2. Speakers -

3. 1. IDC insights on commercialising Open APIs to build a banking ecosystem
2. Challenges and practical use-cases to monetise open banking APIs
3. Role of API Management and Marketplace banking in productizing Open APIs
4. Overview of Concierge Bank, a complete marketplace-banking solution
Agenda -

5. Practical use-cases to monetize Open Banking APIs
Tom Zink, Research Director IDC Financial Insights
21.11.2019
© IDC

6. Barriers to the adoption of Open Banking
The biggest obstacle is
grasping the opportunities
• Is open banking just a hype?
• Do customers really care?
• Are we digging our own grave?
IS IT REAL?
• What does the open future look like?
• Where will future budgets come from?
• What is the business value/business case?
PSD2 COMPLETE, ARE WE DONE?
• Poor data quality
• Data management and governance
• The value is not in selling data, but value-
added services built on data
• Need to develop specific use cases
DATA, DATA, DATA…
• Strategic modernization vs. tactical fixes
• How to secure my data/ infrastructure?
OVERCOME LEGACY CONSTRAINTS
Copyright IDC 2019
Practical use-cases to monetize Open Banking APIs
6

7. Identify New Revenue Opportunities in the Open-Banking Ecosystem
Commercializing open APIs to build a banking ecosystem
Practical use-cases to monetize Open Banking APIs
Expected revenue
in 2019, EUR B
4-year
CAGR
Source: IDC European Digital Economy and Market Spending Guide
Digital
Platforms
Banks to sell insights to third parties to
enrich and supplement customer
experiences through the bank’s open API
platform
6.77 14.6%
Anything
as a service
Banks to offer internal technology, resources,
and capabilities as a service to the ecosystem
(e.g., KYC as a service)
2.25 43.4%
Marketplaces
Bank-owned or external marketplaces
allowing consumers to source products from
a broader ecosystem
4.33 23.5%
Cross-industrial
partnerships
Building new forms of strategic
partnerships beyond banking to enrich the
bank’s data and to deliver new service
offerings
1.50 26.0%
IDC estimates European
banks’ revenue from API-
enabled use cases to
increase from
billion
in 2019
EUR EUR
14.8 35.1
billion
in 2023
IDC #seEUR245300119Copyright IDC 2019

8. Practical use-cases to monetize Open Banking APIs
Digital Platforms
Banks to sell insights to third parties to enrich and supplement
customer experiences through the bank’s open API platform
DATA MONETIZATION
• Monetizing banks’ aggregated data to create consumer
profiles and insights on consumer behavior.
• Banks can monetize those insights through a digital
platform powered by open APIs. Businesses can use
this data to improve marketing strategies and target
offers to customers.
TRANSACTION/ACCOUNT SERVICES
• Allowing external digital players to service clients’
accounts on their behalf through open APIs to build
frictionless customer journeys.
• On top of the mandatory APIs required by PSD2, banks
can offer other premium APIs providing additional
services (such as KYC, forex, bills payment, financial
advice, and multi account management).
2019
2019
2020
2020
2021
2021
2022
2022
2023
2023
5.2
1.6
6.2
1.7
7.2
1.9
8.3
9.3
2.42.1
+10.9%
+15.6%
Source: IDC European Digital Economy and Market Spending Guide
European revenue forecast (2019-2023, EUR B)
European revenue forecast (2019-2023, EUR B)
IDC #seEUR245300119Copyright IDC 2019

9. Practical use-cases to monetize Open Banking APIs
Marketplaces
Bank-owned or external marketplaces allowing consumers
to source products from a broader ecosystem
European revenue forecast (2019-2023, EUR B)
European revenue forecast (2019-2023, EUR B)
OWN MARKETPLACE
• Bank operates a proprietary platform or marketplace
offering both internal and third-party products and value-
added services to its clients.
• Banks can leverage internal data analytics to identify the
needs of their customers, give financial advice, and offer a
convenient product (e.g., loan, insurance, utility contract).
EXTERNAL MARKETPLACE
• Product marketplaces allow customers to compare
products from multiple organizations.
• Banks can provide a seamless onboarding experience
and improve their conversion capabilities by introducing
APIs beyond the scope of PSD2 regulation.
• An opportunity for banks to approach new clients and
cross-sell additional products.
Source: IDC European Digital Economy and Market Spending Guide
2019 2020 2021 2022 2023
2.8
4.5
5.4 6.0
6.9
+25.5%
2019 2020 2021 2022 2023
1.6 1.7
3.22.4
+19.8%
1.9
IDC #seEUR245300119Copyright IDC 2019

