This document discusses three important ingredients for success when implementing an API strategy: trust, commerce, and connection. It outlines considerations for ensuring data security and compliance. It also emphasizes the importance of understanding commercial models, customer engagement, and data rights when partnering through APIs. APIs require robust availability, performance, and security to support 24/7 commerce. The key is ensuring the API strategy addresses legal, business, and technical factors for long-term sustainable partnerships.

1. Date:Aug 2021
Prepared by: Richard Lord
APIs – Trust, Commerce Connection

2. 1
Objectives
• The API economy is moving to (already in?) an important next phase.
• Once fuelled largely by new and tech-led entrants, most traditional
companies are moving quickly to implement their API strategies.
• Companies appreciate that integrated business ecosystems and
value-streams create new opportunities and can speed up
commerce.
• This conference will talk a lot about the technology to make this
possible, but I want to talk about 3 important ingredients for
success:
Trust, Commerce and Connection

3. 2
APIs put your reputation out into the open…
Trust
Data Security
• All APIs will, by definition, create data flows in both directions (explicit data
and meta-data)
• Consider how this data may be used and any risks or issues if it is misused
• Consider downstream risks
Compliance
• API connectedness doesn’t take away any compliance obligations
• KYC / CDD / AML / Sanctions screening etc. still apply
• You cannot pass these obligations onto your partners, especially where you are
the end provider of services
API Security
• APIs are a new threat vector
• A misused API (or one poorly implemented) may allow a bad-actor to
access data or services they are not authorised to access
• Ensure that access controls and rights management are robust and fit
for purpose
Reputation
• Careful who you partner with
• Consider 3rd, 4th party etc. downstream relationships
• Understand that you don’t necessarily always control where your
services will be presented

4. 3
APIs are a new way of doing business…
Commerce
Opportunities
• APIs are not just a way to speed up the things you do now
• There are opportunities for new products and services
• Look “up an down the value chain” as well to see new places where your
company can add value
Commercial Model
• API connectedness facilitates an exchange of value
• Ensure that agreement on how that value is shared is set EARLY
• Consider how that value will be exchanged – is it cash or are there other
ways to generate and realise value?
Customer Engagement
• Understand and agree you role in managing the customers who use your
services
• Who does customer support? Can you support it?
• What additional rights do you have to engage those customers? What
obligations will you have if you do?
Data Rights
• Understand and agree your rights and entitlements in using the
data you generate through your engagement
• How long can you keep the data?What can you use it for? Can
you on-sell? Can your partner?
• Set out a clear data rights model and agree it EARLY!

5. 4
APIs are always on, and present new challenges …
Connection
Availability
• API based commerce is 24 x 7
• Understand and agree partner expectations for
availability, support, issues resolution etc.
Performance
• API based commerce is not a smooth, linear transaction flow
• Two important dimensions of performance:
CAPACITY andTIME
• Assess your internal systems to ensure that they will support the
volumes your partners expect
API Security
• APIs are a new threat vector
• A misused API (or one poorly implemented) may allow a bad-
actor to access data or services they are not authorised to access
• Ensure that access controls and rights management are robust
and fit for purpose

6. 5
Conclusion
• Ensure that API strategy extends beyond just the technology
• Engage and collaborate with all the necessary internal partners to drive success
• Look for new opportunities and be prepared to experiment
Don’t wait!!

7. APIs – Trust, Commerce Connection