Why Banks Must Become Smart Aggregators in the Financial Services Digital Ecosystem

Why Banks Must Become
Smart Aggregators in
the Financial Services
Digital Ecosystem
Amid accelerating digital disruption wrought by fintechs and
other nonbanking rivals, financial institutions must embrace
a partnership-driven and collaborative approach to remain
relevant today, while evolving their capabilities to anticipate and
deliver against tomorrow’s market needs.
DIGITAL BUSINESS
August 2017

2 | Why Banks Must Become Smart Aggregators in the Financial Services Digital Ecosystem
Digital Business
EXECUTIVE SUMMARY
Like musicians in a finely tuned ensemble, banks can use smart aggregation to develop a stand-out
banking experience that meets and exceeds digital consumers’ expectations. Smart aggregation will
allow banks to expand their capabilities by engaging with the highest value partners and accessing the
greatest technical capabilities.
By employing a smart aggregation strategy, banks can address three pervasive digital trends that pose
an existential threat to their future ability to compete:
• An ever-shifting consumer base, particularly millennials. At an estimated population of more
than 75 million in the U.S.,
1
and two billion plus globally,
2
millennials are becoming the largest
revenue-driving demographic segment for banks over the next half century. These digital natives
favor accessibility, convenience and speed over trusted banking relationships.
• The onslaught of fintechs and nontraditional financial services providers. These organizations
are focused on addressing the shifting demands of digitally-native consumers. They are adept at
applying rapidly advancing digital technologies and benefit from a relaxed regulatory framework.
Fintechs and nonbank institutions raised $19 billion in capital between 2015 and 2016, with 90% of
the funding aimed at the highly-profitable banking segments of payments, peer-to-peer and
consumer lending and wealth management.
3
• New consumer-oriented regulations. Regulatory shifts are compelling traditional banks to digitize
quickly. Governments and regulatory bodies alike are focusing on enhanced pricing transparency
and open banking standards across the globe. For example, the European Union-led Revised
Payment Services Directive (PSD2)
4
and similar transparency-driven frameworks require banks to
reduce barriers to entry and make data accessible to third parties through secure application
programming interfaces (APIs).
Collectively, these factors threaten to strip banks of over $660 billion
5
in profits over the next half
decade. This should be reason enough for them to embrace a smart aggregation strategy in order to
accelerate the time to market for new products and services, extend their capabilities and market
reach, and simultaneously reduce costs to develop new offers and renovate existing ones.
Very few banks have fully explored the possibilities and opportunities that smart aggregation offers.
One concern is that this approach could enable competitors to encroach upon coveted customer
relationships and substantially erode margins across services. Other concerns focus on security,
privacy and uncertainty over how to monetize and derive value from externalizing data assets.
The tide is slowly changing, however, and we’re seeing a gradual mindset shift within the industry
toward smart aggregation. Slow-moving incumbents are moving to the epicenter of digitization by

3Why Banks Must Become Smart Aggregators in the Financial Services Digital Ecosystem |
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partnering with new, nonbanking entrants to leverage and provision capabilities and data, and take
their place in the rapidly expanding open banking ecosystem.
Banks should consider the following guidelines when developing their smart aggregation strategies:
• Actively pursue and foster respectful relationships with fintechs and nonbanks. Such part-
nerships should leverage both parties’ capabilities and create a mutually beneficial digital
banking ecosystem. However, banks must also be sure to carve out their own value-add to retain
control over the customer relationship.
• Provide a reliable, trustworthy, plug-and-play platform that enables partners to co-build/
innovate and deliver consumable services. The construct is akin to Android or iOS operating
systems, which are crucial to device usage but do not provide or cater to every app or service to
fulfill user needs.
• Evaluate where their true value lies and determine how to re-channel and divide their
efforts. One approach is to increase emphasis on “slow-money” functions (involving long-
horizon assets), as “fast-money” (transactional products and services) increasingly become
commoditized.
6
Doing so might entail restructuring the business to enhance the slow-money
focus on customer relationships, as well as partnering with the broader ecosystem for fast-money
offerings to meet the digital consumer’s convenience needs.
• Own the customer experience and journey by remaining at the forefront of the trust quo-
tient.Bankscandothisbycommunicatingmoreeffectivelyandconsistentlythroughtouchpoints.
They should also engage the ecosystem through their own infrastructure and/or act as a front-
end player to provide support for the aggregated capabilities in the ecosystem.
• Contend with profitability and insurgent banking challenges while charting their trajectory
toward a future state. Banks need to develop a holistic strategy (covering the customer, chan-
nel, product and operating strategies) that can help advance their partner ecosystem, determine
the means to monetize and deliver upon new millennial demands.
This white paper defines how banks can compete as smart aggregators, including our guiding prin-
ciples and collaborative framework for transforming into a bank of the future. Building on our
earlier work “How Banking as a Service Will Keep Banks Digitally Relevant and Growing,” we offer
banking leaders insights for the digital journey, using a well-defined, comprehensive product inno-
vation lifecycle, from innovation need and design/development, through building a go-to-market
digital roadmap.

