With 38 days to go, how to
pivot to turn PSD2 to your
strategic advantage
Ben Robinson, Chief Strategy Officer
Fintech Connect, 6th of December 2016
@robinsonbenp
Open Banking legislation isn’t a Europe only phenomenon…
…and should be seen in a broader context
The big strategic shift
InfluenceControl
Learning faster
NetworksProprietary assets
Working faster
Pull
Leveraging position
Open
Push
Defending position
Closed
How
business
must
adapt
Traditional universal banking
Own products
Own Infrastructure
Channels
Front office
On premise hosting
Settlement ReportingPayments
processingProduct servicing
Current account
Secured lending
Deposits
Transaction processing Foreign Exchange
Trading Investment
SME Lending
PFM
Unsecured lending
Wallets
Fintech challenge
FX Transfer
Payments/Wallets
Unsecured personal lending
SME Lending
Social Trading
Mobile money
Automated retail investment
Risk
Platform challenge
Infrastructure players 8
Hosting
Settlement ReportingPayments
processing
Product
servicing
Infr
astr
uctu
re
API Layer
The aggregator model
Bank as aggregator
Vertical integration matters 10
[Image: Hollywood Reporter]
Banking model for the Digital Age
FX Transfer
Payments/Wallets
Unsecured personal lending
SME Lending
Social Trading
Mobile money
Automated retail investment
Risk
Digital
Channels
Front End
Own product
factory
(current
account,
secured
lending,
transactions)
Infrastructure
Cloud-based
hosting
AP
I Layer
A post-GDPR model
Tide already turning?
Source: Y Combinator
Banks could be great aggregators
The Bank
as a
trusted
advisor
Financial education Safe custody of data and digital assets
True, actionable insights Right products and services
Access to trusted partners at
discount ratesImpartial, personalised advice
A lot at stake
2017e 2017-2025macro drivers
2017-2025digital
disruption
2025edo nothing
Boost fromdigitization
EcosystemPlatformBanking
2025SuccessfulEcosystem
Strategy
8.2%
5.2% 5.2%7.7%
14.0%
1.1%
4.1%2.5%
6.3%
Digital disruption Mitigating effect
Future Banking RoE levels
Ditching the
legacy
Systems upgrade 16
Cultural change
required
Opening up
existing platforms
Selling third party
products
Sharing customer
data
The hardest change?
Thank you
@robinsonbenp
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