The Digital Age has turned blind unconnected banking clients into a smart, social and purposeful audience. Some banks have started to evolve in this new environment, using APIs to foster an open, innovation, bottom-up-culture; and some have started to focus on the essential: how to stay relevant and capture the attention of a new generation of users. The winners are those providing superior experience to their users and employees, to keep differentiating in an environment attracting new species -Tech Giants, Telcos, and new species : Neobanks, and Scale Up Fintechs. This presentation proposes a framework to discuss digital transformation as adaptation, evolution and selection of species in the Digital Age. First provided at Apidays.io London, Nov'19

1. Aboard the Beagle
Evolution of
Banks in the
Digital Age
Eric Horesnyi Apidays
London Nov’19

2. Evolution of Banks in the Digital Age
Denial Open
Banking
APIs to
drive
Change
Banking
-as-a-
Product
Bank
-as-a-
Platform

3. Eric Horesnyi
Axway
GM, APIs & Data Integration
ehoresnyi@axway.com
@apievolution

4. Banking in the 2000s

5. Fitness
Agility
Can’t fly, can’t run
Acquisition
Picking, not servicing

6. Culture
Flocking
No Innovation
Closed
No Collaboration

7. Analog Client
Communication
No network, no culture
Uninformed
Limited Senses
Expectation
Fly from preys, eat

8. Digital Client
Communication
Social
Having fun
Simple experiences, volatile
Smart
Care about their Financial Fitness

9. Environmental Change

10. What happened ? The Digital Age

11. APIs drive Selection of Species in the Digital Age

12. NeoBanks & Fintechs : New Species fit to thrive

13. Telcos getting into Banking

14. Tech Giants now adapted to the finance ecosystem

15. Digital Economy : monetize attention

16. 2 Billion People Off-Bankables in 2020

17. Facebook: 124 Patents in Wealth Management

18. Apple Wallet in Financial Wellness
Mastercard Credit Card & Goldman Sachs PFM

19. Actually, Platforms
do not compete in an ecosystem
They are the Ecosystem

20. Cache – Bank Accounts by Google

21. Google in Insurance
So much data to make any actuary dream

22. 90% Mobile Payments are Off Banks in China, in just 5 years

23. Denial

25. Open Banking: Banks opening to APIs

26. Topdown
Instructions
Vision
Engage Employees
Inspire
Centralized
Distributed
KPIs
OKRs
Projects
Products
Closed
Open
Introverted
Extraverted
Market Share
Mindshare
APIs for Cultural Change

27. Evolution of Banks in the Digital Age
Denial Open
Banking
APIs to
drive
Change
Bank-as-
a-
Product
Bank-as-
a-
Platform

28. Bank evolutions
Product Fit
Sight
Design Experience
Agile
Fast
Continuous Improvement
Purposeful
Improve
the financial fitness
of users

29. 29
Experiences that Matter
Simple, Relevant, Multi-Domain UX
IT is complex

30. • Challenge: build Customer Journeys = seamless real-time
end-user experience with fragmented IT
• Data structure, eg in private banking:
—A customer builds its financial fitness plan with
—Customer detailed information –kids, neighborhood, owner/renter, married?- in
Bank databases
—Lead management in
—Forms & emailing via
—Service Management in
—Rating provided by {The Bank Mortgage API}
—Event: an apartment becomes available for sale according to
Product Manager Retail Banking

31. Customer Service:
Prioritize Incident Management based on Customer
Lifetime Value
Integrated Customer Journey
Post Moment: young couple
looking for apartment
in Stamford, CT
{The Bank Moments API}
Get Profile
Client Database
Get Housing in criteria
Stream Updates as Patch
Event
1 apartment match
{The Bank Mortgage API}
Get Authorization based
on Profile
Create Lead
Send
Recommendation

32. Design Simple Experiences from Complex IT
Opportunity
• Build meaningful
experiences
• Attract new
audience
• Increase Attention
Time
Risks
• Vendor locking :
some Sirens seem
to offer it all: quick
race to a trap
• Security breaches
across domains
• Disjointed
Experience
Complexity
• In private cloud
• In public cloud
• Behind internal
APIs
• Behind external
APIs

34. Financial Moments
B2C Platform in Australia

36. 40% of business through APIS
B2B2C Platform with Partners
COURTIER RACHATS DE
CRÉDITS
Pre-subscription of mortgage repurchase dossier
SCORING DILIGENSE
The Share Service Center DiligenSE, operated by BNPP
PF, exposes its scoring services for all BNPP entities.
CHECK PERSON (SCAL)
Compliance API to check person status, at disposal of
BNPP entites.
GRANTING & DECISION
The way for partners to grant and have a pre-decision
for credit dossier proposal.
LOAN ORDER
MANAGEMENT
Provide to retailers the status of their credit
application and some basic operations (purchase
cancelation, order cancelation).
WS CREDIT AUTO
Support the entire process of automotive loan
subscription (quotation, upload supporting docs,
get decision,…).
FINANCEMENT EXPRESS

37. APIs : 72% of new account acquisition
New account creation by an annual growth
rate of 68.1%
Loan Origination & Wealth Management

38. Banks can also become
Digital Platforms

39. Singapore Airport – ATM Age

40. Singapore Cab – Digital Age

41. A 7-year long evolution to Agile & API-First

44. DBS Q3.19 profit climbs 15% to S$1.6b, beats estimates
Stock: from $7 to $27 over 10 years

45. “For many people in China, you could make a big difference,
because the underlying payment methods are inefficient. But
when you come to Singapore, people already just flash their
card anyway. Outside home markets, it has not been that easy.”
Piyush Gupta, CEO DBS in Euromoney May’19
“But don’t get me wrong, they are still our biggest nightmare.”

46. Platforms
do not compete in an
ecosystem
They are the Ecosystem

47. Evolution of Banks in the Digital Age
Denial Open
Banking
APIs to
drive
Change
Bank-as-
a-
Product
Bank-as-
a-
Platform

48. Thanks !
Images
Wikimedia Foundation
Britannica
Inspiration
Axway Customers
Contact
ehoresnyi@axway.com