INTERFACE, by apidays - APIs: the next 10 years June 8, 9 & 10 2022 The story of API In Open Banking UK Chris Michael, Co-founder & CEO at OzoneAPI ------------ Check out our conferences at https://www.apidays.global/ Do you want to sponsor or talk at one of our conferences? https://apidays.typeform.com/to/ILJeAaV8 Learn more on APIscene, the global media made by the community for the community: https://www.apiscene.io Explore the API ecosystem with the API Landscape: https://apilandscape.apiscene.io/ Deep dive into the API industry with our reports: https://www.apidays.global/industry-reports/ Subscribe to our global newsletter: https://apidays.typeform.com/to/i1MPEW

1. The UK open
banking story.
© Ozone Financial Technology Limited 2022

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3. What we’ll cover.
1. Introduction
2. The birth of UK open banking (and role of the OBIE)
3. Developing the OBIE standard
4. Monitoring (performance and adoption)
5. Use cases
6. What’s next?
7. Lessons learned
8. Q&A

4. Hello.
Chris Michael
Chief Executive Officer
With a 30 year career building technology
companies, Chris has founded a highly
successful digital agency and established the
internal digital practice at Reckitt Benckiser.
Chris led the development of the UK open
banking standard as CTO at the UK Open Banking
Implementation Entity (OBIE). He chaired the
OBIE standards forum and technical design
authority, and represented OBIE at the European
Banking Authority.
Huw Davies
Chief Commercial Officer
Bringing over 25 years’ experience in payments and
financial services. Huw is former Global Head of
Payments at HSBC and Head of Emerging
Payments at MasterCard, with a successful track
record delivering global go to market strategies and
revenue growth.
Huw led the growth of open banking in the UK as
Ecosystem Development Director at OBIE. Prior to
this he also led growth at Token in his role as Chief
Commercial Officer.
Freddi Gyara
Chief Technology Officer
A career technologist with over 25 years’
experience as a lead developer, enterprise
architect, coach and mentor. Freddi brings deep
experience having been the technical lead on
large digital transformation programmes across
Banking (Lloyds), Telco (Vodafone / BT / Telstra)
and Government (India and UK) initiatives.
Freddi was the lead technical architect at OBIE,
and the lead technical author of the UK open
banking standard.

5. Ozone’s mission.
Accelerating open banking & finance by:
Providing technology to help banks
and financial institutions deliver
great, standards based APIs.
Providing central players
with expertise and technology to
build a thriving ecosystem.

6. Open banking is the biggest
change to banking EVER!
It is a global phenomenon, with open banking initiatives happening on every continent.
→ Banks MUST implement open API’s, driven by both regulation AND commercial need.
→ Doing it well will be a game changing opportunity BUT doing a bad job creates an existential
risk for banks.
of banks traditional retail product revenues
streams at risk (if not done well)
boost to banking revenues from open API
enabled services
increase in overall organic
banking growth
10% 55% 29%
Source: https://www.accenture.com/gb-en/insights/banking/open-banking

7. Open banking/finance is global.

8. The birth of UK open banking.

9. Role and remit of the OBIE. PSD2
All online payment accounts
All ASPSPs in UK/EU
No mandated standard
CMA Order
Personal/SME current accounts
CMA9 only
Single mandated standard
User/Market needs
All FS products (open finance)
All FS providers
Regulatory + Premium APIs

10. UK implementation timeline.
2017 2018 2019 2020 2021 2022 2023
2016
Sep 2016
Formation of OBIE
Mar 2017
UK open/public
data standard
published
Jan 2018
PSD2 comes into
force in UK and EU
Mar 2018
RTS published
Sep 2019
RTS comes into
force (all UK/EU
banks due to be
live)
May 2022
Smart Data
Initiative
announced
TBC
Open Finance
regulations &
standard?
Dec 2020
UK RTS comes
into force
Jun 2017
UK API standard
v1.0 published
Sep 2018
V3.0 published
Mar 2020
1m customers
Sep 2020
2m customers
Feb 2022
5m customers
Mar 2022
V3.1.10 published
(final CMA order
version)
Feb 2018
V2.0 published

11. Building the consent model.
Customer
Bank Third Party
1
2
4
3
1. Customer decides to use third party service
2. Third party asks for consent to access account
a. Account information (AIS)
b. Payment initiation (PIS)
c. Funds confirmation (CBPII)
3. Third party sets up access request at bank
(based on consent parameters)
4. Customer authenticates via bank app / website
to authorise (redirect or decoupled)
5. Third party accesses data / payment
5

