Financial services is under profound pressure to transform: legislative catalysts, heightened customer expectations and new fintech entrants are forcing banks and credit unions to re-consider their role in the banking value chain. Leading organizations are responding by moving from traditional paradigms of branch banking, to Banking-as-a-Service, where the bank becomes a platform of capabilities that can be accessed and monetized via APIs, to both internal and external consumers alike. Attend this session to learn how Coast Capital, Canada's largest credit union, is making this vision a reality.

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THEPATHTOOPENBANKING
HOWBANKSAREENABLINGOPENAPIs

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INTRODUCTIONS
CHARLESBALDERS
SENIORMANAGER–DIGITALINTEGRATION@DELOITTE
DIGITALBANKING–ARCHATECTURESTRATEGY&SOLUTONDELIVERY
Deloitte Digital Integration Leader
Digital Banking Platforms & Solution Architectures
Agile / LEAN Delivery
JAGBHOGAL
DIRECTOROFENTERPRISEARCHITECT,COASTCAPITALSAVINGS
Jag leads the architecture function for Coast Capital Savings. Jag
has been working within architecture and technology function
with financial and large corporations for over 20 years.
?

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AGENDA
TOPIC LEAD TIMING
APIs in Banking – Key Drivers & Trends Charles Balders 20 mins
APIs at Coast Capital Jag Bhogal 10 mins
Open APIs Charles Balders 15 mins

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APIsINBANKING–KEYDRIVERS&TRENDS

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CONCEPTUAL API REFERENCE ARCHITECTURE
Enabling APIs across the enterprise requires comprehensive API Management & Governance capabilities.
SERVICECONSUMERSYSTEMS/APPLICATIONS/MOBILEAPPS
API Portal
API Library /
Documentation
Portal Administration
Community Tools
ENTERPRISESYSTEMS/DATASTORES
DEVELOPERS
API Gateway Operations Management
Monitoring User Management
SLA Management Monetization
APIManagement API Gateway (API Consumption)
API Proxy
Authentication
Policy Enforcement
Protocol Transformation
DEVELOPERS
Direction of
flow of
response data
and arrow end
point denoting
API consumer
Real-time /
Batch / On
Demand
MultipleDistinct
IntegrationLayers
API Engine
Translation Mapping Rules Auditing API’s
Orchestration
Connectors / Adapters

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Modularity
Incorporate patterns such as
Microservices & Domain Driven Designs
to abstract functionality and allow
independent execution
Velocity
Ability to rapidly incorporate changes
and deploy to environments
Resiliency
Ability to recover from system
failures/disruptions gracefully
6
CLOUD NATIVE STRATEGY FOR API DEVELOPMENT
With APIs frequently being used to expose core services and integration, adopting a cloud native approach provides the capability to rapidly
develop, deploy & scale APIs .
Scalability
Handle increases in usage & load without
impacting performance or customer
experience
CLOUDNATIVE
APPROACH

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DRIVERS FOR API ADOPTION IN BANKING
The need to rapidly respond to changing customer needs and introduce new products & services is fuelling API adoption in the banking industry.
BACKEND Legacy Core Banking CRM
EXPERIENCE Mobile Responsive Web
Extreme Velocity to create Digital
Experiences Replacing Physical
Need to incorporate new
technologies e.g. FinTechs
Modernize legacy systems &
integrations
Expose bank services in new ways
(Move to OpenAPI)
API
API
PROCESS Service Originate Transaction
Creation of common ”OMNI Channel”
capabilities (Decouple Experience!)
SYSTEM Insights Account Product Customer
FinTech
FinTech
FinTech

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APIasa
PRODUCT
8
ESTABLISH TECH-SAVVY PRODUCT OWNERS TO DRIVE API AGENDA
Prior to embarking on API development, organizations need to ensure APIs have the clarity of a well-positioned product with a defined vision,
value and audience.
API Management & Productization goes beyond just technology roadmaps, it’s a business strategy
PRICING,PACKAGING&MONETIZATION
§ Establish pricing structures (e.g. by API,
by Customer, by Volumes)
§ Ascertain any bundling opportunities for
market
APIMANAGMENT
§ Control versions of APIs available in the
market
§ Release updates/fixes to the market
PRODUCTENGINEERING
§ Devise features/use cases for the API
§ Define roadmap
§ Design, develop & test
DEVELOPERCOMMUNITY
§ Focus on Developer Experience
§ Forge community to use & innovate on
API
PRODUCTSUPPORT
§ Provide API documentation – technical,
functional
§ Offer ongoing support – forums
PRODUCTMARKETING
§ Determine go-to market strategy
§ Identify target customers