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| Why Banks Must Become Smart Aggregators in the Financial Services Digital Ecosystem4
A LOOK AT THE KEY TRENDS
Coming of Age of Millennials
While the baby boomer generation values a relationship-centric experience that hinges on trust and
personalization, younger generations are more interested in unlimited accessibility, convenience and
speed. This shift in consumer expectations is challenging banks to provision services similarly to how
digitally native businesses do, such as the FANG companies (Facebook, Amazon, Netflix and Google).
In a three-year study of over 10,000 millennials, 73% of respondents said they were more excited
about new financial service offerings from nonbank entrants such as Google, Apple, Facebook or
Amazon than from their own nationwide banks. Meanwhile, nearly half are counting on fintechs to
overhaul the way banks work.7
These findings reveal millennials’ predilection for the latest digital tools
and techniques to deliver the experience they expect.
The question for banks is not whether they should aggregate services but which services they should
intelligently aggregate.
Rise of Fintechs
Digital technologies are leveling the playing field and considerably reducing the traditionally high
barriers to entry into the banking industry. From rampant growth in smartphone ownership, to a tri-
pled investment in AI and machine learning to interpret behavioral data, the banking industry is being
transformed by technology.8
The continuous uptick in tech consumerization and consumption, cou-
pled with incumbent banks’ slow-moving adoption/innovation disposition, has opened the door for
insurgent fintechs and nonbanks to make forays into the banking value chain.
Approximately $78 billion has been invested in the fintech market since 2000, empowering these
companies to grab a significant share of the total banking pie ($660 billion is at risk, according to
Goldman Sachs).
9
In particular, the majority of fintech attention has been laser-focused on the pay-
The Fintech Factor
LEVELOFDISRUPTION
IMPACT ON BANK
Trivial Extreme Risk
Problematic Alarm Bells
Group/back office
Business
services & tools
Wealth and asset management
Consumer lending
Current account’s savings &
personal financial management
Business lending
Payments &
remittances
Figure 1

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ments and lending segments of the value chain. Lending is of particular concern, as it accounts for
46% of global banking profit. Broader industry estimates show banks could lose 50% to 60% of their
profits in this segment over the next decade.
10
A good starting point for banks approaching smart aggregation is to understand how investment/
capital allocation by fintechs threatens them across their traditional value chain (see Figure 1, previ-
ous page). As illustrated, business and consumer lending should be the banks’ biggest concern and a
major consideration as they move toward the development of a digital banking ecosystem.
QUICK TAKE
Future of Banking through an
E-Tailing Lens
Look no further than the retail space to understand the potential impact of nonbanks entering traditional
banking. North American e-commerce sales reached $423 billion in 2016, led by three Internet technology
players: Amazon, Apple and Google.
11
Both Apple and Google have launched digital payment services – Apple Pay and Google Wallet – to spear-
head their entry into e-commerce, which is not dissimilar to how many fintechs are approaching banking.
Amazon, on the other hand, has leapfrogged the payments value proposition. Since 2012, the online retail
giant has provided short-term loans to Amazon resellers through Amazon Capital Services. These loans are
offered at around 14% interest and range from $1,000 to $800,000. Approvals can be conducted in as little
as 24 hours, using the Amazon sales history of the loan requestor and a customized algorithm.
12
A good starting point for banks
approaching smart aggregation is to
understand how investment/capital
allocation by fintechs threatens them
across their traditional value chain.

