1. Data 2. APIs 3. What is the connection to banking? 4. Impact on banks and banking IT

1. Picture by Kuster & Wildhaber Photography, flickr
HOW OPEN APIS WILL CHANGE THE
FUTURE OF BANKING
January 2016
Hamburg /Germany

2. 1. Data
2. APIs
3. What is the connection to banking?
4. Impact on banks and banking IT

3. Data is the new oil

4. Only connected / smart data has a true value
- Context
- Relevance
The true smartness of data is the aggregation of different sources:
- Overall view
- No value when only taking a silo in consideration
Data is not an end itself

5. 1. Data
2. APIs
3. What is the connection to banking?
4. Impact on banks and banking IT

6. What are APIs?
An API is for a computer what an internet browser is for humans
figo API
HTML code
Subscription check based on bank account transactions
(https://www.aboalarm.de/vertragscheck)
+ =
> 3.000 financial sources

7. Best practice of “API companies”

8. Google maintains over 100
different APIs which enable
third party developers to
create new services. These
new services have a big impact
on Googles success story.
Google
Nearly every Google service can be accessed from third parties via an API

9. Salesforce would not have
been as successful as they are
without their force.com
platform. force.com is home to
a massive number number of
third party services which can
be used by every Salesforce
user.
Salesforce
Vertical and horizontal services on top of Salesforce API

10. Twilio & Stripe
Hidden champions: communication and payment are crucial infrastructure
With Twilio and Stripe any developer can implement payment or communication services
into their own service - without the usual complexity.
All of us have used at least one service which depends on Twilio or Stripe (Uber, Coca Cola,
Kickstarter, Twitter, …).

11. Scaling across IT and developer communities
Facebook, Apple, PayPal, UBER - or in short: all digital successful offerings.

12. 1. Data
2. APIs
3. What is the connection to banking?
4. Impact on banks and banking IT

13. › Existing assets from banks are losing value
› Size
› Branches
› Tradition
› Traditional networks
› Customer relationship
› Regional proximity and ties
› Powerful IT systems

14. New requirements are developing but only third parties
fulfil them
› Speed
› Innovation
› Flexibility
› New skills
› Flexible and strong IT
› Daily relevance and context of financial data

15. Consequence: The financial world is currently being disrupted
Quelle: www.millennialdisruptionindex.com/

16. The new financial landscape
Startups and incumbents from other industries are entering the space
Bank BBank A
Customers
Products

17. Important:
None of the new players is trying to replace a bank completely

18. Focus on specific use cases
Result for the banks: „Death by a thousands cuts”
Quelle: Tom Loverro, RRE Ventures, Slideshare

20. Rebundling follows unbundling
The “FinTech supermarket”
“Eventually, Number26 wants to be a FinTech
hub that offers users the best financial products
through integrations with other players, such as
TransferWise.”
Source: http://dailyfintech.com/

21. What would be a suitable answer from banks?
To beat the new entrants at their own game.

22. How could the future of banking look like?
• A true financial home for the customer - also in the digital world
• Connected and smart
• Full of context and relevance
• Role model and competitors are digital ecosystems and new entrants
• PSD2 and XS2A is the catalyst for this mindset
The required transition
New role models and regulation are opportunities
Banks today
• Isolation of own systems
• Believe into the loyal customer
➡ Totally unrelated to today’s reality

23. Flexibility
Aggregation
Speed
New use-cases
Implementation of third parties
New ways of monetisation
Growth driver
New customer loyalty
APIs are the centrepiece of the connected world
The required foundation for data, platforms and ecosystems
-> Only the API defines the frame
-> Complete overview
-> Internal IT does not limit
-> Third parties develop new services “for me”
-> End of financial data silos
-> APIs allow access to data
-> Infinite resources and ideas
-> Create context and relevance for the user

24. APIs are not an end itself, but part of the strategy and
mindset.
Clashes of thought patterns:
Openness <-> Isolation
Third parties <-> Do it on your own
Ecosystem <-> Silo
API as a part of a business strategy
A google search for “Banking API” only displays
one single bank!

