Which APIs? which business models - A real-world guide for African banks.
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The document discusses the transformative power of APIs in the banking sector, emphasizing their role in enhancing customer experiences and streamlining internal processes. It provides insights into various stages of API adoption, relevant business models, and real-world examples from banks like Karnataka Bank and Wells Fargo. Ultimately, it highlights the importance of building an API strategy to drive growth, efficiency, and innovation in banking services.
Which APIs? which business models - A real-world guide for African banks.
- 1. Which APIs? Which Business Models? A Real-World Guide for African Banks May, 2021
- 2. Hello! Steve Lubia Christopher Davey Partner (Sub-Saharan Africa), Bring Global [email protected] [email protected] Senior Director - Solutions Architecture, WSO2 Paulo Goulão [email protected] Partner, Bring Global Speakers Host
- 3. What are APIs and how do they help in business?
- 4. Why are we using APIs? 4 Access to accurate Data on-demand by the right people
- 5. What value do they add? 5 Cut costs & grow your business Faster & cheaper workflows Increased agility 10X customer experience
- 6. What does a good API look like? 6 It works :) Flexible, reliable & easy Interoperable
- 7. How have APIs been used in the banking business?
- 8. 8 ● Karnataka Bank was focused on increasing their digital banking presence. ● Siloed systems and legacy core was a challenge. Most processes were manual. ● An API management platform enabled rapid building of standardized services for use across the bank & better integration with India’s booming financial services ecosystem. Our vision was to transform Karnataka Bank’s customer-facing touchpoints by modernizing and automating a host of processes that were crucial towards achieving their corporate goals. Partnering with WSO2 on this ensured that we had the muscle to match the mission.” Anantha Raghava, CEO and founder of Exzatech (worked with Karnataka Bank on this project) 1000x Increase in Productivity 80% Processes Modernized India
- 9. 9 ● The bank’s existing systems slowed business processes, prevented internal collaboration & wasn’t suited for secure data sharing. ● An integration platform composed of APIs connected these systems securely enabling new more richer customer experiences (e.g., payments app with real-time payment capability launched.) Real-Time On-Demand Experiences Enabled Productivity Through Collaboration Philippines
- 10. 10 We’re making people’s lives richer by embedding financial services at the moment they’re at, and delivering services to where the customer is at rather than making them come to us.” Eric Halverson, SVP, head of gateway support & services at Wells Fargo ● The bank wanted to build on it’s API capabilities and leverage the reach & capacities of its ecosystem of partners. ● Used API management software to build a common portal to make banking and data services available, and for those services to be discovered and subscribed to. ● Bank-partner collaboration delivered faster onboarding of customers enabled to perform a broad range of functions, adding to their convenience. Increased Number of Channels & Services Faster Customer Onboarding USA
- 11. What are the stages of API adoption?
- 12. 12 Internal Use STAGE 1 External Use With Existing Partners STAGE 2 External Use With New Partners STAGE 3 Stages of API adoption
- 13. 13 Internal use STAGE 1 Workflow Improvement ● Automate internal processes ● Reduce redundant processes ● Improve existing processes ● Add new channels on-the-go ● Seamless omnichannel experience Expand Customer Channels Share KYC across products
- 14. ● Help streamline common financial tasks ● Provide better data for decision making Large Corporate Customers Enhanced & automated functions 14 External use with existing partners STAGE 2 Stock Brokers, Bancassurance, Foreign Exchange Dealers Service Partners & Suppliers ● Automate and streamline data sharing ● Offer new services & options to collaborate
- 16. 16 External use with new partners STAGE 3 Private Access ● Share data & services to innovate new end-consumer use cases ● Test & optimize services with trusted partners ● Simplify partner onboarding to scale faster ● Scale new services faster to amplify reach & revenue Open Access Automated ongoing verification & validation
- 17. What are the business models relevant to each stage?
- 18. 18 Internal use STAGE 1 ● Boost productivity ● Achieve virtual centralization ● Bolster risk management Cut Costs Workflow Improvement ● Automate internal processes ● Reduce redundant processes ● Improve existing processes ● Add new channels on-the-go ● Seamless omnichannel experience Expand Customer Channels Cut Costs ● Eliminate duplicating infrastructure ● Less engineering resources needed Boost Revenue ● Launch full range of owned customer touch points ● Launch a neo bank subsidiary
- 19. 19 External use with existing partners STAGE 2 Boost Revenue ● Monetize new services ● Self-service options to buy services Service Partners & Suppliers ● Automate and streamline data sharing ● Offer new services & options to collaborate Cut Costs ● Less engineering time needed ● Outsource more non-core activities ● Help streamline common tasks ● Provide better data for decisions Large Corporate Customers Cut Costs ● Less engineering time needed ● Outsource more non-core activities Boost Revenue ● Monetize new services ● Sell banking & tech infrastructure to partners
- 20. 20 External use with new partners STAGE 3 Private Access ● Share data & services to innovate new end-consumer use cases ● Test & optimize services with trusted partners ● Simplify partner onboarding to scale faster ● Scale new services faster to amplify reach & revenue Open Access Cut Costs ● Fewer resources for partner onboarding & servicing Cut Costs ● Avoid making costly mistakes when scaling Boost Revenue ● Launch more customer-centric services with new revenue models ● BaaS/ Banking-as-a-Platform Boost Revenue ● Further amplify revenue potential of private access API business models
- 21. 21 Cut costs & do more Scale new revenue streams Onboard new customers Deliver personalized customer experiences Keep ahead of digital disruption Achieving business goals APIs 01 02 03 04 05
- 23. *Grey logo indicates limited portal accessibility, thereby complicating full assessment 23 Source: INNOPAY Open Banking Monitor - Nov 2020 Benchmark on developer portals.
- 24. What APIs are banks actually building? 24 Source: Platformable’s Open Banking/Open Finance Quarterly Reports - Trends - Q1 2021 Popular voluntarily APIs are those that drive new customer acquisition
- 25. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. “A perennial absurdity is that SMEs end up scanning their paper bank statements, only for the data to be manually re-entered into the underwriting systems of modern online lenders … open banking is starting make a real difference at the grassroots level to UK business.” Conrad Ford, CEO, Funding Options 25 Reduce “time to cash” on loans from months to minutes Applications filled in under ten minutes. 3,000 transactions shared in seconds. Risk assessed & cash dispensed in under 90 minutes. +
- 26. Value addition with rich data APIs — BBVA 26
- 27. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Embedding banking in your business — BBVA 27
- 28. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. APIs as new products — ABN Amro 28
- 29. WSO2 Inc. Copyright © 2020 All rights reserved. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of WSO2. Establishing clear business value — ABN Amro 29
- 30. What have our learnings been?
- 31. Don't be scared to share data Compliance alone doesn't grow your business Quickly adopt & test new approaches Lessons from global deployments 31 Build an API business strategy (not an IT strategy) Get the platform fundamentals right Reliability & flexibility are key
- 32. What does it take to get going?
- 33. wso2.com Thanks!