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Consumer-Oriented Regulations
New regulations are forcing banks to increase the transparency of customer information, improve
security and comply with changes in liquidity and capital requirements. The European Union’s open
banking initiative is causing banks to rethink their business model in order to capture new revenue
streams and fend off fintechs. At the highest level, the Revised Payment Service Directive (PSD2) is
meant to increase competition in the banking sector via the XS2A (Access to Accounts) and PISP
(Payment Initiation Services Provider) rules, which will require banks to share their clients’ account
data with third parties, starting in 2018.13
The banking industry coexists within a very strict regulatory framework, unlike insurgent players that
work under minimal constraints. Regulators globally are trying to balance the need to protect con-
sumer interests and unlock the banking capabilities that lay at the heart of competition in the data
economy. The XS2A secure API account access services are forcing banks to invest in digital security
to ensure that third parties confirm that customers have granted permission to access their data.14
Such regulations, in conjunction with an increased focus on pricing transparency and liquidity, are
pushing banks to automate key back-office and middle-office functions to reduce risk and improve
efficiency.
FIVE GUIDING PRINCIPLES FOR SMART AGGREGATION
Take a ‘Frenemies’ Approach
When considering smart aggregation partnerships with fintechs and nonbank rivals, banks should
follow the adage “keep your friends close and your enemies closer.” While new entrants pose a com-
petitive threat, partnerships between fintechs and banking incumbents still offer formidable
advantages (see Figure 2).
The Simmering Banking Aggregation Symbiosis
Paypal
MasterCard
Visa
Intuit
Oanda
Yodlee
Lending Club
** Traditional bank strength that is of interest to fintechs and new entrants
Traditional
Bank Strength
Evenly
Matched
Potential Areas of
Collaboration/Convergence
Capital to scale
Marketing power
Personal consumer data
Loyal customer base
Large geographic footprint
New-age distribution network
Brand
NONBANKS TRADITIONAL BANKS FINTECHS
Google
Amazon
Facebook
Apple
Alibaba
Scale
Marketing power
Access to capital & liquidity
Bank branch network
Trust advantage**
Large customer base**
Historic data assets**
Banking license
Sophisticated infrastructure
Risk, security & fraud protection**
Cutting-edge technology
Convenience
Consumer journey innovation
Lean IT
Value for money
Timely & efficient service
Personal data integration
Positive consumer experience
Figure 2

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With their large customer bases, reams of historical data, reliable infrastructure and decades spent
establishing consumer trust, banks have many competitive strengths. Banks are also experienced at
navigating a complex regulatory environment and are officially chartered to operate a financial busi-
ness. All of these capabilities make them relevant and attractive to fintechs and nonbanks seeking
partnerships.
For their part, well-funded newcomers, backed by renowned brands, offer innovation capabilities and
operate with a lean, agile IT infrastructure. Unburdened by legacy systems, this technology architec-
ture significantly enhances their time to market and ability to deliver personalized, engaging digital
consumer experiences.
A win-win for incumbents and new entrants alike is to keep pace with the demands of born-digital
consumers at a reasonable cost, which they can do by forging symbiotic partnerships through smart
aggregation. To do this, banks must first define which aggregation points/capabilities should be exter-
nalized, understand the potential value of externalization and identify the right partners to advance
this new value stream.
Agreeable aggregation points include the digital distribution networks offered by new entrants, in
return for access to the traditional banks’ large consumer base and data assets. Along the way, banks
must avoid becoming overly reliant on outsourcing innovation to their fintech partners. These organi-
zations need to strengthen their strategic alignment by prioritizing innovations that advance their
business objectives and help them retain control of customer relationships.
Banks must first define which
aggregation points/capabilities
should be externalized, understand
the potential value of externalization
and identify the right partners to
advance this new value stream.
An example is JPMorgan Chase, which earlier this year established a partnership with online lender
OnDeck to launch an online small-business loan platform. The partnership is expected to reduce the
loan cycle for JPMorgan Chase’s four million small business customers from weeks to a few hours or
days.15
JPMorgan Chase will retain control over the customer relationship, as these loans will be
branded by the bank, while significantly improving the product innovation lifecycle.
The same can be done by smaller community banks in the consumer lending space. Co-branded part-
nerships with fintech lenders is the optimal path to scaling new consumer loan volume and fully
supporting service delivery. For example, Titan Bank offers personal loans directly to customers
through the Lending Club platform; such co-branded consumer loan services have helped such banks
grow their loan portfolio and generate returns of 6% to 10% on P2P loan portfolios.16

