Open Banking & APIs: A Selection of Use Cases
Drivers Regulatory PSD2 Open Banking Commercial Deepen relationships Customer stickiness Enhanced understanding of customers financial lives Profit-share/referral opportunities Better fraud/risk/credit management http://nordicapis.com/fintech-and-apis-making-a-bank-programmable/ 2
Why Openness? According to Stefan Weiss, Head of APIs at Fidor, the bank decided to build its platform with third-party developers in mind for the following reasons: A bank API supports a quicker onboarding experience for end users An API enables a bank to acquire partners that specialize in niche fintech services with optimized front-end user interfaces A bank API allows seamless integration with banks-as-amarketplace, payment, investments, and accounting apps, and more great for startups with innovative financial-oriented products that may lack the budget and legal counsel to hold funds or establish their own bank An open API is a way for new banks to attract more customers, more deposits and more transaction volumes http://nordicapis.com/fintech-and-apis-making-a-bank-programmable/ 3
Fidor Bank The Fidor Operating System (fos) is an open digital banking platform built to integrate legacy and modern fintech systems via a managed API gateway. Banking as a Platform White Label Bank Payments as a Service 4
BBVA API Market Accounts allows you to access key account data and enhance financial management services. Payments allows third party apps to offer money transfer services to pre-authorized users. PayStats allows third parties to access BBVA cards purchase data. Customers lets you easily create, retrieve and update customer records in our banking core. 5
Bud Account Aggregator Bud is a website and app that connects your bank accounts and credit cards in one place. The platform connects users to additional financial products and services such as pensions, insurance, currency exchange, investments, savings, mortgages and more. Cross-selling 6
Penta SME Bank Penta has partnered with solarisbank, a white-label banking platform, to offer businesses fast access to bank accounts. Penta s business customers will be able to sign up for a bank account within minutes, giving them access to a deposit account and payment cards. Customer acquisition engine? 7
Railsbank API Platform Via the Railsbank API, fintechs can access banking services including creating digital ledgers, connecting digital ledgers to real bank accounts, issuing IBANs for ledgers, receiving money, sending money, converting money (FX), collecting money (direct debit), issuing cards, and managing credit. Access to global banking in 5 lines of code. 8
Xero Accounting Cloud-based SME Accounting Xero is online accounting software for small businesses. Use Xero to manage invoicing, bank reconciliation, bookkeeping & more. Xero offers an API to allow third-party apps to query companies accounting data and leverage it for a range of business uses. How long until a bank integrates with Xero? 9
Acorn Automatic saving Acorn connects with your bank accounts via API to monitor your spending, round up purchases and investing the excess automating your saving and helping you achieve financial heath. Savings/investments automation & financial health 10
Fino Account Switching Service In the UK, the Current Account Switching Service automates account switching. Not all countries have this service. Fino allows customers to switch bank accounts (open new account, move direct debits, notify payees and senders) via an API-powered app. Account switching 11
Debitoor Accounting and Invoicing Simple, cloud-based billing and accounting software for freelancers, small businesses and the self-employed. Covers all important functions, from preparing quotations to VAT returns. Using figo, the user can integrate bank accounts directly into the accounting program. Bank & accounting integration 12
Fincite Investing Solution Via API, Fincite offers access to over 120 algorithms for individually chosen recommendations for savings and investment. Fincite can analyze a customer s financial situation in its entirety and offer a personalized savings and investments action plan. Bespoke investments for mass market 13
O2 Banking Telco Bank Telefonica-owned O2 became the first mobile operator to launch a mobile-only bank account, in cooperation with Fidor Bank. The account offers mobile banking transactions, including via mobile phone numbers, small instant loans, a MasterCard debit card and free data credit for users. Telco Bank with no need for license 14