Wall Street Mobile Technologies Conference, Bank's "Uber Moment" and Open Banking

HOW OPEN BANKING IS LEADING TO AN “UBER MOMENT” FOR THE BANKING INDUSTRY

John MarxFSI Regional DirectorMarch 16, 2017

INSERT DESIGNATOR, IF NEEDED2

UBER MOMENT

Antony Jenkins, former head of Barclay’s, coined the term “Uber moment” in a speech reported by Reuters in November of 2015.

The concept described a digital disruption that would lead to banks halving the number of employees and traditional branches by 2025.


DRIVING DIGITAL TRANSFORMATION

2010-13CONSUMERIZATION

2013-16MOBILE-FIRST

2016 +DIGITAL ENTERPRISE

● iOS SUPPORT● EXPERIMENT APPS● POINT SOLUTION● RISK MANAGEMENT

● MULTI-DEVICE● TARGETED APPS● DEV PLATFORM● BUSINESS

ENABLEMENT

● WEARABLES● INTERNET OF THINGS● MOBILE ARCHITECTURE● BUSINESS

TRANSFORMATION

DEVICE-CENTRIC APP-CENTRIC INFORMATION-CENTRIC


DIRECTIVE ON PAYMENT SERVICES (PSD2)

● Enhance consumer protection and promote development of online and mobile payments

● First step toward Banking-as-a-Platform

● Enable access to APIs by third parties

● Accelerate digital transformation


OPEN BANKING

The use of open source technology to achieve the

move to open banking

The use of Open APIs that enable third-party developers to build applications and services around the financial institution

Greater financial transparency options for account holders, ranging from open data to

private data


OPEN API STANDARD

Source: Accenture / Red Hat research

BETTER CUSTOMER OUTCOMES • New value-added

apps• Improved customer

propositions

EXPANDED DISTRIBUTION• Banking app store• Third-party apps,

portals on public app stores

RAPID INNOVATION • In-house innovation• Third-party innovation

WINDOW TO NEW ECOSYSTEMS • Trusted partners• Account information service providers

(AISPs) and payment initiation service providers (PISPs) third-party payment providers (TPPs)

• Fintechs

Benefits and opportunities

MONETIZATION • Third party pays per

use• Indirect monetization

• Risk of displacement by third-party payment providers

• Online debit card transactions and credit card transaction at risk of displacement by third-party payment providers

Revenue impact

Customer impact

• Lower brand affinity• Reduction in cross-sell opportunities• Reduction in available customer insights• Un-bundling of banking services, as customers

exercise their ability to use multiple digital banking products provided by different financial and non-financial institutions

Threat

Revenue impactLikelihood of revenue loss Revenue could be gained

API-ENABLED OPEN BUSINESS DRIVES INNOVATION


MOBILE OR MOBILITY?

The onset of “ubiquitous computing” will create a tipping point for enterprise application infrastructures, as well as application development platforms.


“38 percent of total IT spending is outside of the formal IT

organization already, with a disproportionate amount in

digital. By 2017, this number will grow to more than 50%.”

Gartner, Drive Digital Business with Insights from Symposium, Nov 2014

“By 2017, 75% of mobile security breaches will be the result

of mobile application misconfiguration.”

Gartner Predictions, 2014

“85% of companies surveyed noted that they have a mobile backlog of between 1 and 20

apps, with half of those having a backlog of between

10 and 20 apps.”

Opinion Matters survey on behalf of Outsystems – Sept 2014

SECURITY INCIDENTS AND REGULATIONS WILL DRIVE GROWTH IN BUDGETS


FINANCIAL TECHNOLOGY

Financial technology, also known as FinTech, is an industry comprised of companies that use new technology and innovation with available resources in order to compete in the marketplace of

traditional financial institutions and intermediaries to deliver financial services.


PSD2


APP DEVELOPMENT● Templates● Codeless apps● Online/offline workflow● Software development kits (SDKs) and templates● Credentials management

CORE MOBILE APPLICATION PLATFORM

CLOUD DEPLOYMENT

MOBILE BACKEND-AS-A-SERVICE (MBaaS)

● Data sync● Storage● Security

● Authentication● API management● Microservices

● Life-cycle management● Analytics & alerts● Build farm● Private app store

● Git repositories● Node.js modules● User management

PUBLIC, PRIVATE, HYBRID, PaaS

ENTERPRISESYSTEMS CO

LLABO

RATIO

N A

ND LIFE-CYCLE M

AN

AGEM

ENT

FRONT-ENDDEVELOPER

BACK-ENDDEVELOPER

DEVOPS


RED HAT ENTERPRISE LINUXWindows, UNIX, and other Linux®

Development and tooling

JBoss Developer Studio

Develop, test, debug, refine, deploy

Management and monitoring

JBoss Operations Network + hawtio

Systems and web services metrics, automated discovery,

container status, automatic updates

(Fuse Management Console)

Web services framework

Apache CXF Apache Camel

Integration frameworkWeb services standards, SOAP,

XML/HTTP, RESTful HTTPTransformation, mediation, enterprise

integration patterns

Reliable messaging

Apache ActiveMQ

Container

Apache Karaf + Fabric8 / JBoss EAP / Red Hat OpenShift (Paas)

JMS/STOMP/NMS/MQTT, publishing-subscribe/point-2-point, store and forward

Life-cycle management, resource management, dynamic deployment, security and provisioning

RED HAT JBOSS FUSE


AGILE AND DEVOPSMODE 2Agility

Agile, kanbanbusiness-centric

Release in days/weeks

MODE 1Reliability

Waterfall, V-modelIT-centric

Release in months/years

Systems of innovation

CHAN

GEGO

VERNAN

CE

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Wall Street Mobile Technologies Conference, Bank's "Uber Moment" and Open Banking

Technology

Transcript of Wall Street Mobile Technologies Conference, Bank's "Uber Moment" and Open Banking