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Become the ‘OS’ for Future Banking
The ultimate goal for banks is to retain their position as the trusted partner for all consumer banking
activities, even as digitization delivers holistic simplicity across the customer journey. API-led smart
aggregation can help banks achieve this goal, by establishing them as the de facto ”operating system.”
By leveraging a layer of universal APIs to collaborate with fintech and nonbank ecosystems, banks
can become a vital player by making available a licensed, regulated platform that services can be
plugged into. This will generate new revenue streams and fulfill the consumer experience, while
making new entrants reliant on banks for crucial data, processes, services and infrastructure (see
Figure 3).
Fidor Bank,17
for example, has leapfrogged its peers by putting digital technologies at the core of its
banking ecosystem. Fidor has developed its own operating system (FidorOS), which is the lifeblood
and central nervous system of the bank. Its modular banking platform enables social and real-time
functionality through open API services that enable third-party financial services providers to plug
and play (see Figure 4, next page). The platform has allowed Fidor to spawn a rich ecosystem of part-
ners, developers and white-label customers, thereby enabling the bank to anticipate customer needs
with a continuous stream of innovative products and services.
Banks’ Foundational Role in Emerging Ecosystems
Data Process Infrastructure Services
P2P Lending E-Wallets mPOS Social Trading
Operating System
Licensed & Regulated Back-end
Middleware Universal APIs as Connector
Open APIs
Banks
Aggregated Digital EcosystemFintech & Nonbank Providers
Figure 3

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Telefonica Germany, a provider of broadband, landline and mobile telecommunications, has partnered
with Fidor to introduce the first mobile banking app with full banking services.18
Mobile functions
include a MasterCard with a contactless function, customer identification and enrollment via video
identification, and an intuitive interface that provides a detailed overview of transactions, as well as
small instant loans and push notifications.
Re-emphasize Slow Money as Fast Money Is Commoditized
To succeed in the digital world, banks must radically reshape their business model. Historically, banks
have sought revenue growth by cross-selling services/products with the same set of customers or by
collecting interest and fees from customers. However, consumers are challenging this status quo as
they increasingly demand the same services at reduced or no fees.
By responding to these preferences, fintechs are undermining the historical banking value chain.
The resulting disintermediation is impacting fee-based revenue and causing margin erosion. Exam-
ples of such disintermediation are plentiful:
• TransferGo offers consumers cross-border payments that are 10 times less expensive
19
and deliv-
ered in seconds rather than days.
• Betterment and SigFig employ robo-advisory services and other tools to dramatically reduce fee
costs to the average investor while intelligently developing a personalized investment portfolio
of funds.
How White Labeling Advances Fidor’s Customer Centricity
Banking Made Possible via Fidor White Labeling
Core Core Banking System Core Banking System
Operating System Operating System
(e.g., MQSeries)
Community Payments Banking
FidorOS
Optional
Core Modules
Payments Banking
Product Features
Blog P2P A2A P2P A2A
Web Front End Web Front EndWeb Interface
Mobile Apps
Interface to the Core
Bank 1 Bank 2
(e.g., MQSeries)
A2A(Account to Account) P2P (Peer to Peer)
Figure 4

• Instant service segments, such as payments, remittance transactions and other transaction-based
products and services,20
are under threat of commoditization from new entrants offering innova-
tive, convenience-driven products. Some experts estimate this will result in a double-digit decrease
in U.S. banks’ fee margins for consumer finance, payments and asset/wealth management.21
To thwart disintermediation in these fast-money segments, banks should identify smart aggregation
capabilities that can be externalized through partnerships with fintechs and nonbanks. Doing so would
help banks remain relevant by delivering a complete digital experience and meeting consumer demand
at reduced costs while still retaining a share of the revenue from such services.
Banks should focus their move-forward strategies on maximizing slow-money segments, such as cap-
ital/asset management, investor portfolio management, etc., where they already have an historical
advantage. Incumbent banks with these competencies should reaffirm their core capabilities and ser-
vices in these areas by injecting robotics and/or platform-powered automation into core banking
processes and readjusting their strategic advantage as market conditions dictate.
By taking this two-pronged approach, banks can re-center their operating model and serve as a forcing
function to reconfigure core in-house services. It will also allow them to maintain control of end-to-end
customer lifecycle management for their most valuable segment, and provide them with a golden
opportunity to get ahead of the digital competition, further their customer reach and address demand.
Own the Customer Experience and Journey
To maintain a central role in the banking ecosystem, incumbents must truly prioritize the digital con-
sumer and preserve ownership of the customer journey. Recent research reveals that for businesses
across industries, just a 10 point increase in customer satisfaction can increase revenues by 2% to 3%.22
To accomplish this, banks must shift from product to customer centricity. This can be done by taking
three actions:
• Establish a model of consumer engagement throughout the discovery and awareness segments
of the customer journey. This will require banks to break down internal barriers between business
functions and drive partnerships with fintechs and others with which they could share information
and analytical insights, as well as promote new value streams.
• Develop an externalized API layer, wrapped around the banks’ core assets to allow for the inte-
gration of smart data-driven capabilities with outside providers. By doing so, banks can deliver a
Banks should focus their move-forward
strategies on maximizing slow-money
segments, such as capital/asset management
and investor portfolio management, where
they already have an historical advantage.