25. Banks usually do not have APIs, but something they
call “interfaces”.
The big difference between an API and an interface
is that interfaces can be used by third parties and
APIs are build for third parties.
API & Banks
Are there any APIs from banks?
No results while searching for “API” at the two
biggest banking IT service providers in Germany.

26. What is figo doing?

27. After two years around 500 developers are using the API for different use cases:
• Nine API calls per second or 24m per month
• 160.000 daily users
• figo is connected to more than 50m bank accounts at more than 3,100 financial
sources
figo is the missing link
Fulfilling the need of aggregation and banking API

28. Account aggregation -> Kontoalarm, Moneymeets
Algo banking -> Fincite
Bank account switching tools -> FinReach, fino, dwins
Online subscription check -> Aboalarm
Real time risk management -> auxmoney
Scan & pay -> organize.me
Open position management -> Debitoor, Fastbill
P2P payments -> Cringle
Travel expenditures -> Xpenditure
Innovation labs and POCs -> Bankathon, UBS
Exemplary use cases on top of figo API
Focus on the user and not on products

29. The figo technology can be easily used by banks:
• Account aggregation (multi banking services)
• Foundation of an API layer (Groundwork for X2SA)
• Absorb new ideas (banking app-store, POC platform)
How can banks benefit?
Banks can harness the figo technology, developer community and use cases

30. Best-Practices
a. Banking Apps
b. Account switching service
c. Investing solution
d. Risk management
e. SME solutions
f. Others

31. Banking App: Kontoalarm
A banking app focused on cost control and prevention of unwanted debiting
Link: https://itunes.apple.com/de/app/kontoalarm/id737679841?l=en&mt=8

32. Banking App: KontoPilot
The Banking App from Deutsche Post (German Post)
Link: https://itunes.apple.com/de/app/e-post-kontopilot/id853741578?mt=8

33. Banking App: organize.me
Just one single app to scan, archive and pay your invoices
Link: https://itunes.apple.com/de/app/organize.me/id818586986?mt=8

34. Banking App: Wyze.me
A PFM solution to automate your finances

35. Best-Practices
a. Banking Apps
b. Account switching service
c. Investing solution
d. Risk management
e. SME solutions
f. Others

36. Account switching service: fino
Is going to be used by comdirect, Commerzbank, …
Link: http://fino.digital/
The implementation of figo will be invisible for the user.

37. Account switching service: FinReach (Finleap)
Cooperations with Sutor Bank and DKB
Link: http://www.finreach.de/#accountswitch
The implementation of figo will be invisible for the user.

38. Account switching service: DWINS
New bank account through an easy switch
Link: http://www.dwins.de/
The implementation of figo will be invisible for the user.

39. Best-Practices
a. Banking Apps
b. Account switching service
c. Investing solution
d. Risk management
e. SME solutions
f. Others

40. Investing solutions: Fincite
figo is the foundation of robo advisory solution from Fincite for banks
Link: http://fincite.de/

41. Investing solution: moneymeets
Social trading and community platform
Link: https://www.moneymeets.com/home

42. Investing solution: Aktienfreunde
Implementation of investment portfolios in order to track and compare trends
Link: http://aktienfreunde.net/index

43. Investing solution: Equity Farmer
Implementation of investment portfolios for better investment recommendations
Link: http://www.equityfarmer.com/

44. Investing solution: Hatch
Define saving goals and save automatically through rounding up while paying with your card.

