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Open Banking

Presentasjon avholdt under F3 FintechAcademy av Christian Løverås, Open Banking Lead i DNB.

F3 FintechAcademy avholdes ved inkubatoren F3 i Trondheim flere ganger i året, og er der fintech-miljøet i Trondheim samles under samme tak.

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Open Banking

  1. 1. Christian Løverås Open Banking
  2. 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. 3. It’s not about everybody making banks It’s about making banking available outside of the banks
  4. 4. Norway’s Largest Financial Services Group DNB
  5. 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. 6. Digital Customers 🌐 📱 💻 💸 2% 91% 96%
  7. 7. The EU Made Us Do It PSD2
  8. 8. 130,000,000,000 € Photo: The Bretton Woods Project >1% of EU’s BNP, per year
  9. 9. Cut costs Increase safety More innovation
  10. 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. 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. 12. New Business Unit Personal
 Banking Corporate
 Banking Large Corporates and International Markets New Business
  13. 13. 70 Data (25) Payments (15-20) Partnerships and New Ideas (5) New Tech Lab (8) Open Banking (8-16)
  14. 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. 15. And Big Players New Players
  16. 16. 19
  17. 17. What Can We Do? What Now?
  18. 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. 19. Death by a Thousand Fintechs HSBC Wells Fargo 🔪
  20. 20. 10% Group Revenue At Risk (585M€)
  21. 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. 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. 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. 24. (On Someone Else’s Computer) DNB In The Cloud ⛅
  25. 25. All photos: James Ball, DOCUBYTE, docubyte.com
  26. 26. APIs
  27. 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. 28. Open Banking = Free Banking? How will DNB make money?
  29. 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. 30. Typical API Business Models APIs Free Developer pays Developer gets paid Indirect
  31. 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. 32. Invitations & Conversations Products
 &
 Solutions
  33. 33. Products
 &
 Solutions Invitations & Conversations
  34. 34. World Premiere! Developer Portal
  35. 35. Which APIs First?
  36. 36. What Do You Need? New Services
  37. 37. DNB is so complex that only customers see the whole picture
  38. 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. 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. 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. 41. Christian Løverås cl@dnb.no DNB Open Banking developer@dnb.no Thank you!

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