How can you monetize your APIs? Head of Capgemini Digital Banking, Cliff Evans, shares his insight.

1. API Monetization Strategies
API as a revenue channel
Cliff Evans

2. A new ecosystem comprising several stakeholders is arising and
APIs are a key enabler for this future model
Banks’ Perception of Other Entities Being
Ecosystem Contributor (%), 2018
17%
4%
13%
25%
17%
33%
13%
25.0%
8.3%
16.7%
33.3%
20.8%
37.5%
16.7%
54.2%
12.5%
37.5%
41.7%
25.0%
54.2%
37.5%
2016 2018 2020
BigTechs
Retailers
Telcos
Insurance
Travel and Hospitality
Challenger and Digital-
only Banks
FinTechs
Source: Capgemini Financial Services Analysis, 2018
Developers
Other
Businesses
FinTech
Customer
Other
Banks
Bank
Future Banking Ecosystem
While presently banks view these non-banking players as competitors, they expect them
to become more of a partner in the future banking ecosystem.
While presently banks view these non-banking players as competitors, they expect them
to become more of a partner in the future banking ecosystem.

3. Banks/Insurers are struggling to make progress monetizing APIs
Key Business Questions
• How can we enable new business models
and leverage Fintech innovation?
• How do we use APIs to create new revenue
streams?
• How do we use APIs to amplify existing
revenue streams?
• What monetization models are
appropriate?
• How do we select and reach out to
customers?
• How can we increase our market
profile/brand position?
• With or without, APIs how do we defend
against disintermediation?
Key Business Questions
• How can we enable new business models
and leverage Fintech innovation?
• How do we use APIs to create new revenue
streams?
• How do we use APIs to amplify existing
revenue streams?
• What monetization models are
appropriate?
• How do we select and reach out to
customers?
• How can we increase our market
profile/brand position?
• With or without, APIs how do we defend
against disintermediation?
API plans are now CEO and Board topics, no longer the sole domain of the CIO/CTOAPI plans are now CEO and Board topics, no longer the sole domain of the CIO/CTO

4. Capgemini’s Open Banking platform provides the accelerators for rapid test and learn through
to production (using Mulesoft running on AWS)
Industry standard
domain models -
BIAN
Micro services
based middleware
Complete auto
provisioning
End to end DevOps
tooling
Developer portal
API sandbox
AIE innovation
ecosystem
EnablingAgilityEnablingAgility
SecuritySecurity
Digital
Banking
Platform of
the Future
OpenInnovationOpenInnovation
Open APIsOpen APIs
API factory
blueprint
API
analytics
DDos protection
End to end
encryption
Two-way secure
digital trust
Explicit customer
consent
API Gateway
Pre-built Open
Banking API
Standards
(PSD2, CMA…)

5. API Case Study using our platform: Use Cases being monetised
Using FinTech as a channel for Retail Customer Acquisition
Information Services for Wholesale Customers
Social Media Payment Gateways (FB Messenger)
Identity and Trust Validation for Startups
Seamless Foreign Currency on Travel Site
In device seamless payment reminders
This channel met all its goals within 2 quarters with Board and shareholder visibilityThis channel met all its goals within 2 quarters with Board and shareholder visibility

6. Best Practices around API-amplification as an external channel
Select &
validate
Design &
prototype
DeployMarket &
manage
1
2
34
5
Extend
API
lifecycle
Ideation,
prioritization, and BD
will continuously occur
throughout all Channel
activity
Within that continuous
loop, top-priority
functionality will be
developed, deployed,
and grown

7. Operationalizing the Channel
Product Management Office
Scrum Office
LoB API
Business
Team
LoB API
Tech Team
API definition
How will you woo
and reach the API
consumer?
How will the bank make
money?
Who will you target with this
API?

8. API Economy: Four Basic Monetization Models
API
monetization
models
Free
Partner
pays
Partner
gets paid
Indirect
Influence
Pay as you go
Tiered
Freemium
Transaction Fee
Revenue Share
Affiliate
Service
Awareness
Consumer
Facing
Internal Usage
Pay as you go , No minimum fee
First 10 calls free, Tiered pricing for every bucket of
100 calls
Free for basic, More information premium pricing
One time fee + % of transaction
Share of revenue flows
One Time acquisition costs and option to recur monthly
Awareness of banking services (ATM locations)
Services for consumer facing apps (interest rates)
Mobile app consumption

9. Key Lessons Learned…
Need to
develop a
"Try, Test and
Adapt"
mindset
(Nimble
product
teams)
Automated
Provisioning
of
Environments
is critical
Security is a
big deal.
Involving Risk
and
Compliance is
important
Analytics of
what is being
used should
drive new
product
features
Soft releases
with pilot
customers
gives better
insights
Engaging
Developer
community is
different;
Think about
Distribution
strategy
API Pricing is
a constant
evolution

10. Within 8-10 weeks you can develop a roadmap with prioritized
set of API monetization opportunities
Business Questions
How do we prioritize API
monetization opportunities?
How do we prioritize API
monetization opportunities?
What is the roadmap?What is the roadmap?
Which specific APIs
should be developed?
Which specific APIs
should be developed?
Business Strategy implications
Innovation ecosystem map
Evaluation of potential process/data assets
Summary of internal Business Technology capabilities
12-18 month roadmap
60 day mobilization plan
Prioritized list of potential APIs
Deliverables
11
22
33
These deliverables rapidly focus and mobilize API investmentsThese deliverables rapidly focus and mobilize API investments

11. Agile Connections
at Scale.Q & A
For More Information Visit Us at:
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12. This presentation contains information that may be privileged or confidential and
is the property of the Capgemini Group.
Copyright © 2018 Capgemini. All rights reserved.
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