45. Investing solution: Prosper
Quick and easy investing in ETFs with a mobile app

46. Best-Practices
a. Banking Apps
b. Account switching service
c. Investing solution
d. Risk management
e. SME solutions
f. Others

47. Risk management: Auxmoney
Real-time scoring based on account transactions
The implementation of figo will be invisible for the user.
Link: https://www.auxmoney.com/faq#q5

48. Risk management: Cringle
Verification of bank account for P2P payments in real-time
The implementation of figo will be invisible for the user.
Link: https://www.cringle.net/

49. Risk management: Decimo
Automatic bank account check for incoming transactions
The implementation of figo will be invisible for the user.
Link: http://www.decimo.de/

50. Best-Practices
a. Banking Apps
b. Account switching service
c. Investing solution
d. Risk management
e. SME solutions
f. Others

51. SME solutions: Debitoor
Smart banking for SME: Accounting can be fun
Link: http://feedback.debitoor.de/knowledgebase/articles/604638-zahlungen-zahlung-
buchen-dokumente-figo-ba

52. SME solutions: Xpenditure
Gathering of expenses through readout of bank account & credit card transactions
Link: https://xpenditure.com/de/figo

53. SME solutions: Candis
Supports you with gathering, organising and paying of incoming invoices
Link: http://www.candis.io/

54. SME solutions: MIA
MIA allows the user to interact with their bank in the easiest way - via texting

55. SME solutions: Fastbill
FastBill was build for Small Businesses and Entrepreneurs: Invoices, easy to make, beautiful to see
Link: https://www.fastbill.com/en/

56. SME solutions: Minnits
Gathering of expenses through readout of bank account and credit card transactions
Link: http://minnits.de/

57. SME solutions: Skyline
Software for certain industries - here: building cleaner
Link: https://skyline-web.de/handbuch/zahlungsverkehr/27-die-figo-app-
kontoumsatze-abrufen-und-zuordnen

58. Best-Practices
a. Banking Apps
b. Account switching service
c. Investing solution
d. Risk management
e. SME solutions
f. Others

59. Others: Smart Statement by organize.me
Automatic analysis of email attachments including matching of invoices to bank account transactions

60. Others: #more
Categorisation of bank account transactions through self-learning algorithm

61. Others: Trust Pay
Create and execute fully automated commercial agreements including payment

62. Others: Vertragscheck
Subscription and contract verification based on transactions, possibility of cancellation
and notification of duration

63. 1. Data
2. APIs
3. What is the connection to banking?
4. Impact on banks and banking IT

64. Required parts of a successful API mission:
• Intention to open up
• Desire for speed
• Strong believe in platforms as the foundation for banking of the future
• Commercialisation of the API
• Creation of an own ecosystem for the user
APIs are worthless without a proper mindset
Building an API is easy, the consequences are the true challenge

65. Banks require new infrastructure - figo can be a part of that
One system but with different speeds and responsibilities
Systems of record - Core banking system
Systems of differentiation* - API layer like figo
Systems of innovation - different frontends
© 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.
„I do not know what I need at the
moment, I need to experiment“
*Also referred to as “Uniqueness”
„I know what I need, but my
requirements are unique and there no
bundles available for me”
„I know what I need: a standard
product which has no USP.“
Owner: Third parties or innovation labs - permanent releases
Owner: Internal IT - regular updates
Owner: Outsourcing - Rarely new releases

66. FinTech startup role model Number 26
Separation of the systems
Core banking system and card processor
Data buffer and API-Layer
iOS App / Android App / Web-App / CRM
© 2011 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates.
Owner: Number26
Owner: Wirecard Bank
Owner: Fiducia GAD / Wirecard Processing FZ LLC

67. First examples of APIs from banks in Germany
Trading and payments
Comdirect API: Developed for 2nd
Bankathon in November 2015
Fidor Bank API: Payment

68. The digital frontend is the future of banking
Future of banks is banking
• The digital customer fronted is crucial for success
• Bank(ing) is part of daily life
• It is an “everyday-OS”
• This happens mobile and in the right context
• It is all about relevance, which is determined by the user
• In order to achieve this, the right setup and skills are
required
• Technology is part of all of that, but mindset is and will be
the driving force

69. André M. Bajorat
E-Mail:
Mobile:
amb@figo.io
+49 172 4574783
Address
figo GmbH
Burchardstr. 21
20095 Hamburg
Web
www.figo.io
@figoAPI
Let’s change the way we bank today!