apidays LIVE Hong Kong 2021 - API Ecosystem & Data Interchange August 25 & 26, 2021 API Economy in Financial Services Siddhant Agarwal, Developer Relations Lead at Zwitch.io

1. API Economy in
Financial Services

2. Hello :-)
Siddhant Agarwal
Developer Relations Lead,
Open Financial Technologies
@sidagarwal04

3. What is API Economy?

5. But why now?

9. How does APIs power
FinTech?

11. Banking Products and Services:

13. Behind the scenes_
Step 1: Banks will develop APIs for its product or services and externalise them so
a partner (third parties) can use those APIs.
Step 2: Third parties can consume the APIs and launch products.

14. Benefits of Banking and Financial APIs_
● Improved Customer experience
● Make Continuous innovation
● Launch products to market faster
● Realise new revenue opportunities more quickly
● And many more with less cost!

15. Build your own banking
& financial products.
#StartWithZwitch
A full-stack API banking suite to embed
financial services into your product.

17. Come, build your own
banking platform
Our comprehensive 300+ API banking suite brings together
the essential technology to help you launch

18. Sign-up Now_
https://dashboard.zwitch.io/
API Docs:
https://developers.zwitch.io/reference

19. Join our Zwitch Dev
Community_
bit.ly/slack-zdsc
commudle.com/communities/zwitch

20. Connect with us_
@zwitchdotio

21. How does the future
look like?

23. Thank you_
Siddhant Agarwal
Developer Relations Lead,
Open Financial
Technologies
@sidagarwal04

24. How Zwitch Can Help Businesses?_
Plug-and-play banking
and financial APIs for
businesses
Integrate low/no-code
APIs or build features
on top of it
Send / store / receive
money or do KYC /
compliance with APIs
4+ years ex. in
neo-banking space;
Partnered with 18+ banks
Developer-friendly
APIs; Easy
documentation with
digital on-boarding
Seamless switching
from sandbox to going
live
Use APIs like any SaaS –
while Zwitch manages
partnerships &
compliance
Business can reduce
their go-to-market time
About
Zwitch
For
Businesses

25. Glimpse of Zwitch Product-base…
We are Adding New APIs Every Month_
Categories APIs Description Sectors / Use-cases
Save / Store
Current Account &
Savings Account (CASA)
• Entire digital journey to open current / savings account for users
• Add beneficiaries, send/receive money, fetch statement etc.
• No physical KYC requirement
Consumer / SME focused – Any business
who wants to provide native banking
experience to its users
Virtual Account
• Virtual accounts like physical bank accounts but can open on the fly
• Can be used for collection & reconciliation or as a wallet
• No KYC requirement for users at all
Almost all businesses of any shape and
size
Send
Payout
• Make payouts from your account to users / vendors to their bank
accounts, UPI handles via NEFT/RTGS/IMPS
Almost all businesses of any shape and
size
Penny Drop (for
Beneficiary Validation)
• Verify user’s bank account details
• Verify user’s UPI details
Financial companies & other businesses
Collect & Reconcile Virtual Account
Business can collect payments in virtual accounts which can be
auto-reconciled against invoices
Almost all businesses of any shape and
size
Spend UPI / Cards Assign UPI handles or issue cards linked to accounts Consumer / SME focused business
KYC / Compliance
Aadhar Verification
• 2 factor OTP-based authentication
• For users who have linked their phone number to Aadhar
Financial companies,
digital lending etc.
PAN Verification Verify user’s PAN on the fly Financial companies & other businesses

26. Drive your User Interaction with
Current / Savings / Virtual Account at Core_
Note: CASA – Current Account Savings Account; VA – Virtual Account
Each of these features / products can be embedded together or separately into your existing platform
Box represents WIP
Collect & Reconcile
Money
Account
Current / Savings /
Virtual
Store Money
Payout Money
(NEFT/RTGS/IMPS/UP
I to accounts / cards
/ VPA)
Spend Money
Via UPI, Cards
Accounting Taxation
Invest Credit
Cross-Border
Payouts can be triggered based on
time-stamp, event or on conditions
met (based on merchant’s system)
KYC &
Compliance

27. Store money with_
Current Account
Savings Account
Virtual Account

28. Imagine the Possibilities if your Users can Access
their Bank Account from your Platform?_
Store Money CASA
1. Open new savings / current account for users within the
platform
2. Post integration of banking APIs in user interface, users can
do net banking from the app itself
3. Use app to check bank statement, add beneficiaries, make
transfers, pay online using assigned UPI handle etc.
4. Issue debit card linked to savings / current account to
withdraw cash
Own the netbanking experience within your platform
Open a new bank
account digitally
Fetch bank statement
Do transactions-
NEFT/RTGS/IMPS
User Interface
User ABC
+ Account Details
+ Banking