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KEY FACTORS TO CONSIDER WHEN BUILDING OUT AN API
A holistic approach to development & delivery achieves the customer-centricity, modularity and velocity required for API products.
User Stories
Burndown
Leverage Agile
Delivery
Demonstrable functionality
per Sprint
§ Develop functionality iteratively
in deployable increments
§ Increase efficiency through
regular feedback cadences
§ Continuously design, develop,
test, and integrate features for
increasingly complete and stable
builds
§ Foster highly collaborative and
cohesive multi-discipline teams
that interact regularly during
Sprints
Cross-functional
Scrum
Consider the Developer
Experience (DX)
§ Take a developer centric view to
design and delivery
§ Employ a design-led approach to
craft meaningful user
experiences
§ Design based on rigorous
research & analysis
§ Build what is necessary and
sufficient
§ Trust but verify – test with real
customers
Wireframes
User Journeys
Personas
Mobile App
Single Responsibility
Principle (Microservices)
§ Leverage-and-layer on top of
existing assets and refrain from
ripping & replacing existing APIs
or data services
§ Minimize impact on existing IT,
and create a new layer of agility
to enable delivery of more
functionality faster
§ Think multichannel and design
device-agnostic and data-centric
APIs
§ Focus on the business consumer
when developing new APIs or
reusing existing services
API Management Platform
API Design
Product-Driven
Governance
§ Establish effective processes,
policies & cadences to manage
and monitor the build, test and
delivery of components in an
Agile environment
Project, Requirements
Management
API Management Platform
Cloud Hosting
Design for the Cloud
§ Leverage cloud infrastructure to
enable the scalability, agility and
availability needed to realize the
value of Microservices and
Continuous Integration and
Delivery
Scalable distributed
database
Build Automation
DevOps Enablement
from the start
§ Reduce bottlenecks observed in
the latter stages of the
development cycle
§ Enable accelerated software
build and deployments through
DevOps empowered Continuous
Integration and Delivery
§ Employ a toolchain to
automatically provision
environments and track, archive,
compile, package, test and
deploy code using pre-defined
parameters
Continuous
Integration
Automated Load
Testing

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APIsATCOASTCAPITAL

11. Private & Confidential / Property of Coast Capital Savings 11
Coast Capital Savings Transformation Journey
“Digital
Transformation
Journey
across Canada”
Superior Employee
Experience
Innovative &
Competitive
Coast Capital is embarking on a digital transformation journey
q Access to the right information
at the right time
q Productivity suites
q Strategic partnerships
(fintechs and technology
vendors)
q Investments in potential
new technologies and
business models
Superior Member
Experience
q Customer centric
architecture
q Banking anywhere,
anytime
q Data driven enterprise
Flexible & Agile
q Best of breed
q Plug & Play architecture
q Speed to market

12. Private & Confidential / Property of Coast Capital Savings 12
How Mulesoft is helping to drive transformation?
„ Enhances member experience via APIs and Microservices
„ Enabling quick time to market due to the reduced development and deployment
timelines
„ iPaas solution provides simplistic and quick approach to spinning up new
environments as needed
„ Investigating partnership options with fintechs and anticipating that Mulesoft
platform will provide the foundational APIs for integration
„ A new method of interaction with Tech-savvy customers and Fintechs
„ New capabilities to enable new partnerships in the financial value chain
„ Turn the bank’s services into a platform on which others can build valuable
services
Superior Member Experience
Flexible & Agile
Innovative & Competitive