10. Practical use-cases to monetize Open Banking APIs
Anything as a Service
Banks to offer internal technology, resources, and capabilities
as a service to the ecosystem (e.g., KYC as a service)
European revenue forecast (2019-2023, EUR B)
European revenue forecast (2019-2023, EUR B)
CORE BANKING SERVICES
• Banks can provide financial services (such as treasury and
liquidity management) to the ecosystem through open APIs.
• Banks can collaborate within the banking community on
non-competing activities such as regulatory and sanctions
requirements, KYC/AML, and ID checks.
EXTENDED SERVICES
• Anything as a service refers to a fundamentally new
value proposition, where the bank uses its own software
and operational capabilities to act as a service provider
to manage entire functional processes for the customer.
• This will allow banks to drive value for their customers
and leverage their unique position in the ecosystem to
future-proof their business.
Source: IDC European Digital Economy and Market Spending Guide
2019 2020 2021 2022 2023
2.1
4.1
6.0
7.5
9.0
2019 2020 2021 2022 2023
0.1 0.2 0.60.5
+43.1%
+49.0%
0.3
IDC #seEUR245300119Copyright IDC 2019

11. Practical use-cases to monetize Open Banking APIs
Cross-industrial partnerships
Building new forms of strategic partnerships beyond banking
to enrich the bank’s data and deliver new service offerings
European revenue forecast (2019-2023, EUR B)
EXAMPLES OF CROSS-INDUSTRIAL PARTNERSHIPS
DATA PARTNERSHIPS
• Open APIs allow banks to securely exchange and monetize
data in the ecosystem and with strategic partners.
• Banks can create new forms of partnership beyond their
industry and jointly discover new business models.
Manufacturing: Conditional
payments, trade finance, automated
claim handling using IoT.
Retail: Micro segmentation, customer
spending analytics; event-based marketing:
credit offers based on transactions.
Transport: Low-cost payments for
ticketing; airline loyalty programs; travel
planning services; delay reimbursements.
Real Estate: Exchange data with data to help
customers find and valuate real estate.
Telecommunications:
New credit scoring models,
geolocation.
Source: IDC European Digital Economy and Market Spending Guide
2019 2020 2021 2022 2023
1.5 1.9 2.4 3.0 3.8
+26.0%
IDC #seEUR245300119Copyright IDC 2019

12. • CitiDirect BE Liquidity Manager Global Liquidity Portal
• Enterprise-wide visibility of global financial information aggregated within a single service.
• Powerful analytics forecasting functionality, that is customizable at the client and user level.
• Sophisticated treasury workflow tools, like cash flow forecasting, bank account management and intercompany lending management, help customers
optimize organizational efficiency.
• Export capabilities to client TMS and ERP systems.
• Citi® Treasury Diagnostics
• Is a web-based tool to collect online responses across fundamental treasury disciplines through a 20-30 minute survey.
• Personalized benchmarking reports specific providing insights into the client’s treasury performance.
• Utilize customized results and a series of data points to identify strengths and opportunities to improve the effectiveness of firm-wide
treasury management.
• Citi Smart Match
• Partnership with fintech HighRadius to automate a key money-collection process for businesses, which applies artificial intelligence and
machine learning to the process of matching open invoices to received payments — painstaking and costly task known as "cash
application.“
• There's the potential for 60, 70, 80% of corporate’s cash application costs going away thanks to automation according to Citi.
Successful Open Banking Use Cases:
#1 Citi Corporate Bank
Copyright IDC 2019
Practical use-cases to monetize Open Banking APIs
12

