Danske Banks approach to Open Banking - Kasper Sylvest Head of Group Financial Market Infrastructure and sector collaboration Danske Bank - Mobey ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Danske Banks approach to Open Banking
Kasper Sylvest
Head of Group Financial Market Infrastructure and sector collaboration
Danske Bank
1
The EU’s main purpose with PSD2 which is the trigger to Open Banking
1. Pave the way for 2. At the same time 3. Foster competition & By regulating
faster payments & focus on consumer innovation access to
harmonized rules protection with a Payment
detailed set of security accounts
requirements
2
PSD2 is expected to fundamentally change the environment
RTS Final text Parliament
released by European PSD2 approved
Commission Implementation RTS text PSD2 RTS implementation
implementation deadline, incl. API’s
NO (expected)
Nov 2017 Jan 2018 May 2018 Q1 2019 Sept 2019
Services Threats and opportunities
Financial Spend Budgeting
AIS – Account Information Services
overview overview tools
Access to customer accounts • Provides account information in a consolidated
via APIs enables the provision way This will enable a more competitive market, with
new Personal Financial Management tools and
of entirely new types of
increased payment options for consumers and
service that are regulated merchants
under PSD2 PIS – Payment Initiation Services
• Initiate payments directly on the
customers account
Recurring Mobile Cross border
payments payment transfer
3
Digital aggregators have already disrupted a number of industries, ILLUSTRATIVE
PSD2 could be the accelerator for financial service disruption
Maturity
Job search Retail Travel
Financial services
Time since disruption started
Source: Expert interviews; McKinsey FinTech Panorama data base; Team analysis 4
PSD2 has kick-started Open Banking initiatives – producing API’s beyond PSD2 started but
not well defined
Closed API’s Open API’s
Private Partner Compliance Public
Open API’s that is accessible to Open API’s that is accessible to
Closed API’s that is accessible to Open API’s that is accessible to
anyone complying with a anyone: Typically involves some
DB only preferred partners
predefined set of requirements form of basic registration
5
Danske Bank are moving from traditional integrator to ecosystem provider and ecosystem
participant
Ecosystem provider Ecosystem participant
DB
developed IOT Devices
Big Tech
services (e.g., Wearables)
DB Digital Fintechs DB APIs Retailers
(e.g., Coop &
Bank 3.0 and Services S-Group)
Partner
developed
services
Banks Loyalty
schemes
(e.g., Wrapp)
6
A number of pain points should be addressed in order to fulfil Open banking ambition and
entering into partnerships
Development capacity constraints
Rigid security architecture and approval
Complex and fragmented data landscape,
Technical foundation with limited API’s and dedicated testing environment
Heavy/inefficient iteration process between business and IT
Limited experience with partner engagement and low risk appetite
7
Our partnership with Spiir gives our Nordic customers one view of all their bank accounts in
our interface
All your banks at your
fingertips
Better overview makes better
decisions. All your bank
accounts integrated into our
mobile bank
8
Our partnership with Minna technologies offer customers to save time and money by
enabling subscription management within the Mobilebank app
Benefits for customers
• Overview of all
subscriptions and
recurring payments
• Possibility to easily cancel
subscriptions
• Switch subscriptions to
save costs
• Save time and money
• Integrated in the Mobile
banking App
9
Undock – Experience day to day business banking as it should be
10District aims to provide
full financial overview
& control
• Intelligently adapts to and improves
corporate workflows
• Integrates applications from multiple
service providers to create a
financial eco-system
• Provides proactive advisory and
financial insights
11The performance of our UK Open Banking APIs are stable with most request coming from
other banks
TPP in March API Calls (AIS) API Calls (PIS)
Number of successful API calls
40 Yolt 28,818 0
Thousands
30 Ulster Bank NI Mobile Banking 6,103 0
20 Royal Bank of Scotland Mobile Banking 1,665 0
10 Tink 1,554 0
0 consents.online 521 0
Jan '19 Feb '19 Mar '19
NatWest Mobile Banking 505 0
98% 836.28 156
API avg. API avg. Number of third
availability response time parties
in milliseconds
12Key takeaways
New Partnerships are There will be no
platforms will key for future “automatic”
emerge value creation. winners
Customers don’t Open banking will
care about open accelerate the
banking – but the speed of fintech
experience. innovation.
13Thank you!
Kasper Sylvest
Head of Infrastructure and Sector Collaboration
ksy@danskebank.dk
14You can also read
