17 December 2017
visit www.aciworldwide.com

Sibos 2017: API or the highway

18 October 2017  |  13275 views  |  0 Go!

As PSD2 looms into view, open banking and APIs have been central to discussions at this year’s Sibos, with banks grappling with the threats and opportunities presented by the opening up of data.

Introducing one panel on the subject, Qatar National Bank’s Leda Glyptis noted that just two years ago an API session had failed to draw an audience in a the small Innotribe stream. Now she was looking out to a packed room in the main conference.

This reflects the fact that banks are taking open APIs far more seriously - and not just because many are being forced to by the changing regulatory scene. An audience poll found that 43% have an API strategy, 42% are thinking about the need for one, and just 16% have no plan.

BNY Mellon’s Saket Sharma told the assembled bankers that they should not think in terms of discrete API strategies, but see the issue as an integral part of their overall digital plan - something all FS firms accept they must have.

This is because APIs are simply delivery methods - what matters is the bank’s intellectual property, its data and algorithms.

Asked about the biggest challenge related to open APIs, more than half of the audience picked value generation. This prompted David Andrzejek, from Apigee, recently acquired by Google, to remind them that banks have been overtaken in the rich lists by Silicon Valley platforms which generate revenue in very different ways.

NatWest’s Damian Richardson picked up the theme, conceding that PSD2 would probably hit payments revenues but insisting that this just means new strategies, taking advantage of open APIs, would need to be found.

Richardson had a busy day, also appearing on a panel dedicated to the UK’s Open Banking initiative, set to arrive in January. While cautioning that Open Banking will likely get off to a slow start, the speakers spoke enthusiastically about its potential.

Vocalink’s George Evers says that the initial concern among banks that fintech challengers will swarm down like locusts, stripping all of the data, has passed. The two sides have become “friends with benefits”, recognising they have different strengths.

In fact, Richardson suggested, by getting fintechs involved, the banks have a far better chance of finding the services that really cut through with customers and bring the wave of innovation that will help banks find new revenue streams.

One firm hoping to help facilitate the new API-based era of fintech-bank cooperation is the Open Bank Project. Its boss, Simon Redfern bounced around the Fintech Theatre stage to extol the value of APIs; they can even - as he demonstrated - be used to produce some atmospheric music on the synthesizer.


Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Canadian lenders issue open banking warning

Canadian lenders issue open banking warning

03 October 2017  |  9893 views  |  11 comments | 21 tweets | 20 linkedin
PSD2: Brits don't trust retailers and social media platforms with bank details

PSD2: Brits don't trust retailers and social media platforms with bank details

02 October 2017  |  13783 views  |  12 comments | 38 tweets | 64 linkedin
HSBC moves into open banking

HSBC moves into open banking

28 September 2017  |  38857 views  |  12 comments | 65 tweets | 124 linkedin
Open Banking releases payments initiation API for UK bank data sharing

Open Banking releases payments initiation API for UK bank data sharing

05 July 2017  |  16266 views  |  0 comments | 35 tweets | 31 linkedin
Nordea begins API pilots

Nordea begins API pilots

04 July 2017  |  12036 views  |  0 comments | 16 tweets | 17 linkedin
EBA rejects Commission amendments on screen scraping under PSD2

EBA rejects Commission amendments on screen scraping under PSD2

30 June 2017  |  23636 views  |  16 comments | 46 tweets | 63 linkedin
Countdown to PSD2: Finextra surveys financial institutions on readiness and strategies

Countdown to PSD2: Finextra surveys financial institutions on readiness and strategies

05 June 2017  |  13792 views  |  0 comments | 10 tweets | 5 linkedin
European Commission calls on EBA to rethink screen scraping ban

European Commission calls on EBA to rethink screen scraping ban

22 May 2017  |  7554 views  |  0 comments | 17 tweets | 21 linkedin
PSD2: An open opportunity

PSD2: An open opportunity

30 September 2016  |  11636 views  |  1 comments | 24 tweets | 30 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comvisit www.aciworldwide.comvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
10650 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
10295 views comments | 18 tweets | 36 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
7684 views comments | 10 tweets | 10 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7349 views comments | 19 tweets | 22 linkedin
hands typing furiouslyReshaping Customer Engagement & Da...
6771 views 0 | 4 tweets | 2 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job