29. Adding Bank A/c for your Users could Help you Drive
Greater Engagement, Retention & Monetization
Make money on float income & earn interchange
(if you provide cards to your users)
Traditional / current netbanking interfaces are a
one size fit all
User keeps coming back to access
bank account
Offer native & much better netbanking
experience as per your TG
Most users have large appetite for more banking
products, as they are massively underserved
Build functionalities – loans, cards that serves
your users’ need
Higher stickiness -> Higher ARPU /
Contribution
Benefits of
Adding
Banking
Layer
Store Money CASA

30. In some cases, Virtual Accounts as Interoperable Wallet
might suit needs better
Benefits of Virtual Accounts
Open VAs on the fly
Limitations of Virtual Accounts
Can build your own logic on money
moving in & out of VAs
Provide spend capabilities – cards or
VPA – on top of VAs
VAs have no expiry date neither any
maintenance/annual fee
Supports NEFT/RTGS/IMPS/UPI txns.
No KYC requirement to open VAs Can’t opt for cheque book
Can’t avail credit basis VA statement
Can’t earn interest like savings account
Store Money VA
First 6 digits
for Zwitch
Next 7 digits are
for Zwitch’s
merchants i.e.
YOU
Next 15 digits are
for YOUR
customers / users /
suppliers etc.
Max. 28-digit Virtual
Account Number provided
by our banking partner – YES
Bank
3 6 3 6 3 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

31. Collect & Reconcile money
with_
Virtual Account
VPA

32. For every customer /
transaction a new VA is
created for collection
Sells product / service
to customer
Company Customers
Virtual Ac 1 / VPA 1
Virtual Ac 2 / VPA 2
and so on…
Customer 1
Customer 2
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment
Auto-trigger money from
below VAs to your account
Collect & Do Payment Auto-Reconciliation with Virtual
Accounts (VAs) and Save Those Man-hours
1. Customer directly transfers money to
Company via NEFT / RTGS / IMPS / UPI
2. Company saves on % fee paid to PG vs
low single digit fixed fee / transaction
3. Works well for - closed group txns.,
repeat purchase or large ticket
Benefits for Company
Collect & Reconcile

33. Payout money from_
Current Account
Savings Account
Virtual Account

34. Vendors
Suppliers
Salaries
Other Payouts
Automate Payouts from Account for all your
Business Needs
Account
Do triggered/event-driven payout –
no manual intervention required
Do beneficiary validation
(bank / UPI) before making
any new payouts
Do single / bulk payout without
logging to netbanking
Still today, businesses do payouts -
which are manual, takes time &
error-prone
From Current,
Savings or Virtual
To Accounts,
Cards or VPA
Payout Money

35. Spend money via_
Cards (Physical/Virtual)
UPI VPA

36. Issue Cards, UPI VPA to Users: Brand yourself & Add
New Revenue Stream
Provide cards or UPI VPA (handle) linked to user’s account – BRAND yourself & earn additional revenue
Provide physical or
virtual cards to your
users
Earn interchange
revenue
Scan QR code
to pay offline
Swipe physical
card on offline POS
Pay online
+
How it benefits
a business?
Own the
‘Branding’
Have control &
visibility
Reward your users
via signature reward
programs
Provide UPI handle
(VPA) to your users
USER
PAYS
Spend Money

37. KYC & Compliance_
Aadhar Verification
PAN Verification

38. Authenticate Aadhar & PAN of your Users: Good Practice
to Prevent yourself from Online Fraud
Do OTP based 2 factor authentication to verify user’s Aadhar details
User inputs its
mobile number
linked to Aadhar
System generates
an OTP and sends to
user’s mobile
173925
OTP
User inputs OTP &
system verifies if the
OTP is correct or not
Post verification,
system can fetch user’s
Aadhar details
Also, authenticate user’s PAN
User inputs its PAN
APIs fetch user details
linked to PAN
KYC/Comply

39. Logistics Company
Account
Driver’s Wallet
Driver Sub-Virtual
Account & UPI VPA
When a driver makes a payment, money moves from Company’s master virtual account for amount X to merchant
After the transaction, API triggers payout from
driver’s wallet to company’s master virtual
account
Company Master
Virtual Account
Logistics – Virtual Account as a Wallet
A virtual account is opened,
and a UPI VPA is assigned to
this account
Make P2P transfer
Scan QR code to
pay offline
Company transfers money
from its account to driver’s
wallet for services rendered
Driver can use VPA to make a
purchase for any amount (X)
Pay online

40. Digital Lending – Virtual Account as a Wallet
Borrower / User Lender / Company
User Virtual
Account
Company opens a VA for
its users
Company Virtual
Account
Primary master virtual
account for company
User makes EMI/loan payment via this VA; Company can
incentivize user to use this VA to provide add-on products
Company transfers loan to this VA, no beneficiary account
validation required. Money stays in this VA
Also, UPI handle (VPA) is
assigned to every VA which
can be used to
Company pays
pay-per-use fee instead of
% fee
Manage
expenses
Use as capital
expenditure
Pay back other
outstanding loans
Benefits for company
Pay for business
operations
Utilize VA usage to provide
add-on services