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personalized consumer journey outside their own core banking systems and provide the much
desired added value to today’s digital customer.
• Enable delivery of unparalleled customer service support across the entire customer journey.
According to one study, for example, 78% of millennial consumers expect a customer service
agent to know their contact, product information and service history when they contact a brand
for assisted service.23
With their massive datasets and analytics-driven customer service, banks
must play to their strengths by provisioning this service across multiple touchpoints.
Case in point, we enabled an omnichannel account opening service for a large UK bank via the devel-
opment of a mobile iOS interface with a customer support service model that provides retail banking
functionality on digital devices (iPad and iPhone). This allowed the bank’s staff to assist with the open-
ing of accounts, both online and offline, by asking customers to validate data via a digital signature.
This capability delivered the convenience sought by millennial customers, as it effectively reduced the
average time taken to open an account by 75%, from four days to one day, and resulted in a net
increase of 50-plus account openings per week.
Figure 5 illustrates how banks can leverage their vast data assets, smart integration competencies
and superior customer support to remain relevant in the consumer journey in a connected, digital
ecosystem.
Digital Consistency Across Channels
Bank services provided on digital channels Servicing multiple customer journey touchpoints
leveraging the partner ecosystem
Mobile
Apps
Products &
Services
IoT
Wearables
Customer
Database/CRM
Compliance
KYC Data
BI &
Analytics Data
Process
(e.g., e-wallet)
Fintech Partners
Omnichannel
Awareness
Convenience at
Point of Purchase
Cross-Sell/
Upsell
Customer Loyalty &
Retention
Personalized
Experience & Discovery
Bank
Accounts
Customer Support Service
Customer
Touchpoints
Social Network
Partners
Figure 5

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Become the Bank of the Future
To become a bank of the future, incumbent banks need to evolve through an API-led open banking
program and regain a central role in the democratized digital ecosystem. Banks must function as plug-
and-play aggregators addressing a plethora of strategic collaborative functions, effectively becoming
a distributor of services by enabling the consumer base to access products from fintech partners, or
acting as an orchestrator that offers banking-as-a-platform services to a variety of players in the eco-
system.
Figure 6 illustrates the collaborative framework that we believe will underlie the bank of the future.
This democratized ecosystem will provide the platform with open APIs, through which fintechs and
nonbanks will plug into the banking infrastructure and capabilities as part of a new operating model.
Major banks worldwide have pursued a transformation strategy by doing the following:
• Engineering personalized customer journeys as digitization leads to truly personalized,
enriched, holistic end-to end-services. Wells Fargo has moved forward with secure API external-
ization to transfer customer data into Intuit programs, including QuickBooks, Mint and TurboTax,
to improve convenience for its account holders.24
• Facilitating instant services and reducing time to market. Canada’s Scotiabank has partnered
with Chase on payment technology APIs in merchant services to reduce the time it takes for funds
settlement. This is a must for banks as fee erosion continues.
The Open Banking Ecosystem: The Future State
APPLIED BANKING PLATFORM
Products
& Assets
DIGITAL PLATFORM – OMNICHANNEL DISTRIBUTION
Customer interface &
delivery
Co-branding &
marketing
Omnichannel Infrastructure
(marketplace, apps, etc.)
Accounts
Loan
Mortgage
Leasing
Factoring
Loyalty
Cards
RegulatoryCompliance
SYSTEM OF RECORD & LICENSE (CORE BANKING)
Process
Platforms
DIGITAL PLATFORM (DATA & ANALYTICS)
Fraud
monitoring
Predictive
analytics
Business intelligence
& data insights
Performance
management
Transactions
& payments
Servicing
(loan,
underwriting,
credit
qualification &
trading)
AML/ KYC
Document
management
Hosting & networkingCore IT management
services
Security
services
Innovation
management
NONBANK
ENTRANTS FINTECHS
WEALTH MANAGEMENT
INVESTMENT & TRADING
PAYMENTS
REMITTANCE & FOREIGN EXCHANGE
LOANS & MORTGAGES
Alibaba
Amazon
Apple
Facebook
Google
Samsung
Kabbage
Kreditech
Lending Club
LendingTree
OnDeck Capital
Quicken Loans
SoFi
eToro
Motif
Oanda
Stockspot
Tradier
Dwolla
PayPal
Square
Venmo
Kantox
TransferWise
WorldRemit
Betterment
Intuit
Nutmeg
WealthFront
Mobile Apps
Social
Networks
IoT
Wearables Internet
Figure 6

