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©2015 Apigee Corp. All Rights Reserved.
Workshop: Financial Services Use Cases for APIsJeremy Brown, Apigee@tenfourty
2©2015 Apigee Corp. All Rights Reserved.
Were you expecting API Best Practices from Apigee?• As this is a Financial Services event I decided to walk through a few use
cases for APIs in Financial Services instead!• Have no fear, there are have
– APIs for Dummies – basic intro to APIs– The Definitive Guide to API Management – THE definitive guide!– And many more eBooks! - http://apigee.com/about/resources/ebooks
3©2015 Apigee Corp. All Rights Reserved.
But first a quick retrospective: WHY APIs?
4
Digital is transforming every business
Nature of Market
Retail
Music
Cars
CPG
Books
Food
CleaningServices
Consulting
Mining
Weightless
Intermediate
Nature of Product
2000s
2030s
Heavy
B2CB2B2CB2B2020s
Source: Gartner - CEOs and CIOs Must Assume That Every Industry Will Be Digitally Remastered, 2014, Raskino
5©2015 Apigee Corp. All Rights Reserved.
Those who fail to adapt to change
Those who adoptthe technology
Those who (re)build their
business around the change
Technologies haveThis hashappened before
changed the market context
©2015 Apigee Corp. All Rights Reserved. 6
liberated data +
agile platform technology
+ vibrant developer
ecosystem
= platform business
How does a 100+ year old company become a platform business?
data
What does a 100+ year old company have?
Speed up while preserving existing investments
7
Backend
Intelligent Digital Business Platform layer
SOA / Middleware layer
System of RecordYe
ars
Mon
ths
IT Applications Partner Apps Mobile Clients "Internet of Things"
Days
Database
API EXPOSURE
API CONSUMPTION
©2015 Apigee Corp. All Rights Reserved.
Mega trends in consumer banking
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Agility in application development and digital
• 2 Speed IT – increased agility to deliver functionality without compromising availability
• Scaling and securing infrastructure and applications
• Consolidating applications
Threat of substitution – fintech disruption stretching well beyond payments
• Digital Banks, Marketplace Lenders, Crypto-currencies, Roboadvisors
• Payment landscape continues to evolve
The ever changing technology landscape
• Chairman of large European bank believes bank’s future lies in as a software company competing with Amazon Apple and Google
• Ubiquitous connectivity, open architecture and user-centered design is transformational
• Big Data, Cloud computing, Mobility, Social Media and APIs are changing the landscape of what is possible with technology
Changing consumer behavior, expectation around customer centricity
• Expectation from digital is more than before
• Digital is key for service and sales
• Omni-channel and hyper personalized experience
Privacy and security will draw increased scrutiny from consumers and regulators
• Digital authentication measures are evolving – Biometrics
• More security features will be needed to reassure customers
©2015 Apigee Corp. All Rights Reserved.
Key technology strategies to respond to these imperatives
9
Improve infrastructure and security
• Optimize infrastructure with public / private cloud and virtualization• Consolidate applications and infrastructure• Enhance end-to-end security
Data & analytics foundation and wins
• Infrastructure and COE• Operationalize insights
Agile delivery model:Two-speed IT
• Boost innovation + efficiency• Agility, speed, scalability
Enhance digital foundation
and key capabilities
• Drive seamless and sticky customer experiences• Architect for building a digital ecosystem around your services• Mobile payments innovation
Financial services firms are evolving to an API based architecture to address some of these objectives
©2015 Apigee Corp. All Rights Reserved.
The value proposition for APIs and an API based architecture
10
Foundation for accelerating Digital
development – 2 Speed IT
API Banking as a Channel to scale
innovationAPI based Financial Services solutions
• Increase agility of digital and IT teams by decoupling systems of records and systems of engagement.
• Increases time to market of of digital offerings
• Increase customer experience measures
• Scales innovation through ecosystem of fintechs, developer communities
• Scalable, secure infrastructure• We have helped our customers
across industries innovate using this model, build new service offerings and increase revenue.
