1.
Christian Løverås
Open Banking

2.
▪ Christian Løverås (1972)
▪ Computer science at the University of Oslo
▪ 20+ years of digital transformation
▪ 10 years developing software for the media industry
▪ Co-founded 4-5 companies, 3 (successful) exits
▪ 2 years in DNB
▪ Innovation
▪ Partnerships
▪ Startups
▪ Accelerator
▪ Open Banking
Hello!

3.
It’s not about everybody making banks
It’s about making banking available outside of the banks

4.
Norway’s Largest Financial Services Group
DNB

5.
▪ Founded in 1822
▪ ~10,000 employees
▪ Offices in 16 countries
▪ Around 90 legal entities
▪ 34 % retail market share
▪ 34 % owned by the Norwegian government
▪ The world’s 313th largest bank
DNB

6.
Digital Customers
🌐 📱 💻 💸
2%
91%
96%

7.
The EU Made Us Do It
PSD2

8.
130,000,000,000 €
Photo: The Bretton Woods Project
>1% of EU’s BNP, per year

9.
Cut costs Increase safety More innovation

10.
Legislation Will Take Time
RTS SCA-hearing and handling
RTS SCA in effect in
the EU and Norway
Both PSD2 and RTS in
effect in the EU and
Norway
PSD2 in effect
in Norway and
the EU
13.01:
PSD2 in
effect in EU
Legal vacuum in the EU
2016
Hearing
“finansavtalelov”
Hearings and changes to
Norwegian law
Process in
the EU
Process in
Norway
Implications
Guidance for this period will be provided
2017 2018 2019
PSD2 decided in EU, with 24 months to effectuate
Partly ready - some
technical details not
ready
Legal vacuum
1 in Norway
Legal vacuum 2 in Norway
RTS SCA decided, with 18 months to
effectuate
PSD2 in effect in national legislation in the EU member countries
PSD2 in effect in national legislation in Norway
New RTS
SCA hearing
Thanks, PWC!
Rune Strømsnes and Lars Erik Fjørtoft

11.
• If you do less, you will get in trouble with the EU
• PSD2 is just a small start of Open Banking
• A great opportunity for DNB
• … aaand a threat
• But mostly an opportunity
• DNB is taking this very seriously
PSD2: The Bare Minimum

12.
New Business Unit
Personal
Banking
Corporate
Banking
Large
Corporates and
International
Markets New Business

13.
70
Data
(25)
Payments
(15-20)
Partnerships
and New Ideas
(5)
New Tech Lab
(8)
Open Banking
(8-16)

14.
▪ A complete development platform for DNB’s services
▪ Probably not the same services that we have today
▪ Also services from outside of DNB
▪ Banks are becoming distributors of financial services through software
▪ PSD2 TPPs: A new type of customers
▪ Requires a different type of support
▪ Software (API) lifecycle management
▪ Continuous Improvement, Continuous Deployment
▪ Cooperation and collaboration
DNB Open Banking

15.
And Big Players
New Players

16.
19

17.
What Can We Do?
What Now?

18.
• New competitors, new tech, demanding customers
• Scale through partnerships
• Contribute to an eco-system
• Build a platform
• We want to work together with the people with the best ideas
DNB Will Not Have All The Good Ideas

19.
Death by a Thousand Fintechs
HSBC Wells Fargo
🔪

20.
10% Group Revenue At Risk (585M€)

21.
▪ Borderless credit card
▪ Spend in 28 local currencies
▪ Foreign accounts are difficult
▪ Proof of address, etc
▪ Open an account in minutes
▪ Ideal when living or working across
countries
Transferwise MasterCard

22.
▪ Founded in 2005
▪ 60 M customers
▪ 18 markets
▪ 70 k merchants
▪ 476 M € purchased
▪ SKU-level details
▪ Banking license
▪ “One of Europe’s largest banks”
Klarna

23.
▪ It may be a good strategy
▪ But!
▪ Initiatives must be started, because there is no time to catch up later
What To Do? Wait and see?

24.
(On Someone Else’s Computer)
DNB In The Cloud ⛅

25.
All photos: James Ball, DOCUBYTE, docubyte.com

26.
APIs

27.
The Golden Rule of Platforms
“Eat Your Own Dogfood”
can be rephrased as:
“Start with a Platform,
and Then Use it for Everything."
Steve Yegget

28.
Open Banking = Free Banking?
How will DNB make money?

29.
▪ Visiting a DNB branch has always been free
▪ (If you can find one: We have closed 129 branches the last 3 years, only 59 left)
▪ The same services are still profitable when offered through APIs
▪ Loans, insurance, etc
Free Entrance

30.
Typical API Business Models
APIs
Free
Developer
pays
Developer
gets paid
Indirect

31.
APIs
Free
Developer
pays
Developer
gets paid
Indirect
Pay as you
go
Tiered Freemium Unit-based
Transaction
based
Revenue
share
Affiliate
Sign-up
referral
CPC CPA
One timer Recurring
Affiliate
Consumer
facing
Public web
Mobile/
Device
Content
acquisition
Included Upsell
Content
syndication
SOA+ Web/Mobile
SaaS
Internal
facing
Hanna Trygve Martin

32.
Invitations
&
Conversations
Products
&
Solutions

33.
Products
&
Solutions
Invitations
&
Conversations

34.
World Premiere!
Developer Portal

35.
Which APIs First?

36.
What Do You Need?
New Services

37.
DNB is so complex that only customers see the whole picture

38.
▪ Monitor “extreme weather” alerts
▪ Alert local handyperson
▪ Use IoT sensors to monitor frost
▪ Turn on heat when needed
▪ More IoT: Fire, water, movements, ..
▪ Automatically lock the “smart lock” when away
▪ Automate (AirBnB) rental
▪ Advertise house for when owner is away
▪ Notify local housekeeping person
▪ Something else?
▪ How can DNB help make it easier for the owner?
APIs for Holiday Homes

39.
68
▪ Report accident: Police and insurance company
▪ A facade for third party APIs?
▪ Order a taxi to the current location
▪ Find the nearest car towing service
▪ GET /insurance/car/towingservice/{latitude}/{longditude}
▪ Something else?
▪ How can DNB make it easier to develop new services?
APIs for Car Insurance

40.
▪ DNB’s internal services have been fully digitised
▪ Risk scoring, etc
▪ We also use APIs from Altinn and Kartverket
▪ Salary
▪ Tax
▪ Property information
▪ Two years work, lots of people
▪ No humans involved in the process
▪ Banks in other countries don’t believe us
▪ Will DNB offer (parts of) this process to others?
▪ “Risk scoring as a service”?
▪ “Mortgage as a service”?
Fully Automated Mortgage Process

41.
Christian Løverås
cl@dnb.no
DNB Open Banking
developer@dnb.no
Thank you!