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Banks must function as plug-and-play
aggregators addressing a plethora
of strategic collaborative functions,
effectively acting as a distributor of
services or as an orchestrator that offers
banking-as-a-platform services to a variety
of players in the ecosystem.

Digital Business
• Evolving into a lean operator of digital services. To cost-effectively improve their outreach in
highly competitive digital segments such as consumer lending, banks are seeking strategic alli-
ances with new entrants. For example, Santander partners with Kabbage in the EU and UK to use
its platform for SME lending; conversely, Lending Club is using Citibank NA’s credit facility to
finance loans that qualify under the Community Reinvestment Act.
• Creating platform-based marketplace for products and services to advance collaboration and
revenue generation. This will force banks to open their data assets and customer-related informa-
tion to third parties. As digital API offerings mature, banks such as BBVA, N26 and Fidor in
particular will offer a complete set of white-labeled software-as-a-service solutions for digital
banking.
The evolution into a bank of the future will not be quick or easy; it will require banks to externalize
services and aggregate capabilities with new entrants. It will also necessitate vast cultural change.
(For more on the changes required, please read our white paper “How Digital 2.0 Is Driving Banking’s
Next Wave of Change.”)
LOOKING FORWARD
The digital disruption caused by new entrants will not disappear. And the low interest rates that have
persisted over the last few years are likely to remain for the foreseeable future. These external macro
forces, along with new regulations that strive for new levels of transparency, will continue to drive
banks toward the digital frontier and partake in an enriched democratized ecosystem built around
collaboration and smart aggregation.
The task at hand calls for major transformation for incumbent banks if they truly want to become the
digital OS of the banking ecosystem. Banks must begin now to identify capabilities that are ripe for
open banking, identify business-driven use cases that justify externalization, develop the technology
and operating model for implementation, and most importantly, select partners to collaboratively
enrich the digital banking ecosystem.
We firmly believe that traditional banks are well positioned to succeed in the digital banking future if
they take the right actions now – and establish themselves once again as the most important piece of
the financial services puzzle.