41. Real Money Gaming – Virtual Account as a Wallet
User / Player Company
User Virtual
Account
Company opens a VA for
its users
Company Virtual
Account
Primary master virtual
account for company
For payin, user makes using VA; confirms payin via OTP,
same amount is debited from user’s VA
Company payouts to this VA, no bank restriction on transfer
amount, no KYC required. Money stays in this VA
Also, UPI handle (VPA) is
assigned to every VA which
can be used to
Company pays
pay-per-use fee instead of
% fee
Pay online Make P2P
transfer
Or business can
restrict it to be used
on its platform
Benefits for company
Scan QR code to
pay offline

42. Gig Economy / Manpower Companies – Virtual Account as a Wallet
User Company
User Virtual
Account
Company opens a VA for
its users
Company Virtual
Account
Primary master virtual
account for company
User provides service via company’s platform
Company transfers fee to this VA, no beneficiary account
validation required. Money stays in this VA
Also, UPI handle (VPA) is
assigned to every VA which
can be used to
Company pays
pay-per-use fee instead of
% fee
Manage
expenses
Use as capital
expenditure
Pay back other
outstanding loans
Benefits for company
Pay for business
operations
Utilize VA usage to provide
add-on services

43. Offline Stores / Restaurant Chains – Virtual Account as a Wallet
User Company
User Virtual
Account
Company opens a VA for
its users
Company Virtual
Account
Primary master virtual
account for company
User buys/receives company’s gift card or e-coupon
Company shows gift card equivalent money in user’s VA
Based on user behavior
can incentivize monetarily
in the form of cashback
Benefits for company
User can this VA to pay for
product / service on the
company’s payment page
Cost saving - Company doesn’t
need to pay digital coupon
companies

44. E-commerce/B2B – Virtual Account (VA) for Collection & Payment Reconciliation
For every customer /
transaction a new VA is created
for collection
Sells product / service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment

45. FMCG – Virtual Account (VA) for Collection & Payment Reconciliation
For every distributor /
transaction a new VA is
created for collection
Sells FMCG products
Company
Distributors /
Stockists
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Distributor 1
Distributor 2
Distributor 3
and so on…
Successful collection is
reconciled against invoice
/ distributor
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment
Company can help
distributors set-up same
service for wholesalers &
retailers
VA for Wholesaler 1
VA for Wholesaler 2
and so on…
More engaged & happier
downstream supply chain
partners

46. Ed-tech – Virtual Account (VA) for Collection & Payment Reconciliation
For every customer /
transaction a new VA is created
for collection
Provides service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment

47. Health-tech – Virtual Account (VA) for Collection & Payment Reconciliation
For every customer /
transaction a new VA is created
for collection
Provides service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment

48. ERP – Virtual Account (VA) for Collection & Payment Reconciliation
For every customer /
transaction a new VA is created
for collection
Provides service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment

49. Ad-tech / Ad Agencies – Virtual Account (VA) for Collection & Payment Reconciliation
For every customer /
transaction a new VA is created
for collection
Provides service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment

50. SaaS – Virtual Account (VA) for Recurring Collection & Payment Reconciliation
For every customer, a new VA is
created for collection
Provides service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment
Same VA can be used for
recurring collections from
customer
Auto-reconciliation process
repeats every period,; brings
efficiency in the system

51. D2C Brands – Virtual Account (VA) for Collection & Payment Reconciliation
For every customer /
transaction a new VA is created
for collection
Sells product / service to customer
Company Customers
Virtual Account 1
Virtual Account 2
Virtual Account 3
and so on…
Customer 1
Customer 2
Customer 3
and so on…
Successful collection is
reconciled against invoice
/ customer
Auto-reconciliation results in
easy attribution and saving of
man-hours
Auto-reconciliation results in no
callbacks / messages from
company to confirm the payment

52. Business Correspondence (BC) – Virtual Account for Collection & Payment Reconciliation
Unserved
DMT: Cash Coverts into Bank Transfers to Bene Account
AePS Withdrawl: From Bank Account to Cash Withdrawl
BC – Pain Points
• Require efficient payout option
• Reduced margins
• Need more products
• Payout via virtual accounts for
BC to settle funds
• Using virtual account, retailer to
transfer funds to distributor
• Collect money from customers in
assigned virtual account for easy
reconciliation
Payment Solution
Virtual accounts help BC to collect or settle funds and help with easy attribution and reconciliation

53. Unlike payment gateway, on virtual account to virtual account transfer one
just needs to pay per transaction fee vs % fee
DID WE TELL YOU?
This page only for sales pitch, where they can end with this

54. Illustration – How to integrate use-cases on Zwitch website
Gif showcasing how collection via virtual account works & eventually
helps with payment reconciliation
To make the website more
engaging, we can make the
gif on the right-hand side to
move when user clicks on
certain functionalities