13. • API Marketplace for third party APIs (Spain, Mexico, US) launched in 2017
• Global, Open API platform to:
• Provide compliance related APIs
• Provide data APIs: Card data, Socio-Economic & Lifestyle information, Paystats - Currently offered for free, but can be monetized within 30
days.
• Sandbox – Offered for free
• Launched Open Platform as a separate business unit in the US 2019
• Sandbox testing environment
• Banking as a Service platform
• Identity verification
• Move money
• Account origination
• Card issuance
• First banking product in Mexico that operates in Uber app in 2019
• Uber’s driver and delivery partners can create a digital account linked to the international ‘Driver Partner Debit Card,’ directly
receiving their earnings in a matter of minutes.
• Access a platform with financial benefits – like loans– and non financial benefits – like discounts and reimbursements for gasoline
purchases – with their driver partner card.
13© IDC
Successful Open Banking Use Cases:
#2 BBVA
Copyright IDC 2019
Practical use-cases to monetize Open Banking APIs

14. • dbAPI is an API marketplace
• Compliance related APIs
• Pay-for APIs – (Free testing and development, individual pricing once app is launched)
• “Customer insights” give access to personal data, addresses, tax related data
• “Age verification” to ensure contract compliance
• “IncomeRentCheck” to generate verified income certificate on individual’s income
• Investment portfolio
• Customer solvency
• Corporate notifications
• Corporate Account pre-validation
• Partnership with marketplace – Deposit Solutions
• Zinsmarkt marketplace allowing customers to access fixed-term deposit products from other European banks that pay
higher interest.
• Offer clients alternative investment opportunities in addition to the bank’s own products
• Increase fee income from the deposit business (fee paid by the deposit bank).
• Two billion euros of deposits have already been transmitted via Zinsmarkt.
• DB took a 5% stake in Deposit Solutions (Jul 2019)
14© IDC
Successful Open Banking Use Cases:
#3 Deutsche Bank
Copyright IDC 2019
Practical use-cases to monetize Open Banking APIs

15. • Data by itself has value, but the monetization opportunity for FIs
is in building value-added services bringing actionable insights,
analysis, and customer experiences to customers.
• Therefore start with the customer!
• Making the business case is difficult, but do not wait for others to
lead. Identify your strengths, work with customers, and leverage
the ecosystem. Everyone is in trial & error phase.
• In the meantime, focus on your homework:
• Internally: Data quality, data governance, security, privacy,
• Externally: Engage the ecosystem and work with/influence regulators.
15© IDC
Essential Guidance
Practical use-cases to monetize Open Banking APIs

17. To monetise Open Banking use cases
THE APPROACH

18. API Exposure via Developer Portal and Gateway
• Integrating APIs with your core banking systems
• Legacy system readiness and fitment of purpose for wide API exposure
• Sandbox environment provisioning for partners to plug-and-play
• On-boarding partners and other ecosystem players
• API use case test data management – automated tear-up and tear-down
• Existing system capacity to support unpredicted load through ecosystem
• Governance, privacy, security and regulatory impact of API exposure
• API business operations – pricing, ROI, revenue share, etc
• Developer Relations, support, etc
• API Marketing – Hackathons, Events, etc
Your Open Banking Journey is more than a Technology Stack

19. Open Banking App + Integrated Marketplace
PRODUCTISING OPEN APIS – REFERENCE ARCHITECTURE
Digital Marketplace(s)
API Gateway API Publisher Portal
Your customers
Partner’s offerings and
Developer Ecosystem
Partner
On-boarding
Marketplace
Digital Store
Curation and
Admin
Integration Middleware and/or Microservices, Service Mesh, etc
Your IT Landscape – Internal and External Applications
API Product Managers
API Developers
Business Operations
Partner Relations
Finance Operations
API Marketing
Tech Operations
Your Team

20. PRODUCTISING OPEN APIS – THE APPROACH
1
2
3
4
Identify new Business Models based on your core value proposition.
Establish Monetisation strategy based on One or more of Digital Platforms, Marketplaces, Anything as a Service,
Cross-industrial partnerships
Map your chosen business model to your existing capability
Such as Core Banking, Legacy Systems, etc. Identify the gaps within your IT, Processes, etc to fulfil new business models
Build or Enhance additional Capability – Products, People, Processes
API Management, Digital Marketplaces, New APIs, Microservices, New Partnerships, New Departments and teams
Establish the foundation for sustaining and growing your initiative
Establish Business Operations, Business Support, ROI Measurement and Course correction

