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How can we fix the identity problem?
Digital identity is a core strategy for retail banks in the open banking era
David G.W. Birch (15Mb Ltd)
Open Banking Forum (Zurich, March 2018)
www.dgwbirch.com
@dgwbirch
v2
Open Banking Bank Strategies
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David G.W. Birch
author, advisor and commentator
Global top 15 favourite sources of business
information (Wired Magazine);
London FinTech Top 10 most influential
commentators (City A.M.);
Top 20 Fintech Influencer (JAX London);
Top five Leader in IDentity (Rise);
Top 10 Twitter account followed by innovators,
alongside Bill Gates and Richard Branson (PR
Daily);
Top 10 most influential voices in banking
(Financial Brand);
Top 50 blockchain insider (Richtopia);
Europe’s most influential commentator on
emerging payments (Total Payments).

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Moving to Open Banking
A model for shared understanding
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The Big Picture: Banking Eras

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Open Banking means Change
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A Note on Payments
Payment revenues heading to zero
Payments data more important than ever

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Bank Responses
Options for API-based strategies
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Dynamics
Open Banking separates the
“manufacturing” and
“distribution” functions
A new “packaging” function will
appear

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Technology
Manufacturing is about
efficiency and productivity
Packaging is about flexibility
and safety
Distribution is about security
and convenience
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Bank Responses

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Packaging: UK Open Banking Platform
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Focus on APIs
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Digital Identity as a Strategy
Source: Accenture (July 2017)
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What is Digital Identity?
We need a model for shared understanding
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The Three Domain Model
Time for “digital identity” – but what is it? We need some clear thinking.
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Government Example: NIST
Time for “digital identity” – but what is it? We need some clear thinking.

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Banking Example: BBVA
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Use Cases for Exploring Ideas
How can banks make digital identity into a business?

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Use Case: Payments
PSD2 and Instant Payments to drive a 37% decline in online card
volumes
Boosted by increased consumer convenience, Instant Payments will
overtake cards by 2025
Retail Instant Payments in Europe will hit €725bn in transactions
Single card payments set to decline from 40% to 11% market share
Instant Payments will become one of the main online payment tools
in Europe, accounting for roughly €338bn of direct online expenditure
Forecasts for 2027 by Icon (July 2017)
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Use Case: Financial Services
Review and monitoring

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Use Case: Gig Economy
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Use Case: Dating
Internet dating

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Open Banking Core Strategy
Where should banks focus?
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Identity is the New Money
“It’s not about payment. It’s about identity”
Jack Dorsey, Founder of Square
New York Times (22nd December 2013)
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in the future, everyone will be famous for fifteen megabytes
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post 1 Armadale Road, Woking, Surrey GU21 3LB, UK
call +44 1483 834631
contact dave@15Mb.ltd
visit www.15Mb.ltd
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