12. The UK standard (beyond API specs).
Security Profiles
● Developed together with
and managed by the
OpenID Foundation
● Based on OAuth and OIDC
● Support redirect (FAPI)
and decoupled (CIBA)
● Determines the security
model for connectivity and
consent
Functional API Specifications
● Account Info & Trans (Read)
● Payment Initiation (Write)
● Funds check
● Event Notification
● Dynamic Client Registration
● Covers all PSD2 accounts
● Modular and extensible
Customer Experience Guidelines
● Designed to combine
regulatory requirements and
user experience best practice
to help third parties and
account providers deliver a
great CX and avoid
unnecessary friction
● User journeys and wireframes
for use cases
● Redirect and Decoupled flows
Operational Guidelines
● Helps account providers
implement effective and
high-performing APIs
● Reporting templates for
availability and performance
● Covers design and testing,
problem resolution and change
management
https://standards.openbanking.org.uk/api-specifications/

13. The OB directory (trust framework).

14. Ecosystem support.

15. Model bank (the Ozone sandbox).

16. Monitoring (the CMA9).

17. Availability (CMA9 weighted average).
CMA 9 banks. Source: https://www.openbanking.org.uk/api-performance/
2020 2021 2022

18. Performance (CMA9 avg response time).
CMA 9 banks. Source: https://www.openbanking.org.uk/api-performance/
2020 2021 2022

19. Conformance (OBIE and FAPI profiles).

20. Adoption (CMA9 total API calls).
CMA 9 banks. Source: https://www.openbanking.org.uk/api-performance/
2020 2021 2022

21. Adoption (CMA9 total payments).
CMA 9 banks. Source: https://www.openbanking.org.uk/api-performance/
2020 2021 2022

22. 5 years of open banking in the UK.
1st
major market to
implement in 2017
215
authorised third
party providers
79
account
providers
5.8b
API calls
in 2021
>4m
Payments
in 2021
>5m
active
users
Source: https://www.openbanking.org.uk/news/5-million-users-open-banking-growth-unpacked/

23. Use cases.

24. Personal financial management.
The most obvious use case is personal
financial management – to allow
customers to see and manage all of their
accounts in one place.
Major banks and fintechs are working
together to deliver solutions that help
increase savings, reduce debt and make
money management easier.

25. Accounting platform integrations.
Cloud based accounting platforms are
driving the largest volumes of open banking
API usage in the UK.
Open banking enables easier integration of
banking data into accounting platforms,
helping businesses save time and improve
accuracy.
Partnerships between banks and accounting
platforms will see new API based payment
and lending solutions built into invoicing.
https://youtu.be/TUMIDs-BuTE

26. Driving increased lending.
Lenders are using open banking to access
more data and improve both the application
process and credit risk decisioning:
● Calculate affordability
● Verify income
● Assess credit risk
Particularly during the covid crisis where
traditional credit scoring models are less
effective at predicting repayment.
This is resulting in lower cost and higher
credit acceptance rates.

27. New ways to pay.
https://youtu.be/JnoZKcxDANE
Payment initiation API’s combined with Faster
Payments offer a better UX (lower friction and
increase conversion rates) and increase the
speed and reduce the cost of receiving
payments. Example use cases include:
● Charity payments
● Wallet load
● Bill payment (one time and recurring)
● Subscription payments
● One-click ecommerce
● Instalment options
● POS payments
● B2B invoicing (instant payment,
recurring, instalment etc)

28. What’s next?
“Data is more valuable in the
presence of other data”
Shelly Palmer
Open Banking
5 years old and >5m
active users
Open Finance
Under review by HMT
and FCA
Open Data
SmartData announced
in Queen’s speech
Premium APIs
Banks & TPPs starting
to implement (VRP/ID)

29. Lessons learnt from the UK.
1. Open banking works
● It’s a major driver of
innovation in fintech
● A catalyst for banks to
modernise their tech
● Delivering real value for
personal and business
customers
● Many other markets now
copying UK (important to
not just copy & paste)
2. It’s not easy
● 5 years, 200+ workshops
and 14 versions to develop
the standard
● Largest banks made poor
tech choices and spend
£m’s
● Needed significant
support plus regulatory
pressure/oversight
● Conformance &
certification essential
3. This is just the start
● UK banks now starting to
see the benefit (partnering
with and/or launching own
TPP services)
● Premium APIs will deliver
additional customer value
● Open finance and open
data economy coming
● Other markets have an
opportunity to build on
and improve

30. For more information, please contact:
chris@ozoneapi.com
© Ozone Financial Technology Limited 2022
Thank you.
Any questions?