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OPENAPIs

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HOW OPEN APIs IS DISRUPTING BANKING
Open APIs enable an app to connect with multiple, different financial institutions, rather than having to use a different app for each organization, creating new ways for
clients interact with their banks.
WITHOUTOPENAPIs
Bank
App
App
App
Online
Banking
Bank
App
App
App
Online
Banking
Bank
App
App
App
Online
Banking
§ Different apps and user experiences for each bank
§ Digital connections with the client are direct, dedicated, and closed
WITHOPENAPIs
Bank
App AppAPI API
AppAPI
Open
API
Bank
App AppAPI API
AppAPI
Open
API
Bank
App AppAPI API
AppAPI
Open
API
§ Disruption of traditional relationship between banks and their clients
§ Interoperability through APIs available to external consumers
Open
API
Customer
App
Open
API
Open
API
Regulated
Interoperability
Platform Bank
App AppAPI API
App
API
Open
API
Open
API
Banking-as-a-
Platform
API as a Channel
Bank

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CASE STUDY #1 – APIs NEW CHANNELS FOR BANKING AND AJACENT SERVICES
Examples:
§ App-to-App Payroll Services
§ App-to-App Payment Services
§ Straight-through Processing
§ Clients accessing loyalty points
§ Clients accessing identity
information for form-filling
Bank
App AppAPI API
AppAPI
Open
API
Customer
App
Open
API
A Spanish Bank has created new opportunities by opening APIs in their
European and the U.S. operations
§ Hackathons: The bank’s move comes after having hosted several hackathons with sample
APIs using cleaned, anonymized copies of big transactional data
§ Fintech Incubator: The bank also has a FinTech incubator program that aims to support a
network of new startup partners
App AppAPI API
AppAPI
Open
API Connect
Open
API Identity
Open
API Accounts
Open
API Cards
Open
API Money Transfers
Open
API PayStats

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App
App
App
16
CASE STUDY #2 – APIs AND BANKING-AS-A-SERVICE
An European Bank has created a banking and payments platform that it sells as a
service to other banks, large online merchants, and web operators
§ Full European banking license
§ Highly scalable platform allowing 2,000 registrations and 500,000 transaction per hour
§ Digital Multichannel approach for an enhanced and unique banking experience combining mobile, online
and social media banking
§ Standardized interface (Open APIs) enables fast and easy integration of proprietary and third-party
applications to increase customer value
Open
API
Open
API
Open
API
Examples:
§ Online Gaming Requirements
§ Large Online Merchants
§ eCommerce Support
Platform Bank
App AppAPI API
App
API
Open
API
Open
API
Bank
Open
API
API
API
API
Banking Services
Non-Banking Services
Payment Services

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CASE STUDY #3 – APIs AS AN ECOSYSTEM ENABLER
Examples:
§ 360 view across all a client’s
financial relationships,
§ Transaction aggregation and analysis
§ Non-bank intermediaries (e.g. digital
financial management, planning,
advice, marketplaces)
One U.K. Bank sells other banks products and gives customers a single view and
consistent user experience across all their banking relationships
§ It is a mobile bank being built from the ground up
§ Only offering one product: A current account with a card)
§ BUT, using Open APIs, the Bank incorporates other bank’s products into their app, focusing instead on
owning the user experience
Bank
App AppAPI API
AppAPI
Open
API App
Open
API
Fintech
App Open
API
Open
API
Open
API
Open
API
Open
API
Open
API
Open
API
Accounts Open
API
Cards Open
API
Investments Open
API
FX Open
API
Loans Open
API
Mortgages Open
API

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CASE STUDY #4 – APIs AND REGULATED INTEROPERABILITY
Examples:
§ In Europe Payment Services Directive
2 (PSD2) stipulates that bank
customers should have the right to
access their financial information
and connect it in anyway they want
putting an end to data
protectionism with the Access to
Accounts (XS2A)
§ The Midata legislation proposed in
the UK
§ Central Bank of Singapore initiatives
Ultimately, banks may not have a choice of opening up APIs, as we have seen with
PDS2 in Europe
§ With PSD2, the client’s banking app does not have to come from their bank, or from any bank
§ The user experience is separate from any specific financial institution
§ Clients could choose the app experience they like best, and use that one app to access different banks and
services in one place
§ The implication is that if clients are able to switch banks without changing their user experience, banking is
being commoditized
Open
API
Bank
App AppAPI API
AppAPI
Bank
App AppAPI API
AppAPI
Open
API
Open
API
Bank
App
FinTech
App
Financial Service
AppOpen
API
Open
API
Open
API
Open
API
Open
API
Open
API
Open
API

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