1. The Connected Business & the API
Economy: Challenges & Opportunities
Rana Peries
Head of Innovation & Digital Financial Services Technology, Asia
Commonwealth Bank of Australia

2. Welcome to the API Economy
The API Economy is the economy where
companies expose their business services in
the form of APIs to external parties in order
to generate additional revenue

3. Customers are demanding a more personalised
service, integrated into their lifestyles
Source: Forrester Research Inc. Next Generation Financial Services
Simple: Make it easy for customers to achieve their goals.
Ubiquitous: Interact with customers wherever they want.
Personal: Make the entire experience relevant to personal needs.
Empowering: Enable customers to take action by themselves.
Reassuring: Provide human help whenever it adds value.

4. Disruption and disruptors
Taxi industry – Allows passengers to
easily find and book taxi services providing
a better deal for the passenger and taxi
Hotel industry - Allows owners of houses
and apartments to easily find and connect
with potential short term renters
Banking & payments industry – Allows
people to use airtime as a payment
mechanism
$2.5 B

5. In the connected economy, customers have a greater
choice. Should the businesses be concerned?
Source: McKinsey Quarterly, November 2005
According to McKinsey & Co., high-potential customers acquired at
age 30 and remaining loyal throughout their active lifetime are
worth 30% to 70% more than the high potential but non-loyal
ones, whose value to the bank gradually erodes or who eventually
leaves the bank all together.

6. What is the Connected user experience consumers are
looking for?

7. Monetizing the APIs – API business models
API enriches the product & content. API
is free to use
API is the core value or the product. The
user pays a transaction fee based on the
usage.
The API promotes the product as in the
Expedia affiliate program and improves
distribution
The API provides an alternate way to access
the product and improves the distribution
$1.5 B
$2 B

8. APIs that aggregate businesses• Google Now?

9. Winning in the API Economy
Gartner predicts 75% of Fortune 500 enterprises
will open an API by 2014. In this new API economy,
those without an API strategy will be left behind.

10. Winning in the API Economy
Product centric to Human Centric
Value chain to Ecosystem
IT systems complexity
Security concerns
Regulatory environment

11. Business
Services
Business
Services
Business
Services
Enabling the Connected Business - Architecture
LOB Systems
(Banking)
LOB Systems
(Insurance)
LOB Systems
(Investments)
Business Services and Business APIs
Business Systems Integration (WSO2 ESB)
LOB Systems
(Banking)
LOB Systems
(Insurance)
LOB Systems
(Investments)
Business Services and Business APIs
Process Orchestration (WSO2 Business Process Server)
Security & Management (WSO2 API Manager & Identity Server)
Business Services and Business APIs

12. Connected innovation at CBA• Google Now?