Presentation to the Wall Street Technology Association, March 16, 2017

1. HOW OPEN BANKING IS LEADING TO AN
“UBER MOMENT” FOR THE BANKING INDUSTRY
John Marx
FSI Regional Director
March 16, 2017

2. 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.

3. INSERT DESIGNATOR, IF NEEDED3
DRIVING DIGITAL TRANSFORMATION
2010-13
CONSUMERIZATION
2013-16
MOBILE-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

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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

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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

6. INSERT DESIGNATOR, IF NEEDED6
OPEN API STANDARD

7. 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

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

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“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

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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.

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PSD2

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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
ENTERPRISE
SYSTEMS
COLLABORATIONANDLIFE-CYCLEMANAGEMENT
FRONT-END
DEVELOPER
BACK-END
DEVELOPER
DEVOPS

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RED HAT ENTERPRISE LINUX
Windows, 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 framework
Web services standards, SOAP,
XML/HTTP, RESTful HTTP
Transformation, 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

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AGILE AND DEVOPS
MODE 2
Agility
Agile, kanban
business-centric
Release in
days/weeks
MODE 1
Reliability
Waterfall, V-model
IT-centric
Release in
months/years
Systems of innovation
CHANGE
GOVERNANCE

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