• Quicker time to market with API based Emerging Payment solutions, Digital Banks and emerging models in Credit and Wealth management
• We are investing in inter-operable APIs, implementing standards to decrease the on-boarding time of emerging payment solutions for our customers.
©2015 Apigee Corp. All Rights Reserved.
a holistic approach from identifying value to defining the new digital operating model
11
APIsUsers Apps Developers API Team Back-end
Intelligent API PlatformDigital strategy planning and change management
Rapid prototypingBuilding scalable infrastructure on private and public clouds
Expert services & hackathons
Customer facingapps
Internal users
©2015 Apigee Corp. All Rights Reserved.
Financial Services are building a platform to create connected experiences for their customers faster and at scale …
Digital Banks and Monetization of data
PFM, card linked offers
Develop alternate models in Lending
P2p lending, alternate decisioning, using IoT in
equipment finance
Access control, and risk management
Reduce risk through access control, metering of enterprise
assets
Outside-in Transaction BankingBusiness to Bank integration from ERP, Treasury workstations and 3rd party apps
Alternative models in Wealth managementRoboadvisors for affluent segments
Deposits LoansInvestments PaymentsThird-party servicese.g. Health, Smart
Govt etcOther Banks 12
©2015 Apigee Corp. All Rights Reserved.
… Some are opening up an API platform to expose APIs and build ecosystems – API Banking as a new channel to scale innovation efforts
13
APIs have helped industries innovate, create new service offerings and increase revenue with this model
Can scale innovation efforts and
unlock hidden
potential in a firm
Deposit, credit, investment and payments
Fintechecosystem
External developer communities
OtherFIs
Secure,controlled
APIs
The API Banking Ecosystem
©2015 Apigee Corp. All Rights Reserved.
Leading payment companies are using APIs to create emerging payment solutions for
14
• Apple pay & other mobile wallet* integration
• In-app purchase • Card not present transactions• Check out with online
credentials
• Loyalty and offers• Pay with points• API end-points /
enabling contextual commerce
• Analytics• Fraud prevention
• Social media integration• 3rd party• Developer /fintech
ecosystems
* Inflight projects
Partners / Developers / Fintechs
MerchantsConsumers
©2015 Apigee Corp. All Rights Reserved.
Internal API economy
15
apps
developersand partners
platform technology
(APIs, apps, cloud, devices…)
data
©2015 Apigee Corp. All Rights Reserved.
API all the things - Infrastructure• Expose all of your services as self-service APIs• Abstract away
–private and public cloud – mediation– IaaS and PaaS–SDN–all parts of the Software Defined Data Center
You can’t just expose the raw APIs without adding in your own “stuff”* - build a smart façade on top.
*Authentication, Authorization, RBAC, Audit Logging etc.
16
©2015 Apigee Corp. All Rights Reserved.
Monetise your Data
• Open up your data – both internally and externally
• What systems do you use internally?– Would people pay for this?– Can you build an API in front of it and
make it a product?
17
Revenue-sharing models
(API provider pays developer)Fee-based models
(API provider charges developer) Freemium models
Fixed
FlexibleHybrid
(flat fee plus fixed or flexible)
Transaction
One-time
Subscription
Duration
Quantity
HybridTransaction
Volume
Custom Attribute
Advance / Arrears
Pro-rated / Full amount
Revenue / Volume Bands
©2015 Apigee Corp. All Rights Reserved.
Key CharacteristicsWe have learn with our customers in the field that these characteristics should be applied to all API initiatives:• Self Service & Ease of Use• Multi-Tenant Architecture • State at Scale • Security• Cloud First – Public and Private• Configuration and Code – agility wins!
18
©2015 Apigee Corp. All Rights Reserved.
Stepping up to a Platform Business
19
Project
Program
Platform
20©2015 Apigee Corp. All Rights Reserved.
liberated data +
agile platform technology +
vibrant developer ecosystem
= platform business
Thank you