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Banking-As-A-Service in Treasury Management Millicent Calinog, SVP Treasury Management API Product Manager
MN AFP
April 26, 2016
© 2016 Wells Fargo Bank, N.A. All rights reserved. For public use.
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Agenda
What is Banking-As-A-Service (BaaS)?
What are Application Programming Interfaces?
What does it mean for you and why should you care about BaaS and APIs in treasury management?
Banking-As-A-Service (BaaS): A new channel for you to access banking products and services
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BaaS: A new distribution channel
Allows you to Use JSON/REST standards and
receive banking services over the internet, i.e., from the cloud
Have real-time access to Wells Fargo data and functions for your use
Pick and choose which functions to use
Automate access to banking services
Banking from the cloud
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BaaS: A new distribution channel
Supplements – does not replace – existing channels
Branch ATM PC – Home banking
Portal – Online banking
Mobile banking
Banking as a service
Allows your systems to use treasury management services & data whenever, wherever you need, instead of making you come to us, e.g., sending us files, accessing sites, asking us for information
Can eliminate persons logging into banking portal to access bank services/data
Gives you more choices: use our services within your choice of UI, software, context, workflow, etc.
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How can you benefit from Banking-as-a-Service?
Validate bank account information of the recipient of your payment
Allow your back end systems to communicate directly with your banks’ back end systems
Receive bank data real-time
Capture a more current, up-to-the minute, cash position
Migrate away from batch processing
Increase customer engagement through existing mobile channels
Accept mobile payments from your customers through your mobile app
Implement a non-password method of authentication for your customers’ access to your digital channels
What is an API?
API
App
licat
ion
Prog
ram
min
g In
terf
ace
Banking-as-a-service
Real
-tim
e
Instructions
Developers
data
api perform
task
Channel
soft
war
e
Immediate
Resp
onse
System
Efficiencies
Release
Leve
rage
Port
al Services
Functionality
Imbed
send
users
Standards
deve
lopm
ent
documentation
acce
ss
Simple
Provide
REST / JSON
usef
ul
example
interface pow
erfu
l
SDK
expose
users
mobile
Communicate
tools
data
web
info
rmat
ion
SD
K
cons
ume
8 8
Enables direct & real time communication between back-office systems e.g., corporate-to-bank or bank-to-cloud ERP – easier for you to:
Teach your IT and support Use Implement Receive enhancements
Set of programming instructions
Lets one software application ask another to perform a task or a series of tasks
Application programming interface (API)
Always on and performing real-time e.g., email vs. instant messaging
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API =
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Companies that use or provide APIs Google Uber
Netflix Salesforce.com
Enables unbundling products offerings
Customers can pick and choose which capabilities to use within their own business processes
Why Application programming interfaces (API)?
Companies can expose an API so others can use to design capabilities rather than developing themselves
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How APIs are used
Like a LEGO city, companies often build their product offering by combining products and services from a variety of other companies
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How APIs are used
API
API
API
API
API
LEGO and the LEGO logo are trademarks of the LEGO Group. ©2015 The LEGO Group. All rights reserved.
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How companies use APIs
Uber uses services from a variety of other companies via APIs
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Facebook, Google and PayPal each wrote a block of code which allows Uber to use a select portion of their product or service. API
Why should you care about BaaS and APIs?
API App
licat
ion
Prog
ram
min
g In
terf
ace
Banking-as-a-service Re
al-t
ime
Instructions
Developers
data
api perform
task
Channel
soft
war
e
Immediate
Resp
onse
System
Efficiencies
Release
Leve
rage
Port
al Services
Functionality
Imbed
send
users
Standards
deve
lopm
ent
documentation
acce
ss
Simple
Provide
REST / JSON
usef
ul
example
interface pow
erfu
l
SDK
expose
users
mobile
Communicate
tools
data
web
info
rmat
ion
SD
K
cons
ume
17 17
How you can benefit from BaaS and treasury management APIs
Mitigate risk Automate treasury operations
Enhance customer experience
Improve customer service
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Automate treasury operations – today…
End of Day 1 End of Day 2
Bank Status Origination
Consolidated Payables File
Channel
Today, companies wait until the end of the day to send consolidated payables files that contain a batch of ACH payments that have been gathered throughout the day
Clearing House
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Automate treasury operations – tomorrow…
Using APIs, individual ACH payments can be sent over as they occur throughout the day. They are then batched by a bank and passed through to the necessary clearing network. This allows you to get payments off your desk and receive periodic status updates as the individual payment is processed.
End of Day 1 End of Day 2
Bank
Status
API
Bank
Origination
Status
API
Bank
Origination
API
Bank
Origination
Status
Clearing House
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Risk mitigation – validate your payees and their bank accounts
Credit Check
API Customer Name
XXXXXXXXXXX
Bank Account #
XXXXXXXXXXX
National Bank Account database Real
Time
Delayed Response
Social Security Number
XXXXXXXXXXX
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Improve your customer service
Customer Call Center Site or System
Online Banking Portal
*A bank can host and makes available in real-time thousands of images of paid items and invoices
Customer Call Center Site or System
API
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Increase customer engagement using your mobile app
Pay Using Your Bank
Welcome to Rancho Smith Mall!
Scan a Receipt
Latest Mall Offers
Store Map
Schedule an Appointment
Track Mall Loyalty Points API
API
API
API
API
API
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Now what?
Ask questions about what you learned in this session.
Think about your Treasury Operations today – what challenges that you are facing might be solved with real-time interaction with your bank? Talk to your Treasury Management Sales Consultant about TM challenges you are facing that might be solved by using APIs
Thank you!
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