Digital Business
FOOTNOTES
1 Richard Fry, “Millennials Overtake Baby Boomers as America’s Largest Generation,” Pew Research Center, April 25, 2016,
http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/.
2 Ari Sillman, Courtney Rickert McCaffery and Erik R. Petersen, “Where Are the Global Millennials?” ATKearney, http://www.
atkearney.co.uk/paper/-/asset_publisher/dVxv4Hz2h8bS/content/id/8693136.
3 Elena Mesropyan, “Global Fintech Funding Reached $36 Billion in 2016 with Payments Companies Securing 40% of Total
Funds,” LTP, Jan. 2, 2017, https://letstalkpayments.com/global-fintech-funding-36-bn-2016/.
4 Peter-Jan Van De Venn, “The Impact of PSD2 on API Banking,” BBA, Nov. 30, 2016, https://www.bba.org.uk/news/insight/the-
impact-of-psd2-on-api-banking/#.WQkImM_yvDc.
5 “2016 Top Market Report: Financial Technology,” International Trade Administration, 2016, http://trade.gov/topmarkets/pdf/
Financial_Technology_Executive_Summary.pdf.
6 “The Future of Money,” Cognizant Technology Solutions, 2017, https://www.cognizant.com/whitepapers/the-future-of-money-
codex2547.pdf.
7 “The Millennial Disruption Index,” Viacom Media Networks, 2013, http://www.millennialdisruptionindex.com/wp-content/
uploads/2014/02/MDI_Final.pdf.
8 Andrew Burger, “Pew: U.S. Smartphone Ownership, Broadband Penetration Reached Record Levels in 2016,” Telecompetitor,
Jan. 13, 2017, http://www.telecompetitor.com/pew-u-s-smartphone-ownership-broadband-penetration-reached-record-lev-
els-in-2016/, and James McCormick, “Predictions 2017: AI Will Drive the Insights Revolution,” Forrester Research, Nov. 2, 2016,
https://go.forrester.com/wp-content/uploads/Forrester_Predictions_2017_-Artificial_Intelligence_Will_Drive_The_Insights_
Revolution.pdf.
9 “2016 Top Markets Report: Financial Technology,” International Trade Administration, http://www.trade.gov/topmarkets/pdf/
Financial_Technology_Executive_Summary.pdf.
10 “Fintechs Might Be Corporate Banks’ Best ‘Frenemies,’” BCG Perspectives, July 5, 2016, https://www.bcgperspectives.com/
content/articles/financial-institutions-technology-digital-fintechs-may-be-corporate-banks-best-frenemies/.
11 “Worldwide Retail Ecommerce Sales Will Reach $1.915 Trillion this Year,” eMarketer, Aug. 22, 2016, https://www.emarketer.
com/Article/Worldwide-Retail-Ecommerce-Sales-Will-Reach-1915-trillion-This-Year/1014369.
12 Alistair Barr, “Amazon Lending: Company Offering Loans to Its Online Sellers,” Huffington Post, Sept. 29, 2012, http://www.
huffingtonpost.com/2012/09/28/amazon-lending-company-no_n_1923148.html%20-%20September%202012.
13 Peter-Jan Van De Venn, “The Impact of PSD2 of API Banking,” BBA, https://www.bba.org.uk/news/insight/the-impact-of-psd2-
on-api-banking/#.WQkImM_yvDc.
14 “PSD2 and XS2A: Regulation or Opportunity?” FIS and Finextra, May 2015, https://www.fisglobal.com/-/media/FISGlobal/
Files/Report/PSD2-and-XS2A-Survey.pdf.
15 Kevin Wack, “Chase Quietly Launches Its Online Small-Business Loan Platform,” American Banker, April 12, 2016,
https://www.americanbanker.com/news/chase-quietly-launches-its-online-small-business-loan-platform.
16 “The Latest on Banking and Peer-to-Peer Lending,” Synergy Partners, 2013, http://www.synergypartners.com/news/latest-
banking-peer-peer-lending.
17 Fidor website: https://www.fidor.com/.
18 “Telefonica Germany Launches Fidor-Backed Mobile Banking Service,” Finextra, July 25, 2016, https://www.finextra.com/
newsarticle/29221/telefonica-germany-launches-fidor-backed-mobile-banking-service.

Digital Business
19 Vaida Saltenyte, “TransferGo Allows Migrants to Send Money Home 10X Cheaper and Faster,” 150sec.com, Jan. 20, 2016,
http://150sec.com/transfergo-allows-migrants-to-send-money-home-10x-cheaper-and-faster/.
20 “The Future of Money,” Cognizant Technology Solutions, 2017, https://www.cognizant.com/whitepapers/the-future-of-money-
codex2547.pdf.
21 Denis Bugrov, Miklos Dietz and Thomas Poppensieker, “A Brave New World for Global Banking,” McKinsey & Co., January 2017,
http://www.mckinsey.com/industries/financial-services/our-insights/a-brave-new-world-for-global-banking.
22 Alex Rawson, Ewan Duncan and Conor Jones, “The Truth about Customer Experience,” Harvard Business Review, September
2013, https://hbr.org/2013/09/the-truth-about-customer-experience.
23 “2016 State of Global Customer Service Report,” Microsoft Corp., 2016, http://info.microsoft.com/rs/157-GQE-382/images/
dynamics365-en-global-state-customer-service.pdf.
24 Penny Crosman, “Wells-Finicity Deal Furthers Data Détente,” American Banker, April 4, 2017, https://www.americanbanker.
com/news/wells-finicity-deal-furthers-data-detente.

