apidays LIVE Singapore - Connected Core Banking Digital Ecosystems in the Era of Open Banking Anastasija Nikitin, Business Expert API Banking at Commerzbank

1. DIGITAL
ECOSYSTEMS IN
THE ERA OF
OPEN BANKING
Apidays Singapore, 08/20/20, Anastasija Nikitin
COMMERZBANK’S WAY TO OPEN BANKING & BEYOND

2. COMMERZBANKAT A GLANCE
8.6B
REVENUE
~48,500
EMPLOYEES
>11M
CLIENTS
~800
BRANCHES
As of 2019 1
Anastasija Nikitin, 08/20/20, Commerzbank AG

3. WHERE WE COME FROM
2
Anastasija Nikitin, 08/20/20, Commerzbank AG
Cluster
Lead
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Cell 1 Cell 2 Cell 3 Cell 4 Cell 5

4. 1 Objectivesand Key Results
2016 20182017
201
9
SAFe® Elements
OKRs1
Companywide Backlog
Agile Delivery Model
Scrum
AmountofAPIoperations
OUR DELIVERY MODE STARTED WITH AN AGILE
TRANSFORMATION
2019 2020
3
Anastasija Nikitin, 08/20/20, Commerzbank AG

5. CUSTOMER INTERACTIONS
AND RELATIONSHIPS ARE
TRANSFORMING
A MINDSET
CHANGE IS
NEEDED
UX is key differentiator– customers expect
best-in-class user experiences
Customer behavior pushes banks for change
New entrants disrupt banking industry
Banking industry becoming more driven by
technology
Customers have power, not companies (pull
vs. push)
4
Anastasija Nikitin, 08/20/20, Commerzbank AG

6. EcosystemsTraditionalBanking
Open API
…WE NEED TO PARTICIPATE IN
ECOSYSTEMS
TO STAY RELEVANT…
5
Anastasija Nikitin, 08/20/20, Commerzbank AG

7. 1. Focus on internal
efficiency with API
3. Open Banking and beyond
2. Open Banking with
selected users
FROM INTERNAL EFFICIENCY TO OPEN
BANKING
6
Anastasija Nikitin, 08/20/20, Commerzbank AG

8. HUNDREDS
of corporate API events
w ith thousands of
employees
API-related
communities
API education
videos
DIFFERENT
MEASURES
TO
EDUCATE
THE BANK
ABOUT APIS
MORE THAN A
HUNDRED
7
Anastasija Nikitin, 08/20/20, Commerzbank AG
DIFFERENT
employees trained
during several API
education sessions
A DOZEN
OF
THOUSANDS
of API mails
distributed

9. 1. Stakeholder
Roundtable
2. Commitment on
deliverables
3. Aligned process
on use cases
COMMITTING THE BANK
Main challenges
• A common understanding of
existing opportunities
• Transparency about
initiatives
• Coordination of budget and
resources
• Use of pragmatic prototyping
options
• Cross-segment decisions
8
Anastasija Nikitin, 08/20/20, Commerzbank AG

10. Provide banking products
and services in existing
and new ecosystems.
Provide additional value
and solve pain points.
MUST be geared around
customer journeys and
needs
Ecosystem
Participation
3Integrate partners, to
deliver targeted added
value for customers and
reduce the time needed
to provide new solutions
Partner
Program
2
OUR PATH TO ECOSYSTEMS
Build APIs to offer
banking products and
services for third parties
to use in their products
and services, or for end
customers to integrate in
their processes
Open API
1
9
Anastasija Nikitin, 08/20/20, Commerzbank AG

11. HOW A PARTNER PROGRAM CAN
BENEFIT A BANK
Coordinate
ecosystem
players
Increase
network
Organise
ecosystem
interactions
Improve
customer
retention
Increase partner
engagement
Build
rapport
Case studies,
references
API features
and roadmap
Make products
stickier
10
Anastasija Nikitin, 08/20/20, Commerzbank AG

12. PARTICIPATION IN ECOSYSTEMS IS KEY
APPROACH
› Gather first experience
› Bring additional revenue
› Identify next areas to extend
participation
Identify areas where touchpoints with
the customer exist, e.g.
› Home
› Education
› Tax
› B2B Services (Trade Finance)
BENEFITS
New
Home
1
4
5
7
8
9
10
11121314
16
17
19
20
21
22
23
24
25
Bank
Partner /
Customer
Third
Parties
6
15
26
18
Provide banking
products and services in
existing and new
ecosystems. Provide
additional value and
solve pain points. MUST
be geared around
customer journeys and
needs
ECOSYSTEM
PARTICIPATION
3
11
Anastasija Nikitin, 08/20/20, Commerzbank AG

13. WHAT BANKING ECOSYSTEMS COULD
LOOK LIKE
Example: New Home
New
Home
1
4
5
7
8
9
10
11121314
16
17
19
20
21
22
23
24
25
Bank
Partner /
Customer
Third
Parties1. Consultation
2. Location check
3. Land / property search
4. Contact Agent / Owner
5. Get price indication
6. Clarify pre-financing
7. Notary appointment
8. Sign contract
9. Informationon renewable
energy
10. Consider friends‘ experiences
11. Get cost indication
12. Plan house / living
13. Compare costs
14. Employ architect
15. Evaluate homeconstruction
loan
16. Conclude financing
17. Conclude personal insurance
18. Find and employ construction
company
19. Conclude insurances
20. Find and employ craftsmen
21. Plan and instruct kitchen /
furnishing
22. Select electricity & gasprovider
23. Employ relocation service
24. Select TV- and phoneprovider
25. Engage householdhelp
26. Conclude supplementary
financing
Obligations that customer has to face when building a new house
Source: Der Bank Blog
6
15
26
18
12
Anastasija Nikitin, 08/20/20, Commerzbank AG

14. THE
TIMING
IS RIGHT
› Open Banking is here to stay
› Open Banking brings along
new way of collaboration
› Open Banking offers new
products and services with a
customer-centric approach
Let’s collaborate
Let’s build together
Let’s standardize
13
Anastasija Nikitin, 08/20/20, Commerzbank AG

15. THANK
YOU!
Anastasija Nikitin, 08/20/20, Commerzbank AG