5 ideas to Kick-Start Platform Oriented Banking

Payment Components

Sotiris NossisCEO & Founder

There is no “digital strategy” anymore just strategy in a digital world!

Payment Components

We all know that Bank silos are broken down by startups

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Fintech is Coming!

…and that FinTechs target retail & commercial

Source: McKinseyPayment Components

Segments targeting by FinTechs

…and all these “contenders” thrive in ecosystems

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The world of APIs

So how can / should a traditional bank respond to all these changes?

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Multiple models for FinTech adoption

Different approaches for different banks

Source: IBM – “Designing a Sustainable Digital Bank”Payment Components

But all approaches should have two common fundamental ingredients…

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Partner with Fintechs to approach new customer

segments and gain vital technology and entrepreneurial flair.

Payment Components

1

Start becoming a Platform exposing vital APIs

of your services

You will do it anyway for PSD2, why not start earlier?

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2

Only then you can start discussing &

planning ideas such as…

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Retail BankingPersonal Finance Management (PFM) & Robo Advisor

Objective: Surprise the market and lock your

mobile customers providing today, advanced account information and advices. Well ahead of the PSD2 go live.

Action: Create a PFM – PSD2 compliant - mobile

App. It can be both an account aggregator & robo-advisor on cash management.

1

Payment Components

Alternative PaymentsmWallet & multiple payment schemes

Objective: Be part of the P2P and m-wallet wave

and offer your customers other alternative payment schemes.

Action: Create your own or be an active

participant in a m-wallet project. Enable frictionlessMobile Payments & Money Transfers, supportingmultiple touchpoints (e.g. POS, Web, Mobile App)and Redemption Mechanisms (e.g. Coupons, Tokens)

2

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Corporate BankingAutomate Payments & Enforce Compliance

Objective: Provide corporates with automated

credit transfers, Direct Debits, account balances through SFTP or APIs to improve their cash flow handling

Action: Connect with existing TMS solutions

and/or offer your own Treasury Management System for forward thinking Corporates. Support Financial Messaging Standards (SWIFT, SEPA or other), allowing automated Payments receipt & response.

3

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Build your own ecosystemCombine your established strengths with the flexibility of FinTech

Objective: Leverage your core strengths to

attack new markets

Action: Start your own satellite banking.

Experiment with agile and niche digital bankingsubsidiaries. Foster innovation through opening upyour API to developers. Partner up with FinTechstartups.

4

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Disruptive Innovation in Stealth mode…Explore BlockChain opportunities

Objective: Understand the current blockchain

trends starting a small R&D project. This way youstay close to developments, attract talent, and whoknows, you may even cut significant costs.

Action: Select back-office process(es), that need

to be disrupted or abolished altogether. Start a R&Dproject (with internal & external resources) to delivera solution based on BlockChain

5

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Then and only then, on your Digital Initiatives Matrix…

Source: DeloittePayment Components

Clients OR Markets Vs. Products OR Services

…you can plot these digital initiatives and more

Satellite banking

M-Wallet

PFM

Corporate TMS BlockChain

Source: DeloittePayment Components

Indicative mapping – this needs to be specific according to your activities

Interested?Payment Components is your

Digital Transformation Partner

Payment Components

We master standards, and new FinTech offerings Three lines of business. Software Components, FinTech Solutions, building new innovative services.

1 2 3

Financial Messaging Libraries for

SWIFT, SEPA & ISO20022 standards

Software Components

1. Treasury Management

2. Payments System

3. BankNotes Trading

FinTech Solutions

1. Bespoke Projects Development

2. Our own Innovative Ideas

Innovation + R&D

Payment Components

64 Princes Court , 88 Brompton Road , Knightsbridge, London SW3 1ET, United Kingdom | Tel. : +44 2071172538 | www.paymentcomponents.com

Empowering FinTech Innovation!

@paymentcompnossis.sotiris@paymentcomponents.com