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Banking on APIs: How do we move forward?

Tom DurkinManaging Director – Head of GTS Digital ChannelsBank of America Merrill Lynch

Aubrey HawesSenior Director – Product MarketingFinancial Services Global Business UnitOracle

NACHA Payments 2017Austin, TX April 23-26

Aubrey HawesSenior Director – Product MarketingFinancial Services Global Business UnitOracle

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Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Copyright ©2017 Oracle and/or its affiliates. All rights reserved.

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The Application Program Interface (API) Economy

Netflix has used its API to extend its service to over 200 different devices -- television, gaming devices, remote controls -- on all major

mobile platforms in less than two years.

About 65% of banks' new technology spending —was deflected over the last 24-36 months to

address regulatory gaps in compliance, risk, security and fraud.

Big Banks Will Look More Like Google by 2025, American Banker

75% of the top 50 banks in the world will open their API and 25% of these

banks will have their app stores for customers. Gartner research

US companies alone will spend nearly $3 billion on API management over the next five

years. International sales will take the global market over the billion dollar mark in

annual revenue. (Forrester)

By making your own core competencies

accessible via API you become part of an ecosystem and no longer have to

develop all ideas on your own.

Wirecard Bank

55

Open APIs – the Opportunity

3

5 B2C

Source: The Payments Innovation Jury Report 2013

66

Evolution of APIs

Source: ProgrammableWeb – January 7, 2015

77

Growth of APIs

88

API Initiatives in the Banking World

99

Open Banking APIs

Innovation & Monetization Corporate Access

Efficiency & Standardization Regulations & Market Initiatives

Enabling Fintech

3rd Party Developers (App Store)

Consumer Financing

AI, Chatbot, IoT....

Corporate On-

Boarding

Global Payments

ERP Integration Recon

Customer Experience

Niche Capabilities

Process Digitization

Service Automation

PSD2Open

BankingFramework

Country SpecificCentral Banks

Regtech

OpenBanking

APIs

Graphics provided by Oracle

1010

Financial Services Open APIs

End to End Customer Lifecycle Services

Business servicesdocumented

APIs are explorablethru

Graphics provided by Oracle

1111

Comprehensive and Well Documented Digital Banking API repository

Platformification

Buy & ExtendAs opposed to

Build

Graphics provided by Oracle

1212

Oracle Vision for Financial Services API Enablement

It’s about Innovation, not (only) Regulation

Innovation and Revenue can go

TogetherThink Bigger thanthe API Frontend

Tom DurkinManaging Director – Head of GTS Digital ChannelsBank of America Merrill Lynch

1414

Evolution of Banking Channels

Banking services integrated into client business processes

Branch

Data Transmission

Online Portal

Mobile

Banking for the Future

PC Banking

TTY/VRU

• Evolution into real-time integrations and interactions• Direct integration of banking services into corporate

business processes• Clients access bank services on their own terms• Opens up new business services• New data consumption experiences• May not require use of traditional banking channels• Enabled by ‘always-on’ APIs - 24/7/365

Commercial CardsGlobal Trade

Fulfillment & Servicing

Payments & Reporting

What is the Bank of the Future?

1515

Next Generation Access to Banking Services

APIs Expose Services to Clients

Real Time

‘Always on’

File Transmission

Online

Payments Liquidity

CardsTrade

Banking services bundled and pushed through defined

channels

Mobile

ClientTMS or ERP

Banking services unbundled and made available through APIs

TMS/ERP Vendor

Alliances3rd Party Apps Partner Banks

& Payment Networks

External API Management

Gateway

PaymentInitiation

PaymentApproval

KYC DocUpload

Liquidity View

Alert &Notify

APIs are used by:• Internal bank services & Gateway Merchants• Payment Service Providers (PSD2)• Client vendors (ERP, TMS vendors)• Fintech providers• Cloud hosting providers (AWS, Microsoft)• SaaS solutions (Quickbooks)

• Information/guides• API Catalog• POC & test Sandbox

UnbundleBanking Services

GTS Products and Services

Internal API Management Gateway

MS Office Apps

1616

Alignment to Microsoft® Office Roadmap

Next Generation Banking Services

Microsoft Excel remains the #1 cash positioning and analysis tool for companies of all sizes.

Microsoft Office strategy is for cross-platform collaboration and productivity• Designed for ‘cloud and mobile first’ - Office 365*: 70% Revenue Growth, 18.2M consumer users• Integrated approach to all Office products to enhance productivity – esp Excel, Outlook, PowerPoint• Excel is Microsoft’s user interface for business intelligence• Office 365 runs on Windows, iOS and Android• Build once, deploy to multiple operating systems

CashPro Accelerate 2017 – a Web-based App in Excel• API-based access to banking services - enables next generation of banking services• Retains Excel ‘power-user’ experience• Leverage Microsoft PowerView for Business Intelligence and analytics• Extensible into additional Microsoft Office applications used by clients• Potential for further integration with other bank products (eg: liquidity) and vendor systems

*Source: Microsoft Q1 FY16 Earnings Release

1717

Download from the Office Store

Office Web Application Runs Inside Excel

• Users will download the application from the Microsoft® Office App Store

• Applies to Office 2013* and later

1818

APIs – Real-time integration for treasury

Modify Account Signatories

Access Aggregate Account Services

Initiate Real-time Payments

Real Time

‘Always on’

Examples of APIs and vendors for illustration only

Access to DiscreteBanking Services

APIs Enable

“Open Banking is about making everything for sale. It provides a new way to increase digital revenue for the banks that are willing to think differently... Open Banks and FinTechs will continue to erode margins and customer relationships for those banks that don’t.”

- Kristin Moyer, Gartner, Research Vice President & Distinguished Analyst

1919

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