21. API STARTER PACK
Additional APIs on top of Open Banking APIs to support Digital
Platforms, Marketplaces, Anything as a Service and Cross
Industry Partnerships
API Data model – JSON Schema
Swagger Specs for the above APIs
Integration approach guides – mapping recommendations
to Bank’s back-end systems

22. Can be configured as a Developer Portal or a Marketplace for APIs
API Marketplace / Developer Portal
Highly performant API Gateway to securely expose your digital assets.
API Gateway
Admin Interface to publish APIs and manage its lifecycle
API Publisher Portal
Highly modular, Configurable and Customizable portal to create your own digital
marketplace for Digital and Non-Digital assets.
Digital Marketplace for Platform Business
Digit-IT Services
System Integration services required to secure the value of APIs and
Platform businesses
Starter Packs / Vertical Templates
Tailor-made templates and ready-to-integrate framework and
starter-packs for Telecom, BFSI and Energy management.

23. Open Banking App + Integrated Marketplace
THE FULL LIFECYCLE OFFERING – FROM TORRY HARRIS
Digital Marketplace(s)
API Gateway API Publisher Portal
Your customers
Partner’s offerings and
Developer Ecosystem
Partner
On-boarding
Marketplace
Digital Store
Curation and
Admin
Integration Middleware and/or Microservices, Service Mesh, etc
Your IT Landscape – Internal and External Applications
API Product Managers
API Developers
Business Operations
Partner Relations
Finance Operations
API Marketing
Tech Operations
Your Team
API MANAGER
MARKETPLACE
Integration Services
and Support
API Starter Packs
(Or your existing API Management)

24. API Strategy Operate
• Conduct API business model definition workshops
• Establish API Strategy and monetization strategies
API Business Strategy Consulting
• Assess existing API initiative maturity in terms of API
Lifecycle, technology and process maturity study
• Provide recommendation and implementation path
API Maturity Assessment
• Establish Architecture principles, patterns and best
practices
• Establish API design and runtime governance
API Program Governance Consulting
• Establish API Design Lifecycle
• API Demand management and demand evaluation
process definition
• API and API Product Identification, design, API Packaging,
API Monetization and ROI Mapping
API Design Services
• API Management technology selection
• Environment setup and deployment
• Establishing operational readiness
Platform Evaluation and Setup
• API build via Agile Factory model using TDD and BDD
approach
• Continuous Delivery using DevOps
API Build and Implementation
• API runtime health-check and monitoring (Sandbox
and Production)
• Service Management
• API Product and Package management
• API Consumer Onboarding and in-life support
Managed Operations for API
FULL API LIFECYCLE OFFERING

25. DIFFERENTIATORS
Modular and Product vendor agnostic components
Advanced Analytics for Marketplace – Artificial Intelligence and Machine Learning
Products and Service Offering for single point of accountability
Designed for ease of partner on-boarding and end users.
All features are also provided as APIs to enable easy integration with your existing Apps, Websites & Systems

26. https://www.torryharris.com/products/digitmarket
Request for a free Trial at:
Your own Sandbox for free trial
Show your own branded marketplace to decision makers within a few days

27. 2 Successful Open Banking use-cases in three leading banks
3 Building value added services and improved customer experience
4 Building ecosystems / digital platforms is essential for monetisation
Summary - From Thomas Zink’s presentation
1 Revenue of € 35Billion to be realized from 4 key opportunity clusters

28. 1 Role of API Management platforms with integrated marketplaces
2
Concierge Bank (CB) – an API driven, multivendor marketplace platform solution with in-built
AI capability
3 Enabling banks to tap into the 4 opportunity clusters using CB
4 Develop new ecosystems, onboard partners and customers, offer new personalized services
Summary - From Karthik’s presentation

29. Contact -
info@thbs.com
OR
marketing@thbs.com