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The future of banking

Lars Markull & Joachim PenkSocial Media Week, Hamburg, 23. Februar 2015

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FinTech disruption

Change in banking 1

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Future of Banking: API Banking

API in practice

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4What’s next 4

Twitter: #SMWFinTech

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“The Only Thing That Is Constant Is Change”

Heraclitus

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Traditional banking

“Banks face more change in next 10 years than in the last 200” - Chris Skinner

Traditional banking competition

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Customers

Products

Bank A Bank B

Competition

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Mobiles and software changed the world

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“PayPal Germany has more users than

Sparkassen online banking customers”

Everything is online, but banks…

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Cultural change

Source: http://www.millennialdisruptionindex.com/

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Consequences

Source: http://www.millennialdisruptionindex.com/

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Biggest threats to banking

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“Death by a thousands cuts”

“There is an app for that”

Points of attack

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7.9b €

10.7b €

19.7b €

Other fees

20.5b €

Bank revenue in 2012 Substitute product from FinTech startups

Exchange and mobile transactions, personal finance

tools

Securities Wealth management

Deposits Private bank accounts, wealth management

Loans Peer to peer, crowdfunding, SME loans, factoring

Source: Horvath & Partners Research, 2014

The new banking competition

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Bank A Bank B

(Near Banks)Like Banks

New Banks

Why is banking interesting?‣ Google, Apple, Facebook, Amazon etc. ‣ More users & relevance ‣ New areas ‣ Data

‣ Startups ‣ “Easy” to win ‣ Good at technology ‣ Fast and innovative ‣ Try, error and adjust mentality

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Investment in FinTech soars

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FinTech disruptor examples

Change in banking 1

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API in practice 4

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What’s next 4

Twitter: #SMWFinTech

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An easy start with payment

SumUp (mobile POS)

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P2P disrupts payment

Lendstar + many others (mobile peer to peer payments)

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P2P disrupts lending & investing

Auxmoney (peer to peer loans)

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Fair and transparent investing

Moneymeets (easy and social investing)

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Mobile banking only

Number26 (bank account 100% mobile)

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Full range of services

“Your fat margin is my opportunity” Every entrepreneur

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FinTech disruption

Change in banking 1

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Future of Banking: API Banking

API in practice

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4What’s next 4

Twitter: #SMWFinTech

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Consequences‣ Banks fade more into the background

‣ Banks will offer “backend-services”

‣ FinTech startups and similar players will offer “fronted-services”

‣ In the future financial services can be connected to every bank account

=> How to create financial services that are independent from a certain bank account?

Banking in silos

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Apps ToolsServices

Financial DataBanken Kreditkarten Wallets Kryptowährungen Broker

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Multiple bank connections

How (could) it work(s)

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User accesses data through a central

financial ID User- & Access Management

Metadata Enrichment Realtime sync & Notifications

Sync across devices & services Smart Data

Partner connectsfinancial IDvia REST-API

Hosted in a German Bank Data Center

Financial Data

‣ Apps ‣ Tools‣ Services

‣ Banks‣ Creditcards‣ Wallets‣ Cryptocurrencies‣ Broker

Financial data brings context and speedPossible use cases

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Dev-Platforms Payment Wealth Management / Investing

Productivity Banking API Banking

Insurance companies Risk management / Identification Accounting

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Use case: Scan and Pay

Organize.me helps you to pay your bill - with one single app

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Use case: Smart Banking

Kontoalarm helps you to identify not-required subscriptions

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Use case: Real time scoring

Auxmoney uses the API in customer identification and risk management

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And many more…

What about you?

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FinTech disruption

Change in banking 1

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Future of Banking: API Banking 3

4What’s next 4

Twitter: #SMWFinTech

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Banking API will be normal

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Future of banking‣ Pick a bank account and select third party add-

on services

‣ Security and data protection is “backend”

‣ The ones from before plus many more to come…

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Banking app stores

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Want to get in touch?Lars Markull E-Mail: lm@figo.me Twitter: @larsmarkull

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Anschrift: figo GmbH, Burchardstr. 21, 20095 Hamburg Postanschrift: figo GmbH, Eifflerstr. 43 (Betahaus), 22769 Hamburg

Joachim Penk E-Mail: jp@figo.me Twitter: @achimsen