Open Banking & Pagamenti real-time

Occasione unica per le banche

Davide GirompiniGlobal Leader Payments and Transaction ServicesIBM Global Markets

1

“adjust the business model to digitization” … shifting from transactions to services and open economy

Mario Draghiformer ECB ChairmanECB pressroom, Sept. 2019

• credit institutions• adding verticals as payments, investing,

insurance, capital markets

• embedding banking horizontally inside non-banking ecosystems

• personalising advisory offers on digital

FROM:credit centres of money creation

TO:competence centres and ecosystem players

Blur transaction-oriented vertical lines to get:

• Horizontal = providing rich enough services clients can pay for, but also

• Deeper = access new pieces of the client value chain and stretch to the point of digital acquisition (account-to-account)

2Il Salone e Pagamenti 2020

A2A real-time payments initiatives and solutions (Bancomat Pay, MyBank, EPI, …) reinforce Customer services leveraging Open Banking

Leveraging internal / payment data on external ecosystems to retain control of financial services across digital offers.

10y

20y

30y 40y

50y

60y

EDUCATION

RETAIL

AUTOREAL ESTATE

TRAVEL

HEALTH CARE

--- OMNI-USERS

--- OMNI-BUSINESS / CORPORATE

--- OMNI-INTELLIGENT CONNECTION

MORE

REQUIREMENTS

MORE

PROD / SERV

PROVIDERSMORE

PROD / SERV

SOLUTIONS

MORE

VALUABLE FSS

o Connect final clients with SME businesses and retain user proximity

o Plug in advisory services

o Spring new value across banking and non-banking interactions

o Enable partners value on business oriented ecosystems3

Il Salone dei Pagamenti 2020

Open Banking and payments add value to business strategy by retaining a data advantage in the shift from core to interface

CONTEXTUAL BANKINGNon-banking ecosystems of users

BUNDLED BANKINGTrusted Advisor | Marchant Bank

CORE BANKING• PAYMENTS• FINANCIAL PRODUCTS

USER

moreself-directed

offer-driven

* ECB, Working Paper Series07/2020

demand-driven

lessself-directed

INTERFACES• RELATIONSHIPS• INFORMATION BASED SERVICES

“Superior information and communication enable

banks to exert market power” *

ISO 20022, resilient, open source, highly scalable

Payments data-centric layer turns a threat into an opportunity: retaining client proximity and their data to enrich new business model propositions.

Risk BigTech disintermediation Risk of commoditization

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Il Salone dei Pagamenti 2020

TRADITIONAL

DIGITAL

CONTEXTUAL

BUNDLED

TRADITIONAL DISTRIBUTION

DATA-DRIVEN DISTRIBUTION

INTELLIGENT ENGAGEMENT

PR

OD

UC

TS

PR

OD

UC

TS

SE

RV

ICE

S

CL

OS

ED

EC

OS

YS

T.

OP

EN

EC

OS

YS

T.

OU

TP

UT

OU

TC

OM

E

US

ER

EX

PE

RIE

NC

E

SYSTEM INTELLIGENCE

EQ

IQ

Bank of the FutureBank digital maturity towards ecosystems and advisory offers.

HIGHERBUSINESS

VALUE

LOWERBUSINESS

VALUE

currently more focus in China , India, SE Asia

currently more focus in NA, Europe

5

Il Salone dei Pagamenti 2020

The journey from a traditional Public Sector Bank to the largest bank led digital marketplace

103 partners are now live on the platformLifestyle Market

Place

>60% new customer acquisition 18-30Y old

100+ partners onboarded online marketplace

5x growth in pre-approved personal loans base

(< 1% delinquency on PAPL portfolio)

>75k per day digital customer acquisitions,

4Mn active daily interactions

Up to 65% conversion rate on Amazon offers

through YONO (higher than Amazon itself!)

>10x growth in funds transfer, bill payments,

fixed deposit and card payments6

Il Salone dei Pagamenti 2020