Business Models Based on Technological Enablers Martin Medek, Head of Open Banking at Česká Spořitelna

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BUSINESS MODELS BASED ON
TECHNOLOGICAL ENABLERS
Martin Medek
Head of Open Banking

2. Ceska Sporitelna, CZ Subsidy of the Erste Group
Founded in 1819 as the first Austrian savings bank, Erste Group went public in 1997 with a strategy to expand its retail business into
Central and Eastern Europe (CEE). Since then Erste Group has grown through numerous acquisitions and organic growth to one of
the largest financial services providers in the Eastern part of EU in terms of clients (16.2 million) and total assets (236,792 million
EUR).

3. Discovering the Open Banking environment

4. Anatomy of Money:
Value created for benefit of
others
Design of Success:
Fundamentals of how we
define and perceive value are
changing
But why to be pioneers in the Open Banking?
Psychology of Money:
How people think about
money in context of their
needs and joy
Generating and Measuring New Forms of Value

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BUSINESS SOLUTIONS

6. Where to start?
From developers to developers: developers.erstegroup.com
1200+ registered subjects
27 APIs covering 6 markets in CEE
250+ subjects in sandbox
100+ subjects in production
Runner-up in 2018 Devportal awards best CX category

7. Use Case 1 – Banking Identitiy
Ceska Sporitelna Open Banking leads digitization of the Czech population
Imagine that from the comfort of your home and without waiting, you will manage your agenda with bureaus,
apply for new ID card and documents, file a tax return, make a business contract, open a bank account or
other financial product, while:
- You do not have to learn anything new
- You do not have to buy any new device or download a new app
- And for end users it will not cost you a penny
This is how CZ bank clients can use digital banking identity:
- Pilot (“KYC API”) already running from 2018
- Full roll out in 2020

8. The client gives
consent to his/her
bank
The client is redirected
to his/her bank and
uses internet banking
credentials for
authentication
Use Case 1 – Banking Identitiy
KYC API solution
A partner needs a client
identity validation in an
online onboarding/sales
process
The client is redirected
back to the partner
and his/her identity is
successfully verified

9. REST API allowing consumers to connect to different banks.
- API allowing consumers to connect to different banks and work with their PSD2 PIS & AIS
services
- Connected to 8 CZ banks and 4 SK banks, more to come
The Platform is an enabler to reach the whole banking market in terms of PSD2 PIS & AIS,
providing services as:
- Enabling platform for online payments in e-commerce
- Enabling platform for cross-border multibanking solution
for Erste Banks
- Enabling platform for digital onboarding into bank products
- Enabling platform for real time transaction data analysis
Business model is based on subscription for the specific service, not on API calls.
Use Case 2 – Aggregation API Platform

10. The first multibanking payment button in CZ
- It allows e-commerce merchants customers to use only one payment button for purchase, no matter
what bank they have.
Value propositions for merchants
- Filling the gap between payment order and credit/debit card payment
- Lower processing prices compared to cards
- One implementation for the majority of banks in the market
- Payment links can be shared by email (e.g. utility payments), via instant message or even directly on-
screen through a QR code
Use Case 3 – New payment method “Payment From Account”

11. Business: New business
models, new ecosystems
Conclusion: Open APIs in conext of gernetating new forms of value
Technology: Bank resources
available for external users in
real time
Industry: PSD2 vs.
partnership
Customer: Data liberalization,
disaggregation of financial
services, services in time and
place of need
2024:
New business models defined
Existing markets renovated
Today:
Business models extended
Market enhancement
20XY:
Business models connecting unrelated industries?
Old markets destroyed and new markets created?
?

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Have a great day!