Open Banking Daryl Wilkinson Daryland Hobbes Agenda 1

Open Banking Daryl Wilkinson @Daryland. Hobbes

Agenda 1 What is Open Banking? 2 Why is it happening? 3 Why should bankers care? 4 What should we do? 5 Parting thoughts

What is Open Banking? Open Innovation • • • An innovation technique Harnessing creative abilities external to the immediate organisation Collaboration and co-creation of new solutions Open Data • • • A market intervention The ability for account holders to access their financial data more easily Greater transparency of account holders habits and future needs Open APIs • • A technology – Application Programming Interfaces APIs enable integration of distinct systems through standardization

What is driving Open Banking? P E olitical Innovation Fin. Tech Competition APIs Digital T echnological S conomic Investment PSD 2 L egal ocial Trust Empowerment Midata E nvironmental

Credit Agricole • French bank with open APIs and App Store • 18 new apps within first 6 months

Fidor Bank • German bank expanding throughout Europe • Fidor. OS is a standardised API infrastructure • Enable, integrate and promote apps and in-account apps from trusted partners

Open Bank Project • Open source API and App Store for banks • Banks publish APIs and invite developers to build apps • Speaking Bank • Kashflow • Time Balance

Why should bankers care? • Promotes competition • Facilitates disintermediation • Challenges vertical integration

Why should bankers care? Fundamental strategic question Architecture programme Regulatory project Ø What is our purpose? Ø Who are our customers? Ø How do we compete and make money?

What should we do? • Understand changing market structure • Assess competitive advantage and disadvantage • Reconsider value chain position • Refresh our mission • Revise our strategic priorities • Review our people and assets

Parting thoughts • We have seen this combination of regulatory and market dynamics before • In a market where vertical integration is no longer the norm and components of the industry are opened to competition • It is time to reinvent yourself and your product, it is time to self-disrupt!