIS focus on opening up traditional CORE capabilities and assets via Open APIs to deliver

more innovative customer-centric solutions. • Deliver APIs that banks can share data with internal developers, partners and third-parties

such as fintech's.

Solutions Assembly• Focus on delivering experience APIs that deliver componentized business

capabilities that facilitate plug-and-play operations.• Allows banks to reinvent themselves as assemblers of financial management

solutions, tailored to meet customer needs.

Innovation & User Experience• Provisioning consumable capabilities and data to partners so they can provide innovative

customer-oriented offerings, such as a virtual intelligent banking assistant.• Spur a multiplier effect for growing the customer base and revenue, while simultaneously

reducing costs.

API Implementation Approach

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• Establish standards for exposing APIs through an API management solution– “Outside facing” APIs abstract the domain model and provide a mapping

between semantics, protocols, security mechanisms, etc.– Drive API design from the outside in, rather than inside out -- existing integration

typically tends to reflect the domain model– Use API management as a pass-through proxy for existing business-oriented

fine grained back-end services – Mediate granular APIs focused on business needs to coarse services as

appropriate

• Design business APIs based on real consumer needs– Without concern for technology platform and core capabilities– Abstract complex message-centric processing– Should be concise and simple to consume

• Establish API governance and lifecycle management strategies

• Respect the interface and refactor implementations as technologies and back-end topologies evolve

Open API Process and Timeline

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Initial Exploration• Partner/internal apps

with limited core system integration.

Platform Selection & Expansion• APIs providing

commoditized services.• Moderate core system

integration.• Low development

effort.

Core Process Transformation• API-based scalable

service model.• High level of core• system integration.

Full-Fledged Open APIs• Fully functional API

marketplace established as a new banking channel.

• API development for self-serve IT.

• Time to market for app development reduces significantly

Tactical API gateway built on existing technology stack.• Utilization of multiple API

management vendor capabilities.

API management platformimplemented.• Basic API portal

established.• Business-prioritized

systems/use cases exposed.

Legacy processes transformed.• API ecosystem with

metering and monetization.• Elastic back-end

architecture.• Collaborative community

management portal for partners and developers.

Highly dynamic and personalized architecture.• Run like a product: Automated

customer-centric ecosystem.• Organic services and

architecture enabled by loosely-coupled components.

2016 2016 2017 2018

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FIS API Gateway

APIs Are Key for Banks to Compete

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Enabling Banks to Deliver what Customers Need

Customers benefit from new services faster and across any channel

Banks offer new apps to their customers and launch new services faster, cheaper, and securely while retaining data control.

Developers (Internal & 3rd Party) have easy access to banking data and services which can then be passed along into their value chain.

APIs

Micro-Services

Businesses

Direct Consumers

FIS API Gateway built on WSO2

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FIS has selected WSO2 as the foundation for the API Gateway to help us deliver a central access point for FIS to expose and manage all FIS solutions via APIs, such that customers can easily integrate to any FIS product and leverage FIS solutions across any digital channel that banks and fintech's see fit.

Proven platform for delivering agility at scale

• Industry leader – largest API cloud platform and private cloud provider.• 4.6 Billion txns processed daily, 125,000 peek requests per second.

Reduce on-boarding time of banking & payment solutions

Bring innovation with emerging technologies

• Reduce time to market for our clients by simplifying the on-boarding of Banks, fintech's, merchants, retailers, ecommerce players through interoperable APIs.

• Commitment to innovation such as IoT and Blockchain based distribution ledgers

Proven platform for building innovation ecosystems

• Intelligent API platform enables the API value chain

&

API Management Essentials

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API lifecycle management platform to unlock this opportunity for our FI’s

Developer Authentication

Global Deployment

Mobile Optimization

Onboarding

Versioning

API Documentation

Traffic Management

Partner Customization

Monetization

Security

Reporting and Monitoring

Transformation

API Gateway

The FIS API Gateway

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The Value Proposition to Our Clients

DIGITAL PAYMENTS

POS PaymentMobile Money P2PePaymentsVirtual Prepaid

BANKING Cores (Systematics, IBS, Profile)Mobile BankingmATM CashRemote DepositMobile Bill payCard Production

NETWORKS

PAYMENTSPSD2DepositsLendingNetworksReal Time

LOYALTY SERVICES Mobile Merchant Rewards

In Store PickupFinancial Services RewardsMerchant Rewards

INTELLIGENCEPinpoint MarketingCustomer SegmentationPricing OptimizationCampaign ManagementRisk Mitigation

FIS API GATEWAY

Inserts FIS into Banks value chainAllows banks to expose data

and services and Co-pete vs. Compete with new digital competition

BANK GATEWAYor FIS GATEWAY

FIS API Gateway– Overview of Capabilities

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Developer Services

Developer Portal

Docs & Modeling API

ExplorerMonetization

Analytics Services

Developer Metrics

Ops Analytics

App Performance App Usage

API Services

API Management

BaaS Security API Extensions

Backend

API Team

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FIS API Gateway Demo

API Gateway – Demo

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API Gateway – Proof of Value

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