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Digital Business
ABOUT THE AUTHORS
Philippe Dintrans is a Senior Vice-President and Global Leader
of Cognizant Business Consulting’s Banking and Financial
Services Practice, where he is Chief Digital Officer. Philippe
has led numerous consulting engagements covering business
transformation, IT transformation and change management for
marquee Cognizant clients. He holds a master’s of science degree
in engineering from the Massachusetts Institute of Technology
(MIT) and an MBA from INSEAD. Philippe can be reached at
Philippe.Dintrans@cognizant.com.
Philippe Dintrans
SVP and Global Consulting
Leader of Cognizant Business
Consulting’s Banking and
Financial Services Practice
Madhusudan Ponnuveetil is a Director and Principal with Cognizant
Business Consulting’s Banking and Financial Services Practice.
He has more than 12 years of experience leading large operating
model innovations, performance improvement and change man-
agement initiatives. Madhu holds an MBA from Asian Institute of
Management, Philippines, and a bachelor’s degree in engineering
from MSRIT, India. He can be reached at Madhusudan.Ponnu-
veetil@cognizant.com.
Madhusudan
Ponnuveetil
Director and Principal,
Cognizant Business
Amit Anand is an Assistant Vice-President within Cognizant Busi-
ness Consulting’s Banking and Financial Services Practice. He has
15 years of experience successfully leading and managing large
business/IT transformation, operating model and digital initiatives
for various clients. Amit holds a bachelor’s degree from the IIT
Delhi and an MBA from the Indian School of Business, Hyderabad.
Amit can be reached at Amit.Anand@cognizant.com.
Amit Anand
AVP with Cognizant Business

Digital Business
Ardhendu Acharya is a Consulting Manager with Cognizant
Business Consulting’s Banking and Financial Services Practice.
He has more than 10 years of experience managing consulting
engagements across key digital initiatives such as open APIs,
focusing on externalization and monetization strategy, design
and implementation of an API factory model blueprint, business-
driven IT strategy and cost optimization initiatives. Ardhendu
holds an MBA in advanced strategy from the Rotterdam School
of Management, Erasmus University, the Netherlands, and a
bachelor’s degree from Anna University, India. He can be reached
at Ardhendu.Acharya@cognizant.com.
Ardhendu Acharya
Consulting Manager
with Cognizant Business
Adam Chardukian is a Senior Consultant with Cognizant Business
Consulting’s Banking and Financial Services Practice. He has more
than seven years of experience executing consulting engagements
around target operating model design, financial analysis, Lean/
Six Sigma implementation and business development/product
management. Adam holds an international MBA and a bachelor’s
degree in corporate finance and global supply chain and opera-
tions management from the University of South Carolina. He can
be reached at Adam.Chardukian@cognizant.com.
Adam Chardukian
Senior Consultant with
Cognizant Business

© Copyright 2017, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic,
mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice.
All other trademarks mentioned herein are the property of their respective owners.
TL Codex 2866
ABOUT COGNIZANT BUSINESS CONSULTING
With over 5,500 consultants worldwide, Cognizant Business Consulting offers high-value digital business and IT consulting services that
improve business performance and operational productivity while lowering operational costs. Clients leverage our deep industry experience,
strategy and transformation capabilities, and analytical insights to help improve productivity, drive business transformation and increase
shareholder value across the enterprise. To learn more, please visit www.cognizant.com/consulting or e-mail us at inquiry@cognizant .com.
ABOUT COGNIZANT BANKING AND FINANCIAL SERVICES
Cognizant’s Banking and Financial Services Practice, which includes consumer lending, commercial finance, leasing insurance, cards, pay-
ments, banking, investment banking, wealth management and transaction processing, is the company’s largest industry segment, serving
leading financial institutions in North America, Europe, and Asia-Pacific. These include six out of the top 10 North American financial insti-
tutions and nine out of the top 10 European banks. The practice leverages its deep domain and consulting expertise to provide solutions
across the entire financial services spectrum, and enables our clients to manage business transformation challenges, drive revenue and cost
optimization, create new capabilities, mitigate risks, comply with regulations, capitalize on new business opportunities, and drive efficiency,
effectiveness, innovation and virtualization. For more, please visit www.cognizant.com/banking-financial-services.
ABOUT COGNIZANT
Cognizant (NASDAQ-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and
technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innova-
tive and efficient businesses. Headquartered in the U.S., Cognizant is ranked 205 on the Fortune 500 and is consistently listed among the
most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.
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