1.
The smart move in open banking™
Driving revenue opportunities through
Open Banking
Todd Clyde, CEO

2.
The smart move in open banking™The smart move in open banking™
Agenda
1. About Token
2. Current state of readiness
3. Live use cases
4. Improvements required for mass adoption
5. Revenue generating propositions

3.
The smart move in open banking™
The smart move in open banking

4.
The smart move in open banking™
A marketplace is a two sided problem
Demand Supply
Third Parties Banks

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The smart move in open banking™
And Requires a 2 Sided Solution
APIsAccess to Banks

6.
The smart move in open banking™The smart move in open banking™
To power the next
generation of financial
applications…
... by putting a bank in
every app
The smart move in open banking™

7.
The smart move in open banking™
Current State of Readiness - UK
● 13 January 2018 deadline
● 46 Banks Live
● 165 TPPs Registered
● 140M Transactions per month
● 99.9% are data transactions
13 Jan 2018

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The smart move in open banking™
API calls achieve 140M per month in the UK
2018 | 2019

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The smart move in open banking™
14 March 2019
● Secure APIs
● Sandbox environment
● Documentation & support
Current state of readiness - EU
14 September 2019
● Operational APIs
● Production environment
● Compliant with RTS and SCA
● eIDAS acceptance

10.
The smart move in open banking™
92% Research
● Published plans of APIs and sandbox
● Determination of standard
● Variations to the standard
92%
8%
API & Sandbox
Available
Not available
Pan European Accessibility as of 14 March 2019

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The smart move in open banking™
Verified accessibility of sandbox by country
88%
12%
Accessible Not Accessible
88%
9 of 9 100%
16 of 16 100%
6 of 6 100%
17 of 17 100%
15 of 15 100%
27 of 28 96%
15 of 16 94%
7 of 8 88%
6 of 7 86%
4 of 5 80%
7 of 9 78%
3 of 4 75%
12 of 16 75%
70%
Benelux
France
Germany
Ireland
Italy
UK
Spain
Estonia
Austria
Finland
Sweden
Denmark
Poland
CBI Globe

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The smart move in open banking™
Verified operational sandbox by country
77%
23%
Operational Not Operational
77%
27 of 28 96%
14 of 15 93%
8 of 9 89%
6 of 6 100%
4 of 5 80%
12 of 16 75%
12 of 16 75%
70%
6 of 9 67%
11 of 17 65%
5 of 8 63%
4 of 7 57%
2 of 4 50%
Ireland
UK
Italy
France
Finland
Germany
Poland
CBI Globe
Sweden
Benelux
Estonia
Austria
Denmark

13.
The smart move in open banking™
Verified status of production by country
50%
30%
15%
Accessible APIs in production
Operational APIs in production
Banks compliant in production

14.
The smart move in open banking™
Accessibility by API Standard
NextGen PSD2
CBI - NG1.1
STET
Bespoke
UK OB
SIBS
Polish std
Redsys
2,614
1,995
280
185
65
1,995
280
185
65
38
28
16
7
76%
11%
7%
2%
1%
1%
1%
0.2%

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The smart move in open banking™
TPP Connection Process
● Signup up for developer account
● TPP application in Sandbox
● Supply of TPP Certificate
● TPP Access to and testing in Sandbox >> AIS, PIS,
4 types of payment, Support
● Migrate to production for testing
○ Supply product credentials
○ Configure application for production
○ Commence testing in production

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The smart move in open banking™
Data Use Cases
PFM / Multi-Banking Credit Assessment

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The smart move in open banking™
Payment Use Cases
Wallet Load First Payment
$

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The smart move in open banking™
Low-cost first rental payment
Eliminate high processing fees
Simplify onboarding journey and
initiating first payment

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The smart move in open banking™
Frictionless wallet load
Improve onboarding journey
Lower processing costs
Drive instant settlement

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The smart move in open banking™
Actionable PFM Application
Combine banking, payment
and receipt information
across institutions
Forecast future cash flow

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The smart move in open banking™
Barriers to mass adoption of open banking
Fragmentation of APIs
Friction in user authentication (SCA)
Restricted payment functionality
TPP frustration

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The smart move in open banking™
Problem: bespoke APIs

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The smart move in open banking™
F1 - Resulting in fragmented ecosystem
Killing the benefits

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The smart move in open banking™
Solution: API aggregation
One API
Developer Platform
Simplest Way to Access Banks

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The smart move in open banking™
F2 - Friction in Authentication
PSU
ASPSP
Solution: Federated Identity
TPP
IDENTITY

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The smart move in open banking™
F3 - Restricted payment functionality
Single immediate payments
Single transaction consent
User must be “present”
PSU
ASPSP
TPP

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The smart move in open banking™
Solution: Commercial APIs
Compliance API-based Banking

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The smart move in open banking™
What are Commercial (Premium) APIs
PSU
ASPSP
TPP
Commercial APIs
Scope
● Product types
● Richer data / identity attributes
● Derived or aggregated data
● Enhanced payment functionality
Supplied by
● Software companies
● Pay.UK
● Swift

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The smart move in open banking™
Commercial APIs enable more than compliance APIs
Request-to-Pay
Third party initiated
Programmable consent
Frictionless
authentication

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The smart move in open banking™
Subscription payments & Card on file
Variable recurring payment
“Authorisation” on file
Merchant Initiated

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The smart move in open banking™
Biller direct payments
Variable recurring payment
“Authorisation” on file
Biller Initiated

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The smart move in open banking™
Installment payments
Request to Pay capability
Variable recurring payment
“Authorisation” on file
Biller Initiated
BUY NOW
PAY
LATER

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The smart move in open banking™
Autonomous sweeps
Aggregate with data access
Analyse for “rules-based”
triggers
Initiate automated sweep
● User not present
● Long-lived consent
● Programmable authorisation

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The smart move in open banking™
POS payments
Frictionless authentication
Request to Pay
Delegated authentication

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The smart move in open banking™
The future is unlimited
The Internet
Internet banking
Mobile banking
Twitter
5 Years from now…
...Your bank will be in every app

36.
The smart move in open banking™
The future is API-based banking services
Relationship banking → ecosystem
banking
Meet consumers in their digital
experiences
Premium services, packages, capabilities

37.
The smart move in open banking™
Thank you
Todd Clyde, CEO
Token.io LTD
15 Bishopsgate
London, UK EC2N 3AR
Todd.Clyde@token.io